Karachi: More than 70% of bank accounts in Pakistan have balances below Rs. 50,000, according to the State Bank of Pakistan’s (SBP) latest report, underscoring persistent wealth inequality and low savings culture in the country.
The report also highlights that only 3% of all accounts hold deposits exceeding Rs. 1 million, pointing to a stark concentration of wealth among a small segment of the population. Experts say this imbalance reflects broader economic challenges, including limited disposable income and inflationary pressures discouraging savings.
Despite low average balances, digital banking adoption is on the rise. SBP data shows that mobile apps now account for 89% of retail transactions by volume, signaling a major shift in consumer behavior toward convenient, technology-driven banking solutions.
Pakistan’s instant payment system processed 371 million transactions worth Rs. 8.5 trillion during the third quarter of fiscal year 2024–25. Meanwhile, the Real-Time Gross Settlement (RTGS) system facilitated Rs. 347 trillion in large-value transactions, demonstrating robust financial infrastructure and growing trust in digital channels.
Analysts note that while digital banking continues to expand rapidly, the underlying issue of low deposit levels needs targeted policy interventions. Efforts to improve financial literacy, increase income levels, and encourage formal savings are seen as critical to building a healthier, more inclusive banking sector.
