Bank of Azad jammu Kashmir to Approach State Bank of Pakistan for Schedule Status by June

Muzzafarabad, (PaJK): Shahid Shehzad Mir, the President of Bank of Azad Jammu and Kashmir (AJK) Bank, announced that the bank is set to approach the State Bank of Pakistan (SBP) by June this year, with the goal of obtaining Schedule Bank status. This status will further elevate the institution’s role and functionality within the financial system, aligning it with major commercial banks in Pakistan-administered Kashmir.

In an exclusive interview with Kashmir Digital, a local media porta President Shehzad Mir emphasized the independence of the bank, stating, “Bank of Azad JammuKashmir Bank is the only bank that belongs to Azad Kashmir. Since I took charge as president, there has been no political interference. All appointments have been made strictly on merit.”

Shehzad Mir dismissed concerns regarding employee exchange programs, clarifying that outsourcing companies were responsible for hiring, and no irregularities had been found in past procedures.

To achieve Schedule Bank status, the President outlined three key conditions set by the State Bank of Pakistan. The first requirement is meeting an equity threshold of 10 billion PKR, for which the Azad Jammu and Kashmir government has assured that 250 million PKR will be provided.

The second condition involves the development of operational systems and internal controls. According to Shehzad Mir, the bank has been working towards procuring the necessary systems but has not yet been able to purchase the software it requires. However, he reassured that the bank plans to approach the State Bank by June to meet the conditions and finalize the application for Schedule Bank status.

Addressing the software procurement, he revealed that the bank had been in talks to purchase a Malaysian-made software system, a project worth 7.5 billion PKR, which has already undergone committee investigations. The project is now on track for a final agreement within the next week.

Shahid Shehzad Mir further highlighted the bank’s substantial contribution to the financial ecosystem in Azad Kashmir, particularly in terms of remittances from overseas Kashmiris. “Kashmir Bank has consistently been the leading recipient of remittances from expatriate Kashmiris. Last year, the bank recorded the highest remittance inflows into Azad Kashmir, which underscores the trust and reliance of the overseas Kashmiri community on our services.”

Since its inception, Kashmir Bank has continued to show resilience and growth. Shehzad Mir shared that the bank now operates 87 branches across Azad Kashmir, and its assets have grown from 28 billion PKR to over 53 billion PKR. The bank’s performance stands as a testament to its efficient operations and dedication to strengthening the local economy.

Looking ahead, Shehzad Mir emphasized the bank’s commitment to social sector development, stating, “In the next 3 to 4 years, Kashmir Bank will play a crucial role in fostering development in the social sector.”

As the only significant financial institution operating in Azad Jammu and Kashmir, Kashmir Bank’s efforts to achieve Schedule Bank status are expected to further consolidate its position in the financial sector, both in Azad Kashmir and the broader Pakistani banking landscape. However, it is important to note that despite its efforts to grow and evolve, Kashmir Bank is still the sole public sector bank in the region, with no private or independent banking options available to the people of Azad Kashmir outside of this institution.

The bank’s aspirations for further growth and its focus on expanding its operations signify a pivotal moment in the region’s financial sector, which remains an integral part of the broader discourse surrounding Kashmir’s economic autonomy within the context of Pakistan-administered Kashmir.

The outcome of the bank’s push for Schedule Bank status will likely have a significant impact on the financial future of Azad Kashmir, shaping the region’s banking landscape for years to come.