Muzaffarabad: The Bank of Azad Jammu and Kashmir (BAJK) has achieved a historic milestone by formally lodging its application for the grant of Scheduled Bank Licence with the State Bank of Pakistan (SBP).
According to State Bank of Pakistan, the application was submitted during a meeting between representatives of the Bank of Azad Jammu and Kashmir and officials from the Banking Policy and Regulations Department at SBP Headquarters in Karachi. This move marks a significant step in the Bank's transformation journey, aiming to become the first government-owned bank of Azad Jammu and Kashmir to attain Scheduled Bank status under the SBP's regulatory framework.
The Bank of Azad Jammu and Kashmir, established in 2006 through an Act passed by the Azad Jammu and Kashmir Legislative Assembly, was created to serve the financial and developmental needs of the region. Over the past two decades, it has expanded its operations and played a role in promoting financial inclusion, supporting businesses, and contributing to economic development.
In preparation for obtaining Scheduled Bank status, BAJK has undertaken comprehensive reforms, fulfilling major requirements prescribed by the State Bank of Pakistan. These include enhancing its paid-up capital, strengthening corporate governance, implementing robust risk management systems, modernizing IT infrastructure, enhancing AML/CFT compliance frameworks, and preparing a strategic business plan aligned with regulatory expectations.
The application's evaluation by the SBP will involve detailed assessments of the Bank's Board of Directors and senior management, governance structures, operational readiness, and regulatory compliance. The expected processing period is approximately eight weeks, with the Bank anticipating Scheduled Bank status by July 2026, subject to successful regulatory review and approval.
Mr. Shahid Shahzad Mir, Acting President and CEO of BAJK, stated that the submission represents a landmark achievement and a major step forward for Azad Jammu and Kashmir's financial sector. He emphasized the Bank's commitment to meeting all regulatory expectations and maintaining high standards of governance and compliance.
Upon achieving Scheduled Bank status, BAJK plans to expand its operations beyond Azad Jammu and Kashmir, establish branches across Pakistan and abroad, introduce innovative banking products, and explore international expansion opportunities. This development is expected to enhance the Bank's capacity to mobilize deposits, support trade and commerce, and contribute to the socio-economic development of the region.
The Bank of Azad Jammu and Kashmir expressed gratitude to the Government of Azad Jammu and Kashmir, the State Bank of Pakistan, its customers, stakeholders, and employees for their support in this transformative journey.