Jazz Records Strong Growth in the First Three Quarters of 2025 on the Back of PKR 37 Billion Digital and Infrastructure Investment
November 10, 2025
The State Bank of Pakistan (SBP) has mandated commercial banks, microfinance banks, and DFIs to implement end-to-end digital onboarding for SMEs under revised prudential regulations. This initiative enables institutions to use GPS, geo-tagging, and video KYC for verifying SME owners and premises. All credit-related documentation, including renewals and agreements, must now be processed digitally, with secure e-signatures and anchor partner confirmations facilitating onboarding.
To streamline operations, data collected during account opening will be reused for credit assessments, reducing duplication. Banks can also source statutory data from authorized third parties, easing the documentation burden on applicants. SBP has instructed institutions to establish digital monitoring systems for loans, including remote verification and digital stock analysis.
Financial institutions must develop or partner for digital credit scoring models, leveraging transaction data, bank activity, and supply chain analytics. SMEs are reclassified by turnover: Micro (up to Rs. 30M), Above Micro (Rs. 30–150M), and Medium (Rs. 150–800M), with startups under five years labeled separately. New financing limits allow Small Enterprises up to Rs. 100M and Medium Enterprises up to Rs. 500M. Liquid assets under lien may now offset exposure limits. These reforms aim to boost financial inclusion and modernize SME banking.
