Arooj Zulfiqar

Empowerment of women entrepreneurs through financial inclusion is not only an imperative for achieving gender equality but is also a driving force for economic growth and social development. This was highlighted by Kabeer Naqvi, the Chief Executive Officer of U Microfinance Bank, while talking to WealthPK.

However, he said women entrepreneurs continued to face multiple challenges, particularly in accessing financial resources and services.  He said it was shocking that the loan application form mandated married women to get their husbands' approval before the amount was disbursed to them.

“We have also faced a situation where women get only about half the loan amount on the same cash flow as male applicants,” he said, adding that the U Microfinance Bank was trying to provide ease to women in accessing loans. He said Pakistan still had a lot to do before ensuring the financial inclusion of women.

He said women’s financial inclusion would play a transformative role by providing them with the necessary financial tools and resources to start and expand their businesses. “It will enable them to overcome the traditional barriers they face like limited collateral, inadequate credit history, and social biases.”

He suggested fostering a collaborative approach involving all stakeholders to ensure that women entrepreneurs received the necessary support, opportunities, and resources to thrive in their entrepreneurial journeys. “They should have equal access to financial services, including loans, grants and investment opportunities.”

According to WealthPK research, Pakistan has the lowest women entrepreneurship rate in the world, with only 1% of women choosing entrepreneurship compared to 21% of men. The labour force survey 2020-21 revealed that approximately 44.9% of the total population constitutes the labour force. Out of this figure, men constitute 67.9% compared to women’s 21.4%. Despite experiencing a gradual increase over time, Pakistan still lags behind peer economies with regard to female labour force participation, positioning it among the countries with the lowest rates.

Credit : Independent News Pakistan-WealthPk