Pakistani Banks Score Poorly in Latest Fair Finance Asia Report

Asian banks, including those in Pakistan, have scored poorly on engagement and accountability mechanisms according to the latest scorecard released by Fair Finance Asia (FFA) assessing to what extent Asian banks enable consumers to actively contribute to sustainability outcomes.  The new scorecard benchmarked the policies of 15 banks across Cambodia, Indonesia, Pakistan, the Philippines, and Thailand in four key areas: financial inclusion, consumer protection, financial literacy and education, and engagement and accountability mechanisms.  While banks scored better, on average, in financial inclusion (5.2/10) and consumer protection (5.5/10), they scored poorly on engagement and accountability mechanisms (1.3/10). Across the four key areas, the assessed banks scored 3.5/10 on average.   At the country level, the best performance is observed for banks headquartered in the Philippines, with an average consolidated score of 4.9 out 10, followed by banks headquartered in Pakistan.  From Pakistan, three banks i.e. United Bank Limited (UBL), MCB Bank, and the National Bank of Pakistan (NBP) were part of the study. At the country level, the best performance is observed for banks headquartered in the Philippines, with an average consolidated score of 4.9 out 10, followed by banks headquartered in Pakistan. The average score for Pakistani banks in financial inclusion was 6.7/10, while the average score was 6.9/10 for consumer protection.  For financial literacy and education, the score dipped to 3.3/10 while for engagement and accountability it was even lower at 1.2/10.  “Banks in Pakistan appear to prioritize profit over purpose, often promoting financial products with very limited knowledge of their impacts on individuals and society. Banks must do more to empower people and protect the planet,” said Asim Jaffry, Country Program Lead, Fair Finance Pakistan.  FFA, with national coalitions, Fair Finance Cambodia, ResponsiBank Indonesia, Fair Finance Pakistan, Fair Finance Philippines, and Fair Finance Thailand, and research partner, Profundo, has called on banks to balance inclusion goals with financial literacy and consumer empowerment initiatives, ensuring that clients are meaningfully informed about their sustainability strategies and financing practices, and are able to hold them accountable for implementing their commitments.