Pakistan has increased its Bank Deposit Insurance coverage limit to Rs1 million per depositor per bank, marking a major step toward strengthening financial safety for millions of account holders across the country.
The decision was announced through the latest annual report of the Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan (SBP). The revised limit effectively doubles the previous protection level, offering greater financial security in case of bank failure.
According to official data, the upgrade reflects the government’s continued efforts to build trust in the banking system and align Pakistan’s financial safeguards with international standards. The change also highlights the growing importance of depositor confidence in maintaining stability within the banking sector.
The report shows that Pakistan’s banking sector had 91.78 million depositors as of June 2025. Out of these, around 90.83 million accounts fall under the eligibility criteria for deposit protection. Under the new policy, these eligible deposits are now insured up to Rs1 million per bank per depositor.
The Deposit Protection Fund has also shown strong financial growth, crossing Rs200 billion by the end of the fiscal year. The fund compensates depositors if a member bank fails and supports bank resolution when needed.
Officials stated that the increase in coverage is part of broader reforms introduced under the Deposit Protection Corporation Act, 2016. These reforms have expanded the role of DPC in maintaining financial stability and protecting public savings.
Experts believe the move will boost confidence in the banking system.
