MUZAFFARABAD (Kashmir English): The Bank of Azad Jammu and Kashmir (BAJK) has formally applied for a Scheduled Bank License with the State Bank of Pakistan (SBP), the bank said in a press release on Monday.
The application was submitted by representatives of BAJK to officials of the Banking Policy and Regulations Department (BPRD) during a meeting at the SBP headquarters in Karachi.
With this development, BAJK has become the first bank owned by the Government of Azad Jammu and Kashmir to seek Scheduled Bank status under the regulatory framework of the State Bank of Pakistan.
It is noteworthy that the Bank of Azad Jammu and Kashmir was established in 2006 under an Act passed by the Azad Jammu and Kashmir Legislative Assembly.
Over the past two decades, the Bank has expanded its operations across Azad Kashmir and has played a significant role in promoting financial inclusion, supporting business activities, facilitating government transactions, and contributing to the economic development of the region.
In preparation for obtaining the status of a Scheduled Bank, the Bank has implemented comprehensive reforms and successfully fulfilled all the key conditions set by the State Bank of Pakistan, according to the official statement.
“These measures include increasing the paid-up capital to the minimum regulatory threshold, strengthening the corporate governance system, implementing modern risk management systems, upgrading the information technology infrastructure to modern standards, making the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework more effective and preparing a comprehensive strategic business plan aligned with regulatory requirements.”
The application will be subject to a detailed review as per the prescribed procedures of the State Bank of Pakistan, which will include a fit and proper assessment of the bank’s board of directors and senior management, governance structure, operational readiness and compliance with all relevant regulatory requirements.
The expected duration of this process is approximately eight weeks, it added.
Subject to successful completion of the regulatory review and approval by the State Bank of Pakistan, the bank expects to attain Scheduled Bank status by July 2026.
On this occasion, Shahid Shahzad Mir, Acting President and CEO of Bank of AJK, said, “Submitting the application for Scheduled Bank status is a milestone in the history of the bank and a major step forward for the financial sector of Azad Jammu and Kashmir.”
“This achievement is a reflection of the vision and strong support of the Government of Azad Jammu and Kashmir, the guidance of our Board of Directors, the patronage of the Chief Secretary, Government of Azad Jammu and Kashmir, the Secretary Finance, Government of Azad Jammu and Kashmir, the tireless work, dedication and professional commitment of the employees of the bank and the support of our esteemed customers. We are committed to meeting all the regulatory expectations and requirements of the State Bank of Pakistan and to performing our responsibilities in accordance with the highest standards, compliance and banking services.”
