Bank customers across Pakistan will receive greater financial protection after the Deposit Protection Corporation (DPC) increased the deposit insurance coverage limit from Rs. 500,000 to Rs. 1 million per depositor per bank.
The enhancement was announced in the latest annual report of the Deposit Protection Corporation, a subsidiary of the State Bank of Pakistan.
The revised coverage limit marks the second increase since the deposit protection framework was introduced under the Deposit Protection Corporation Act, 2016. The move is aimed at strengthening depositor confidence and enhancing the stability of Pakistan’s banking sector.
According to the report, Pakistan’s banking system had 91.78 million depositors as of June 30, 2025. Of these, approximately 90.83 million depositors qualify for protection under the deposit insurance scheme and are now covered up to Rs. 1 million in the event of a bank failure.
The DPC also reported significant growth in its financial resources, with the Deposit Protection Fund surpassing Rs. 200 billion by the end of FY2024-25. The fund is maintained to compensate eligible depositors and support resolution measures if a banking institution faces financial distress.
Banking experts view the increase as a positive step toward improving trust in the formal financial system, particularly for small and medium-sized depositors. The enhanced protection is expected to encourage greater participation in banking services while reinforcing overall financial stability.
Officials said the decision reflects the continued expansion of Pakistan’s banking sector and the need to provide stronger safeguards for depositors as the number of account holders continues to grow.
