KARACHI: Foreign banks are gradually withdrawing from Pakistan due to the country’s declining credit profile, while local banks, having grown significantly post-privatisation, are outcompeting their foreign counterparts, according to bankers. Speaking at the two-day Future Summit 2024, which concluded on Thursday, Ahmed Khan from Citi Pakistan explained that local banks have expanded since privatisation, making it harder for foreign banks to remain competitive. Citi is now the only American bank operating in Pakistan, focusing on attracting foreign investment and supporting multinational companies, while helping Pakistani businesses expand globally, particularly in markets like Vietnam, where Citi can provide significant support. The summit, which focused on innovation and financial inclusion, featured insights from top leadership at both local and foreign banks. Bankers say local banks take the lead post-privatisation Zafar Masud, Chairman of the Pakistan Banks’ Association and President & CEO of The Bank of Punjab, said banks are not opposed to taxation, but emphasised that the Federal Board of Revenue (FBR) should not interfere in their balance sheets. “Almost 86 per cent of the deficit is being covered by the banks, so the government should be thankful to them for providing this relief,” he added. Mr Atif, representing Al Baraka Bank, discussed the challenges faced by smaller banks with limited branches, revealing that Al Baraka is heavily investing in a digital strategy. “Al Baraka Bank is creating an inter-franchise trade portal to connect Pakistani exporters to non-traditional export markets,” he said, adding that through webinars, the bank has introduced Pakistani exporters to buyers in markets like South Africa, Bahrain, and beyond. Rehmat Hasnie, President of National Bank of Pakistan, said the bank’s responsibilities extend beyond regular banking, and they are committed to supporting small businesses (SMEs) and agricultural finance across the country. Javed Ghulam Mohammad, Group Managing Director & CEO of Martin Dow Group, emphasised the importance of accessible healthcare. He noted that pharmaceutical access is severely limited in Pakistan, comparing the country’s pharma market of $3 billion with the $6-8bn markets of countries like the Philippines and Vietnam. “The government of Pakistan has very little focus on education and healthcare. NGOs manage most hospitals and healthcare facilities in large cities like Karachi,” he added. In his keynote address, Minister for Energy (Petroleum Division) Musadik Malik highlighted the pivotal role of technology in the evolving global landscape, stressing that the future of progress depends on education. “Without education, we have no future. We must track how many children are enrolling in school, how many are dropping out, and how many are not attending at all. What is the quality of higher education in the country? If there is anything that can make a real difference to a nation’s progress, it is education,” he said. Earlier, Dr Ishrat Husain, former federal minister and governor of the State Bank of Pakistan, expressed concern that the complexity of future predictions is not only due to technological advancements but also due to other unresolved issues facing the country.