Minister for Information, Broadcasting and Information Technology Gilgit-Baltistan, Ghulam Abbas, has called for urgent banking reforms and a decentralized loan system in Baltistan, highlighting major gaps in financial access despite strong economic potential.
In a telephonic conversation with National Bank of Pakistan President Rehmat Ali Hasnie, the minister raised concerns over low loan disbursement, delays, and lack of infrastructure in the region.
He pointed out that although over 650 loan applications were submitted under federal schemes, only a small portion has been approved, with Baltistan receiving a disproportionately low share of financing.
According to the official letter, only around Rs. 100-120 million has been disbursed to just 35 beneficiaries, despite the region’s population exceeding 2 million and its strong potential in tourism and agriculture.
The minister said key issues include centralized loan approvals in Gilgit, delays at the branch level, and the absence of basic services such as verification, valuation, legal processing, and mortgage facilities within Baltistan.
He also highlighted the lack of Credit Administration Department presence and the shortage of trained staff, which is slowing down loan processing and discouraging applicants. Despite these challenges, Baltistan has maintained a low non-performing loan ratio, indicating strong repayment discipline among borrowers.
To address the issue, the minister proposed establishing a full loan processing infrastructure locally, decentralising approvals, strengthening branches, and launching sector-specific financing for agriculture and tourism.
NBP assured that the concerns would be addressed with priority, reaffirming its commitment to improving financial inclusion in underserved regions.
