Pakistan to have 100 million bank accounts by 2025

Published: November 27, 2015
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PHOTO: NNI

PHOTO: NNI

KARACHI: Pakistan will have as many as 100 million bank accounts by 2025, said Tameer Microfinance Bank CEO Nadeem Hussain, while addressing a summit of business leaders on Thursday.

He said effective banking regulations and better coordination among different stakeholders had made Pakistan one of the few countries where a bank account could be opened in just one minute.

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“Thanks to the concept of the one-minute bank account, the industry is opening close to a million accounts a month,” he said.

There were a total of 41.7 million bank accounts in Pakistan at the end of last fiscal year, according to the State Bank of Pakistan (SBP). More than 31.3 million accounts, or 75% of all bank accounts, belonged to the personal accounts category.

The SBP has recently modified the regulatory framework to quicken the bank account-opening process with the help of the national database authority.

“NADRA is the real-time online depository of the biometric impressions of close to 100 million people,” Hussain said, adding that utilising its database had so far resulted in eight million one-minute accounts.

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The industry expects 50 million accounts by 2020 and 100 million accounts by 2025. Assuming the average balance of Rs1,000 in these accounts, Hussain said these accounts will bring as much as Rs100 billion back into the banking system.

It will also make access to credit possible for people and small businesses that are currently unable to borrow from commercial banks, he noted. “A bank account is the centre of gravity for financial inclusion,” he said.

Speaking on the occasion, Lucky Cement CEO Muhammad Ali Tabba said his group had plans to invest $1.8 billion in the next four years. “The economy and the security situation are on an improving trajectory. The feel-good factor is prevailing,” he said.

Urging people to “believe in Pakistan,” Tabba said the China-Pakistan Economic Corridor (CPEC) will be a game-changer for the economy. “I think $46 billion investment will materialise and transform Pakistan into a major economic hub.”

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Addressing the audience, Planning and Development Minister Ahsan Iqbal said Pakistan has undergone a huge change since 2013. “The world now considers Pakistan an important player in the region, as Chinese investments would integrate Pakistan with Central Asian countries.”

The CPEC will bring development and prosperity in the country with investment of up to $5 billion in infrastructure and networks of roads and bridges, he said.

Published in The Express Tribune, November 27th,  2015.

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Reader Comments (8)

  • Dubya
    Nov 27, 2015 - 9:09AM

    Copying PM Modi’s Ideas ??Recommend

  • asad rizvi
    Nov 27, 2015 - 10:37AM

    Such presentation is misleading and waste of money & time, which is far from reality. By 2025 Pakistan’s population will surge by near 40 million to around 230 million. How 100 million bank account with nearly million account a month growth and will help growth. In 10-years value of Rupee is down from Rs 55 per USD to 104.50. At same proportion & worsening economic condition by then value of Rupee could further erode and may cross Rs 150 per USD. At present value it less than USD 1 Billion. Will 100 Million bank improve National Savings Ratio? Answer is “NO”.
    How and when it plans to impose Tax on Direct income. Only 16 percent (165,184 person) of Tax Filers pay Income tax of over a hundred thousand (or one lakh) rupees. And, only four percent (35,600 person) pay over one million. As many as 38 percent (338.300) pay no tax; and 69 percent (614,100) of filers do it up to Rs 20,000.
    When will it stop raising food support price concept that benefit only few thousand at the cost of 190 million Pakistanis.
    Ahsan is Minister of planing, instead he should tell the nation causes of economic failure and that how his Govt will provide housing, as Pakistanis need nearly 0.5 Million units annually to cater to the growing housing demand due to rapid urbanization? For how long country will depend on expensive foreign borrowing?
    How does the Govt plan to reduce deficit financing that has surpassed Rs 1.3 Trillion on yearly basis. Country’s debt during this Govt tenure exceeded by Rs 4 Trillion to hit Rs 20 Trillion. How will the Govt settle Rs 700 Billion Circular Debt There is big unending list of economic woes.
    So please stop making the nation fool with accounting gimmick. As we do not want to live in fools paradise. Accept economic failure and present yourself and all for accountability. Recommend

  • RT
    Nov 27, 2015 - 11:08AM

    100 million bank accounts by 2025? Our PM Modi announced the same scheme last Independence day August 15th. After 6 months 200 million accounts were created. In addition to that India introduced “Rupay” similar to VISA and Mastercard which will rival both of these. Now all these accounts combined have $6 billion in savings. Recommend

  • Timorlane
    Nov 27, 2015 - 11:13AM

    in Dubai???Recommend

  • Vectra
    Nov 27, 2015 - 11:32AM

    @Dubya:
    yes may be but Modi added 100 million in one year itself and pakistan will take it by 2025Recommend

  • RT
    Nov 27, 2015 - 1:43PM

    @Vectra Not one year. By 6 months nearly 200 million which is double the number quoted in the article for Pakistan. The fact that India is going to create it’s own money transaction brand called “Rupay” which is gaining acceptance within India and to a limited extent abroad is something which makes me happy. Recommend

  • Yaqoob
    Nov 27, 2015 - 5:32PM

    Honestly, I found opening a bank account in Saudi Arabia (as an expatriate) much easier than opening one here back at home. Blame the regulatory requirements or what, the Bank Alfalah branch manager asked me about employment or business details. Where the heck would an unemployed person bring those things? Back in KSA, original Iqama only and in 20 minutes… Yallah account number!Recommend

  • optimist
    Nov 28, 2015 - 3:15AM

    We Pakistanis are so negative. Unfortunately, we also have neighbours who like to brag abnout even if they are living in absolute miserable conditions.
    .
    If dollar rate has gone up, our GDP has also gone up in dollar terms. In year 2000, Pakistani GDP was $62 billion dollars and now it is nearly $240 Billion. The growth is much higher than population growth.
    .
    As far our neighbours, 100 million accounts out of 190 million population is a big deal. Don’t compare apple with oranges. You guys may have bank accounts but toilets are more important. Recommend

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