SBP raises minimum capital requirement for banks to Rs20 billion

The State Bank of Pakistan has lifted the minimum capital threshold for locally incorporated banks to Rs20 billion and set it at Rs10 billion for development finance institutions. Existing banks and DFIs have until December 31, 2030, to meet the revised levels, under a circular issued on October 27, 2026, Profit by Pakistan Today reported.

Foreign bank branches face assigned capital requirements based on their presence in Pakistan: Rs5 billion for up to five branches and Rs10 billion for six to 50 branches. The SBP said the changes reflect the rising costs of setting up and operating financial institutions, and will apply to new and existing institutions.

Banks and DFIs can count statutory reserves towards the requirement, but cannot withdraw reserves included in the calculation without prior SBP approval. Other existing minimum-capital instructions remain unchanged.