The State Bank of Pakistan (SBP) saw a steep decline in profitability for the fiscal year 2024–25, reporting earnings of Rs. 2.5 trillion—a 21% drop compared to the previous year’s Rs. 3.41 trillion.
The central bank’s annual financial statement shows that a Rs. 751 billion fall in profit was largely driven by shrinking interest income and exchange losses. Despite the drop, the SBP transferred Rs. 2.43 trillion in surplus profit to the federal government, in line with legal requirements.
Interest Income Takes the Biggest Hit
The SBP’s primary revenue stream—interest income—slid to Rs. 2.58 trillion in FY25, down from Rs. 3.27 trillion in FY24. Operating income also declined, while exchange rate volatility added further pressure.
Banking Service Commissions Rise
The SBP disbursed Rs. 14.3 billion in agency commissions to banks such as the National Bank of Pakistan (NBP), Bank of Punjab (BOP), and Sindh Bank Limited (SBL), among others. These payments were made under agreements for handling banking services on behalf of federal and provincial governments.
Foreign Assets Surge Despite Profit Dip
Interestingly, the SBP’s foreign currency holdings and investments climbed sharply, reaching Rs. 4.45 trillion by June 30, 2025, compared to Rs. 2.72 trillion a year earlier. This indicates stronger external asset accumulation even as domestic profitability waned.
Tax-Free Status Remains Intact
As per longstanding provisions in the State Bank of Pakistan Act, 1956, and the Income Tax Ordinance, 2001, the SBP’s earnings remain exempt from taxation—a policy designed to shield the central bank’s operations from fiscal burdens.
