“The true potential of any bank lies in its ability to serve the underserved. At the Bank of Punjab, we believe that digital transformation is the key to unlocking this potential and fostering economic growth in Pakistan’s most neglected sectors," said Rameez Mahmood Bokhari, divisional head, products and policies. As the bank broadens its digital footprint, it aims to translate its innovations into sustainable, long-term growth capable of withstanding the competitive pressures of an evolving banking landscape. Strong performance and digitally-driven lending BOP’s strategy has yielded positive results. In the past year, the bank had an outstanding book of approximately PKR 168 billion ($589 million) in MSME loans as at Dec 2024, comprising small and medium-sized enterprises (SMEs) and agriculture. The bank accounted for 98% of the industry’s net increase in SME borrowers during the first half of 2025, positioning itself as a leader in Pakistan’s push for financial inclusion. While these results reflect strong early progress, Bokhari said the bank remains committed to refining its frameworks and strengthening processes to sustain growth, while prudently managing risks inherent in lending to high-risk and underserved sectors. Bokhari emphasised that the bank’s success lies in its ability to digitise its lending processes. By adopting AI-powered credit scoring and machine learning models, BOP has been able to offer unsecured loans at scale, reducing reliance on manual intervention and accelerating approvals. BOP’s Kissan Card, designed for small farmers, is a prime example of this digital approach. This product has already provided loans to over 710,000 farmers, many of whom are accessing credit for the first time. To facilitate the smooth distribution of Kissan Cards, BOP established dedicated Agri Centers across tehsils (sub-districts). Bokhari highlighted that each center has been managed in collaboration with the local assistant director or agriculture, featuring branded service counters, information desks and biometric verification facilities. The bank also integrated national identity databases and mobile data registries to create a seamless loan application process. According to Bokhari, this not only improved processing speed but also broadened access to banking services in rural areas. Balancing digital and traditional banking Despite its success with digital services, BOP recognises the need to maintain traditional banking channels, particularly in rural regions where digital literacy may be limited. While agri-centres were deployed as a one-time activity during the Kissan Card onboarding drive, this combination of digital and physical banking allowed BOP to serve a wider range of customers while ensuring trust and accessibility. SME and agriculture as core focus areas Bokharis stressed that BOP’s strategy is centered on two key sectors: SMEs and agriculture. With nearly 65% of Pakistan’s GDP driven by the combined contribution of the agriculture and SME sectors, the bank has tailored products like the Livestock Card and Asan Karobar Card to meet the specific needs of small businesses and farmers. These products have played a crucial role in extending credit to sectors that are vital to the country’s economy. According to Bokhari, the bank has also played a significant role in the government’s efforts to support SMEs. By offering targeted financial products, BOP has become a key player in driving economic development and supporting the growth of Pakistan’s small and medium-sized businesses. Risk management and challenges While BOP’s digital transformation has enabled rapid growth, it also presents certain operational challenges. The bank’s strategic focus on expanding access to finance for SMEs and farmers — segments traditionally underserved due to limited collateral — reflects its strong commitment to inclusive growth. According to Bokhari, the implementation of advanced credit scoring models and prudent risk management practices has enabled BOP to balance growth with portfolio quality. He also highlighted that enhanced collection initiatives, such as the introduction of automated robocall systems and the deployment of an expanded field collection team, will further strengthen the bank’s recovery and monitoring processes. Competitive context and ESG considerations BOP’s digital push has placed it ahead of many competitors in Pakistan, Bokhari said, but other banks are quickly catching up with similar offerings. As the competition intensifies, BOP’s competitive edge lies in its ability to offer a streamlined, customer-centric experience. The integration of national registries and mobile data services gives it a unique advantage in terms of speed, accessibility and reach. Bokhari said that the bank has also made strides in offering environmental, social and governance (ESG)-linked financing products, a move to further differentiate it in the market. However, as ESG initiatives come under greater scrutiny, BOP will need to demonstrate the real-world impact of its products to maintain customer trust and regulatory compliance. The road to sustainable growth While BOP has made significant strides in digital banking and SME lending, Bokhari noted the real test lies in converting early success into sustainable growth. The bank must focus on refining its risk management practices and ensuring that its digital innovations can scale effectively over the long term. The ability to maintain a balance between traditional and digital banking services, while managing risk and continuing to innovate, will be key to BOP’s continued success. Bokhari said that as the Bank of Punjab continues to expand its operations, resilient planning and strong customer retention strategies will position the bank to sustain its leadership in Pakistan’s evolving financial landscape.
