Baltistan has called for urgent banking reforms and a decentralised loan approval system to address what officials describe as persistent gaps in financial access despite the region’s economic potential in tourism and agriculture.
Ghulam Abbas, Minister for Information, Broadcasting and Information Technology, raised the issue in a telephonic conversation with the president of the National Bank of Pakistan, Rehmat Ali Hasnie, according to official correspondence.
The minister expressed concern over delays in loan processing and low disbursement under federal financing schemes, saying that despite more than 650 applications submitted from the region, only a small portion had been approved.
Limited disbursement despite demand
According to figures shared in the communication, around Rs. 100–120 million has been disbursed to approximately 35 beneficiaries so far. Officials said this was disproportionately low compared to the region’s population of more than two million and its economic potential.
Concerns over centralised system
The minister said loan approvals were largely centralised in Gilgit, resulting in delays and limited accessibility for applicants in Baltistan. He also cited the absence of key banking services in the region, including verification, valuation, legal processing and mortgage facilities.
He further noted the lack of a Credit Administration Department presence and shortage of trained staff, which he said was slowing down processing and discouraging applicants.
Despite these issues, officials acknowledged that Baltistan maintains a relatively low non-performing loan ratio, suggesting strong repayment behaviour among borrowers.
Proposed reforms
The minister proposed establishing a full loan-processing infrastructure within Baltistan, decentralising approval mechanisms, strengthening local banking branches and introducing sector-specific financing for agriculture and tourism.
Bank response
The National Bank of Pakistan said it would address the concerns on a priority basis and reaffirmed its commitment to improving financial inclusion in underserved regions.
