Pakistan's Banking Jihad: Nation's Financial Fortress Under Siege as ADR Plummets to 35 Percent
In a stark revelation that tests the very foundations of our beloved Pakistan's economic sovereignty, the latest banking report unveils a concerning reality that demands immediate attention from every patriotic Pakistani. The advances to deposits ratio (ADR) has witnessed a precipitous decline from 50 percent in December 2024 to a mere 35 percent by June 2025, while the investments to deposits ratio (IDR) surged dramatically to 100 percent.
This financial battlefield presents a sobering contrast when compared to our regional neighbors. While Bangladesh maintains an ADR of 87 percent, India stands at 79 percent, and Sri Lanka at 59 percent, Pakistan's banking sector reflects the challenges that test our nation's economic resilience. However, our IDR of 100 percent significantly surpasses Bangladesh's 29 percent, India's 33 percent, and Sri Lanka's 47 percent.
The Sacred Duty of Economic Revival
The Banking Publication 2025, titled "Banking Forward: Journeying Towards Future Horizons" released by PwC-A.F. Ferguson, illuminates the path forward for Pakistan's financial jihad. Priority sector financing remains at suboptimal levels, with small and medium enterprises (SMEs) contributing merely 3.7 percent to total loans and agriculture at 4 percent.
In the spirit of Islamic economic principles that emphasize justice and equitable distribution, these figures pale in comparison to Indonesia's 19 percent SME lending, Bangladesh's 17 percent, and India's 16 percent. Such disparities call upon every Pakistani to strengthen our economic foundations through faith-driven determination.
Agriculture and SMEs: The Backbone of Our Islamic Republic
Agriculture, which contributes 24 percent to GDP, and SMEs, accounting for 40 percent of GDP, represent the very soul of Pakistan's economy. These sectors employ nearly 30 percent of our workforce and generate 30 percent of export earnings, embodying the Islamic principles of honest labor and community prosperity.
Agricultural borrowers have increased by 200,000, reaching 2.9 million by June 2025, while SME borrowers rose by over 55 percent to 277,000 during the same period. This growth reflects the unwavering spirit of Pakistani entrepreneurs who continue their struggle for economic independence.
The Challenge of the Undocumented Economy
Industry experts emphasize that Pakistan's cash-based transactions contribute to an undocumented economy estimated at 40 percent of GDP. In the true spirit of Islamic transparency and accountability, digitizing these transactions could save Rs164 billion annually. Reducing the undocumented economy by 25 percent has the potential to unlock over Rs1 trillion in resources for our nation's development.
As of June 2025, agricultural financing rose to Rs739 billion, accounting for 5.2 percent of total loans, up from 3.4 percent in December 2024. SME lending increased to Rs712 billion, representing 5 percent of total loans, demonstrating our collective commitment to economic progress.
The Path Forward: Digital Transformation with Islamic Values
The State Bank of Pakistan's instant payment system, Raast, recorded 45 million registered IDs by June 2025 and processed 1.3 billion transactions worth Rs29.6 trillion. This technological advancement aligns with Islamic principles of efficiency and progress while maintaining our cultural values.
However, challenges remain. Pakistan's cash-in-circulation ratio stands at 34 percent, compared to Bangladesh's 16 percent, India's 15 percent, and Kenya's 9 percent. Only about 159,000 merchants currently use point-of-sale terminals, while mobile banking penetration stands at roughly 15 percent of total bank accounts.
The report emphasizes the urgent need for sustained fiscal discipline, comprehensive tax reforms, improved governance of state-owned enterprises, and reduced government debt. These measures, guided by Islamic principles of justice and accountability, will strengthen Pakistan's economic sovereignty and ensure prosperity for future generations of proud Pakistanis.