Urgent Call for Financial Inclusion as Only 14% of Women in Pakistan Are Banked

In a stark revelation by the 2023 Karandaaz Financial Inclusion Survey, only 14 percent of women in Pakistan have access to financial services, a figure that underscores a significant gender gap in financial inclusion. This statistic emerges at a time when the country is grappling with broader economic challenges, making it imperative to address the systemic barriers preventing women's access to banking and financial resources.

Historically, Pakistan has struggled with gender disparities in various sectors, including education, health, and economics. Despite years of advocacy and policy discussions surrounding women's empowerment, the financial sector remains largely male-dominated. The recent data indicates that while financial inclusion among men has improved to 56 percent, women continue to lag significantly behind.

According to Dr. Sara Ali, Associate Professor of Gender Studies at the University of Karachi, "The numbers reflect not just a gap in access but a fundamental oversight by the financial system, which fails to recognize women's unique needs and challenges." This observation is echoed by industry leaders, including Mr. Kamran Khan, CEO of Karandaaz Pakistan, who emphasizes that "financial inclusion is not merely about access; it is about creating an ecosystem that supports women's financial independence."

The barriers to financial inclusion for women are multifaceted. For instance, mobile wallet usage among men stands at 48 percent, compared to a mere 11 percent for women. This discrepancy illustrates broader societal issues, such as digital literacy and ownership of personal devices. According to the Pakistan Telecommunication Authority, as of 2023, only 46 percent of women own mobile phones, compared to over 80 percent of men, which further inhibits their ability to engage with digital financial services.

Moreover, regional disparities exacerbate this issue. In Balochistan, only 4 percent of women have access to financial services, and the situation is even more dire in Azad Jammu & Kashmir, where just 1 percent of women are banked. These statistics are alarming and highlight not just slow progress but a systemic failure to provide equitable access to financial resources.

The implications of this financial exclusion extend beyond individual women; they affect the entire economy. Countries that empower women economically tend to see improvements in household savings, education levels, and overall GDP growth. As noted by the World Bank in their 2021 report, "Empowering women leads to better economic outcomes for families and communities, which is crucial for a country’s sustainable development."

Despite the challenges, there are potential pathways to address this issue. Initiatives like the Benazir Income Support Programme could be expanded to encourage broader financial inclusion. Additionally, mobile operators could be incentivized to simplify the process for women to register SIMs in their names, thereby improving their access to digital banking services.

However, such measures require political will and a commitment to creating a more inclusive financial landscape. According to Ms. Fatima Noor, Director of the Women’s Rights Initiative, "This is not merely a women’s issue; it is a national imperative. Without addressing these gaps, Pakistan risks stagnation and increased inequality."

In conclusion, the current state of financial inclusion for women in Pakistan represents a critical challenge that necessitates urgent attention from policymakers, industry leaders, and civil society. The continuation of this trend poses significant risks not only to women but to the overall economic health of the nation. As the country moves forward, fostering an inclusive financial environment will be essential for sustainable growth and development. Without decisive action, the cost of exclusion will be borne by all, not just the women who are currently locked out of the financial system.