Gilgit-Baltistan Calls for Decentralized Banking to Boost Regional Development
The government of Gilgit-Baltistan has urged banking reforms and a more decentralized loan system to improve financial access and support economic growth in the region.
According to officials, the call was made by Minister for Information, Broadcasting and Information Technology Ghulam Abbas during a telephonic discussion with the President of the National Bank of Pakistan, Rehmat Ali Hasnie.
The minister highlighted concerns over limited loan disbursement despite a large number of applications submitted under federal financing schemes. He noted that only a small portion of applicants have been approved, leaving many potential borrowers without financial support.
He also pointed out that although hundreds of applications were received, only a limited amount of funding has reached beneficiaries so far, despite the region’s population exceeding two million and its strong economic potential in tourism and agriculture.
Officials further noted that centralized loan processing systems, delays in verification, and lack of local banking infrastructure are major barriers to financial inclusion in the region. The absence of key banking services and trained staff has also slowed down the approval process.
Despite these challenges, authorities acknowledged that the region maintains a relatively low non-performing loan rate, indicating strong repayment behavior among borrowers.
To address these issues, proposals have been made to establish local loan processing facilities, improve branch-level decision-making, and introduce sector-specific financing for tourism and agriculture.
The National Bank of Pakistan has assured that it will review the concerns and work toward improving banking access and financial inclusion in underserved areas.
