Financial inclusion in Pakistan increased by 9% during the last two years, WealthPK reports. A survey shows that the increase was witnessed between the years 2020 and 2022. A similar increase in financial inclusion was achieved seven years prior to the year 2020. Karandaaz Pakistan hosted a webinar to share key findings of a survey conducted on financial inclusion in the country. The survey focuses on customer awareness and knowledge of key facets of interoperability in the financial services market.

Chairperson of Karandaaz Pakistan Dr Shamshad Akhtar said that financial inclusion in the country increased by 9% between 2020 and 2022. “Mobile money has been a key driver of this push, with registered mobile money users having more than doubled from 9% to 19% of adult Pakistanis,” she added. She said that the survey also covered sample populations from Islamabad, Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK), all of which had financial inclusion rates above the national average.

“The findings also show significant and chronic gaps regarding the inclusion of women, rural populations and across provinces. Financial inclusion in Punjab, Islamabad, AJK and GB exceeds 30%, while in Balochistan, it does not even reach 15%, with the financial inclusion of women being as low as 5%. Inequality in the provision of financial services means that pockets of Pakistan’s citizenry remain un-serviced. This is no longer acceptable,” said Dr Shamshad.

Director of Agri Finance and Financial Inclusion Department, State Bank of Pakistan, Noor Ahmed, in his address said that over the years, significant progress had been made in financial inclusion. “Key initiatives such as RAAST have been transformative in furthering the inclusion of the marginalised,” he added.

He said since 2007, microfinance clients increased from 0.5 million to 8 million and account ownership increased from 60 million to 150 million with approximately 80 million unique accounts. However, some key challenges need to be addressed. With the expansion of account ownership, there is a substantial number of inactive accounts. This indicates that accessibility and service providers need to be supplemented with awareness building, behaviour change initiatives and developing financial literacy among clients.

Counsellor and Group Head at the UK’s Foreign, Commonwealth and Development Office (FCDO), Mahesh Mishra, said that access to suitable and affordable financial services was a powerful tool to help poor people work their way out of poverty. MNA Dr Nafisa Shah said on the occasion that financial inclusion was a powerful lever and could open up opportunities for vulnerable and excluded segments of the country’s citizenry.

She urged Karandaaz to include qualitative aspects in subsequent editions of the survey. She said that the significance of financial inclusion was not fully comprehended among policy circles. She added that the survey should be presented to policymakers to ensure adequate understanding and suitable actions by political leaders and representatives.

Credit: Independent News Pakistan-WealthPk