The Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan (SBP), has increased the protection limit for eligible bank depositors to Rs1 million per depositor per bank, doubling the previous coverage amount and extending greater financial security to millions of account holders.
The enhanced protection was disclosed in DPC’s Annual Report for fiscal year 2024-25, released on June 10. The corporation said the increase marks the second upward revision in depositor coverage since its establishment under the Deposit Protection Corporation Act, 2016.
According to the report, Pakistan’s banking sector had 91.78 million depositors as of June 30, 2025, of which 90.83 million qualified as eligible depositors under the protection scheme. Their deposits are now protected up to Rs1 million per depositor per bank.
The report said DPC’s Deposit Protection Fund exceeded Rs200 billion by the end of the fiscal year, underscoring the corporation’s financial capacity to compensate depositors in the event of a member bank failure and to support the resolution of troubled banks when directed by the central bank.
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DPC operates as a wholly owned subsidiary of the State Bank of Pakistan and is mandated to reimburse protected deposits if a member bank fails. The corporation also provides financial support for the resolution of problem banks as part of Pakistan’s financial stability framework.
The annual report highlighted recent amendments to the DPC Act, 2016, which expanded the corporation’s role in supporting the resolution of distressed banks. It also included audited financial statements, an independent auditor’s report, and a five-year comparative review of the corporation’s financial performance and operations.
The increase in depositor protection comes as Pakistan continues efforts to strengthen confidence in its banking system and align its financial safety net with international best practices.
Haris Zameer