By embarking on a path of digital financial inclusion initiatives, Pakistan can break down barriers that have constrained women for far too long. You! takes a look...
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In Pakistan, women constitute almost half of the population, holding immense potential to foster economic growth. By uplifting and empowering women to take control of their finances, a ripple effect resonates throughout every facet of society. And by embracing digital solutions in the financial landscape, Pakistan can unlock new opportunities for women to participate actively in the economy. It goes without saying that by embarking on a path of digital financial inclusion initiatives, Pakistan can break down barriers that have constrained women for far too long, championing inclusive access to equal opportunities for growth and expansion.
“As an educationist, I have always been passionate about teaching and guiding young minds, but the unexpected salary cuts during the pandemic pushed me to explore a different path to secure a stable future for my family,” explains Farhana Hamid, who owns a small restaurant in Peshawar. “Believing in the potential of women to thrive, I know they can succeed with the right opportunities and support. Equipping them with essential digital and financial skills can transform their home-based businesses. I have witnessed it before - women can truly make a difference when given the chance,” elucidates Farhana.
The integration of digital technology in the financial sector is a catalyst for advancing inclusivity. By leveraging the capabilities of digital tools and platforms, a nation can bridge the gap between the underserved and access to financial services, unlocking a plethora of opportunities for progress. But despite the many transformative capabilities it offers, a pressing need to bridge the digital divide, particularly focusing on empowering women, has been highlighted by GSMA’s (Global System for Mobile Communications Association) recent findings in Pakistan.
In its pursuit to create a more equitable society, the State Bank of Pakistan (SBP) has embraced an essential approach: bridging the gap and promoting gender equality. Recognising the significance of providing women with equal opportunities and targeted financial services, SBP introduced the ‘Banking on Equality’ (BoE) policy in September, 2021. As part of the National Financial Inclusion Strategy (NFIS), this initiative is dedicated to empowering women by enhancing their access to financial resources and fostering an inclusive banking system that serves everyone impartially.
By effectively implementing the BoE policy and promoting gender mainstreaming, SBP endeavours to build a more inclusive and empowering financial landscape that sets the wheel in motion for sustainable economic growth, poverty reduction, and shared prosperity. The Women Friendliness Grid, featured on the BoE scoreboard, serves as a tool to assess the support and inclusiveness provided by Financial Institutions (FIs) to women and sets a benchmark for evaluating the accessibility of financial services and products specifically tailored to women, with a focus on Micro, Small, and Medium-sized Enterprises (MSMEs).
“The need to bridge the financial inclusion gap is critical. Financial literacy goes beyond managing budgets and investments; it empowers women, fostering them toward personal growth and self-sufficiency. When women are armed with the knowledge and skills to manage their finances effectively, they are better equipped to make sound financial decisions for themselves and their families. This, in turn, fosters greater stability, security, and overall well-being within households and communities,” explains Ghazanfar Azzam, President & CEO, Mobilink Bank.
Through the provision of customised solutions, the Bank has empowered countless women across the country, equipping them with the essential knowledge to confidently take control of their finances. The Bank’s achievement in securing the highest score on the Women Friendliness Grid, in the banking industry, is attributed to its Women Inspirational Network (WIN) programme. Through targeted training sessions and skill-building workshops, the initiative has successfully trained over 1000 women across the country, equipping them with financial skills and knowledge to thrive in their respective fields.
“Apart from WIN, the Bank also designed an exclusive product suite for women entrepreneurs, Bint-e-Hawwa. Through Bint-e-Hawwa, we have made a significant impact, facilitating the disbursement of loans to small women-owned businesses, merely in the first half of 2023. For us, promoting and supporting women-owned MSMEs is not just about addressing gender disparities; it is about recognising and cherishing the value these enterprises bring to the whole economy,” adds Azzam.
By breaking down the barriers that hinder women’s economic progress, Pakistan can unlock a reservoir of untapped potential that can drive the nation’s growth and development to new heights. Ms Farhana’s success story is a testament to what can be achieved when women are provided with equal opportunities and equipped with financial knowledge and support. As women gain financial independence and actively participate in economic activities, the devastating grip of poverty on low-income households and marginalised communities can be loosened, leading to an improvement in their overall well-being.
By creating an enabling environment that nurtures women’s entrepreneurship and fosters their career growth, we can cultivate a society that thrives on diversity, innovation, and equal opportunities for all.
