The Deposit Protection Corporation (DPC), a subsidiary of the State Bank of Pakistan (SBP), has increased the deposit insurance coverage limit to Rs. 1 million per depositor per bank, effectively doubling the previous protection level and expanding financial safety for millions of account holders.
The update was disclosed in the DPC’s Annual Report for FY2024–25, released on June 10.
The revision marks the second increase in deposit protection since the corporation was established under the Deposit Protection Corporation Act, 2016.
According to the report, Pakistan’s banking sector had 91.78 million depositors as of June 30, 2025. Out of these, 90.83 million qualify as eligible under the deposit protection scheme, meaning their deposits are now insured up to Rs1 million per bank.
The DPC also reported that its Deposit Protection Fund exceeded Rs200 billion by the end of the fiscal year, strengthening its capacity to compensate depositors in case of a bank failure or support resolution measures directed by the SBP.
Officials said the enhanced limit is aimed at improving public confidence in the banking system and strengthening financial stability amid a growing depositor base.