Financial inclusion is defined as access to formal financial
services including savings, credit, insurance and payments
vis-à-vis formal financial intermediaries, at an affordable
is Financial Inclusion Important?
Pakistan, since the early 1990s, consistency in economic policy
coupled with robust financial sector reforms has resulted
in a degree of macroeconomic stability and improved access
to financial services. But despite positive developments,
Pakistan’s financial sector has not yet reached sufficient
breadth or depth.
More than 17% (27 million) of Pakistan’s population
live below $1 a day
73% (116 million) live below $2 a day
Only 2% of the poor in Pakistan have access to microfinance
The banking sector serves only around six million borrowers
(3.6% of the population), compared to 25 million depositors
(15% of the population)
Only around one in four Pakistani households hold bank
and other accessible accounts
On average there is only one bank branch to serve 20,000
Only 14% of the rural population is banked whereas 67%
of the total population resides in the rural areas.
is Financial Inclusion Being Promoted in Pakistan?
a regulator body, SBP is deeply committed to promoting access
to financial services in the sector. Besides introducing FIP,
SBP has already introduced a variety of measures:
Tax holidays for five years newly established Microfinance
Flexible regulatory regime for MFBs
Mobile phone-based banking services
Development of Islamic Banks
Promotion of Small Enterprises financing through products
and credit scoring systems
Credit schemes for agricultural finance