Qudsia Bano

The National Bank of Pakistan (NBP) has achieved a significant milestone by crossing Rs100 billion in total outstanding loans secured against gold, marking a strong push towards financial inclusion and economic empowerment. With over 173,000 borrowers benefiting from the initiative, NBP’s gold loan portfolio has emerged as one of the fastest-growing and most secure consumer lending products in the country.

The gold-backed loans are designed for quick processing and aim to meet urgent financial needs by providing hassle-free access to credit, while ensuring the full safety and return of pledged gold upon repayment.

Rehmat Ali Hasnie, President of NBP, said that this milestone reflects the trust of the people in the institution and its commitment to accessible financial services. “Our Gold Loan portfolio continues to empower individuals and communities across Pakistan, helping them unlock opportunities. We are focused on innovation and sustainable growth to promote financial inclusion,” he said.

Industry experts have also weighed in on the development. Shahid Mehmood, an analyst at the Pakistan Institute of Development Economics, noted, “NBP’s gold-backed lending is helping bridge the gap for individuals without access to conventional credit. It’s a positive step towards building a more inclusive financial ecosystem, especially for rural and lower-income groups.”

Mehmood further emphasised that such initiatives are crucial in a country where access to formal credit remains limited for a large portion of the population. “By leveraging a widely held asset like gold, NBP is enabling households to meet urgent needs such as education, healthcare, and small business financing without resorting to informal lending channels. This not only reduces financial vulnerability but also brings more people into the formal banking system,” he added.

Ahsan Javed, assistant manager of credit risk at a private bank in Lahore, said, “The low default risk and collateralised nature of gold loans make them viable for banks. At the same time, borrowers benefit from relatively easy processing and flexible repayment terms. However, it’s important that borrowers are educated on responsible use to avoid distress borrowing.”

As one of the leading financial institutions in Pakistan, NBP’s achievement signals more than just a growth milestone; it indicates a shift towards sustainable lending models that contribute directly to economic resilience and social empowerment.

Credit: INP-WealthPk