In today’s crucial update, the State Bank of Pakistan (SBP) directly addresses concerns by stating that the SBP confirms the safety of deposits above Rs 500,000. This declaration serves to assure the public about the strength and security of Pakistan’s banking sector.

SBP’s Assurance on Deposits: A Deep Dive into Pakistan’s Robust Banking Landscape

The SBP confirms the safety of deposits above Rs500,000 in Pakistan. Based on the country’s strong banking system and strict rules, deposits are secure. Recent comments by an SBP official caused some confusion in the media, but the SBP assures that all deposits are safe.

Underscoring the resilience and performance of Pakistan’s banking institutions, the SBP reported a praiseworthy profitability of Rs 284 billion for the first half of 2023, signifying a 125% growth compared to the same period in 2022. This rise enhances the banks’ capital holdings. Moreover, the capital adequacy ratio (CAR) reached a remarkable 17.8% by June 2023, surpassing both the SBP’s mandated minimum of 11.5% and the global benchmark of 10.5%. Such figures accentuate the banking system’s fortified financial position, equipping it to face unforeseen economic challenges.

It’s imperative to highlight the role of the Deposit Protection Corporation (DPC) in this context. The DPC guarantees insurance coverage up to Rs500,000 for every depositor in the rare event of a bank’s downfall. This safeguard aligns with international best practices, ensuring depositors have swift access to their insured funds during bank adversity. Additionally, the State Bank guarantees that even amounts beyond the insured cap can be retrieved via a thorough regulatory mechanism. Currently, a staggering 94% of depositors enjoy full protection as per the Deposit Protection Act of 2016.


The SBP confirms the safety of deposits above Rs500,000. While protections exist for accounts up to this amount, the SBP’s declaration emphasizes the robust trust and unwavering stability of Pakistan’s banking sector.

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