Annual report reveals banking protection stats in Pakistan

KARACHI: A report has been released detailing the number of depositors protected in the event of a bank’s insolvency in Pakistan, ARY News reported.

The Deposit Protection Corporation (DPC) issued its annual report for the fiscal year 2023-24. According to the report, as of June 30, 2024, the total number of depositors in scheduled banks was 79.2 million. Among them, 78 million depositors are eligible for compensation within the limits set by the corporation.

The report highlighted that the DPC has allocated a total of Rs 148 billion to safeguard deposits. This amount is reserved to cover losses for eligible depositors in the case of unexpected bank defaults.

The DPC was established under the Deposit Protection Corporation Act 2016 and operates as a subsidiary of the State Bank of Pakistan.

Its primary objective is to compensate depositors for losses in case of a bank’s insolvency, provided the insolvency is confirmed by the State Bank.

Read More: State Bank of Pakistan reveals potential designs for new currency notes

Back in September 2024, State Bank of Pakistan (SBP) revealed potential designs for new currency notes across all denominations.

The potential designs have been shortlisted from a number of designs submitted by the citizens in an art competition organised by the SBP.

“We (SBP) are pleased to announce the successful conclusion of Art Competition for the designs of the new banknote series. We appreciate the local artists and designers who participated in the competition showcasing their creativity and talent in this important endeavor,” the central bank said in a statement issued here.

The SBP said that the designs were shortlisted after a rigorous evaluation process conducted by a committee of esteemed experts from relevant fields.

The SBP said that the shortlisted designs of new currency notes are suggestive in nature and are being shared with international designers who have been tasked with working with the central bank.

The international designers along with the SBP officials will finalise designs for the new banknote series.

“The International designers, while drawing inspiration from the local art submissions, will, however, be free to employ their own design expertise and imagination to create final designs for the new banknotes series,” the central bank added.

It read that the SBP will ensure that the new banknote series reflects the rich cultural heritage and progressive vision of our nation, and hopes the final designs fully reflects this collaborative effort.

“Winners will be awarded prize money, as per earlier announcement, to appreciate their contribution to this important national project,” the statement said.