Gilgit-Baltistan Demands a Decentralized Banking System to Boost Regional Growth

Information Minister of Gilgit-Baltistan, Ghulam Abbas, recently demanded urgent banking reforms for Baltistan. He called for a decentralized loan system to boost regional economic growth. Specifically, he highlighted serious gaps in financial access. Baltistan holds strong economic potential in tourism and agriculture. However, its population of over 2 million faces severe financial hurdles.

Abbas raised these concerns during a telephone call with National Bank of Pakistan (NBP) President Rehmat Ali Hasnie. He pointed out low loan disbursement, extreme processing delays, and weak banking infrastructure across the region.

Currently, authorities strictly centralize loan approvals in Gilgit. Consequently, banks delay cases at the branch level in Baltistan. Applicants submitted over 650 loan requests under federal schemes. Yet, banks approved only a tiny fraction. Authorities disbursed just Rs. 100 to 120 million to a mere 35 beneficiaries.

Furthermore, Abbas identified a severe lack of basic financial services. Branches completely fail to provide verification, valuation, legal processing, and mortgage facilities locally. Moreover, the region lacks a Credit Administration Department and suffers from a massive shortage of trained staff. As a result, banks slow down loan processing and heavily discourage applicants.

To resolve these systemic issues, Abbas proposed establishing a complete local loan processing system. He recommended decentralizing approvals immediately. Additionally, he advised stakeholders to strengthen local bank branches. Finally, he pushed for sector-specific financing designed specifically for agriculture and tourism.

In response to these demands, the National Bank of Pakistan gave firm assurances. NBP President Rehmat Ali Hasnie stated that the bank will address these concerns on priority. Ultimately, the institution aims to improve financial inclusion across these underserved areas.

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