s I make my way into the market, I see a man standing still in the corner, whose eyes are filled with a sense of fear. I ask him how life is going, and he responds with a sigh, “I am struggling. I cannot figure out why some people are richer than others.” His words speak volumes about inequality with piercing clarity. As Bernie Sanders famously said, “A nation will not survive morally or economically when so few have so much, and so many have so little.”

To make the business environment financially inclusive, providing access to services like banking, credit and insurance is needed. But before introducing people to the complex world of finance, we must work on financial education. As Winston Churchill once said, “The empires of the future are the empires of the minds.”

Financial literacy plays an essential role in achieving widespread social and economic equality. Understanding the mechanics of money, the significance of savings and strategies for investing is what makes a person financially literate. Educating the public on personal finances empowers them to make informed decisions.

This uplifts the lives of people and opens up many opportunities for them. In addition, it not only diminishes economic disparities through financial inclusion but also stimulates the economy. Currently, only 26 percent of the adults in Pakistan are financially literate, as per Standard & Poor’s Ratings Services, Global Financial Literacy Survey.

Educational institutes and banks must ensure their students and customers are educated on the safe use of debit cards, POS machines, online funds transfers and writing cheques. Banks should invest in ads guiding customers through the process of using their online portals. With only 19 percent of the population having a bank account, as per the State Bank of Pakistan, it’s the government’s responsibility to ensure that the remaining 81 percent get access to banks. Additionally, businesses must be encouraged to use POS machines, enabling the FBR to monitor the customers’ buying activity and help companies trace their sales.

To promote financial inclusion, the State Bank must collaborate with commercial banks to provide banking services to high school students through minor bank accounts. Collaborating with high schools can facilitate students in opening bank accounts and educate them on using an ATM card, saving money, tracking expenses and avoiding online scams.

To reduce the risks of fraud or misuse, banks can also limit the maximum amount that can be held in a minor’s account. This collaboration can create a more inclusive environment where everyone can access financial services and learn how to use them.

The government must invest in fin-tech incubators to facilitate innovation in startups. Incubators equipped with modern technology, infrastructure, and adequate resources can digitise the entire industry. Startups can use such platforms to test their innovative ideas and get the support that would otherwise be cost-prohibitive. In addition, it can lead to a more inclusive society where the underserved community gains access to the tools and knowledge they need to participate actively in the economy.

The government must invest in fin-tech incubators to facilitate innovation in startups. Incubators equipped with modern technology, infrastructure and adequate resources can digitise the entire industry. Startups can use such platforms to test their innovative ideas.

We need a mobile-government that integrates all institutions and links them through computerised national identity card numbers, offering services from a single platform. Once verified on this platform, citizens should be recognised as verified for all institutions.

To illustrate, the current lengthy verification process for trading shares at the Pakistan Stock Exchange acts as a barrier to entry for investors. That’s why only 306,000 retail investors are registered in the Pakistan Stock Exchange and only a third of them are active traders.

In a centralised and integrated system, every citizen with a bank account could trade directly. We should have an easy-to-use mobile government platform that facilitates citizens, leading to better governance and increased financial inclusion.

Promoting financial literacy is crucial to helping young people build a strong foundation for their future. One way to achieve this objective is to leverage the power of social media platforms. The government should collaborate with influencers to create finance-related content and engage experts to identify the information that needs to be shared. This strategy can help educate the youth who heavily rely on social media.

Pakistan lags significantly in terms of gender equity and social justice. As per The Global Gender Equity Gap Report 2022, Pakistan ranks 145 out of 146 countries in terms of gender equity. Karandaaz’s survey also reveals men in all regions of Pakistan exhibit significantly greater financial inclusion than women, with the top level for men being in Islamabad (62 percent) and in Gilgit Baltistan (55 percent). Conversely, women’s financial inclusion is comparatively low, with Balochistan having the least (5 percent), Islamabad has the most (17 percent).

What limits women’s participation in the economy? Is it a cultural or social barrier, or is it the system that fails to provide an inclusive environment? During my discussions with women in some regions of Khyber Pakhtunkhwa and Islamabad, I sought their perspectives on why only 8 percent of the women in Pakistan have bank accounts. A few women believed that they needed more financial knowledge to operate a bank account. Some pointed to the cultural barriers restricting their access to banks. Some said they lacked the documents needed to open an account.

During the survey, I came across a widow who had lost her partner in an accident. She wanted to build a formal business to support her children, but cultural and social barriers came in the way. She resorted to an informal small-scale venture, selling homemade clothes in her local network. However, her income wasn’t sufficient to sustain her family’s expenses. She tried then to secure a loan to help expand her business but failed because she could not provide the bank with the documents it needed. Her struggles are reflective of what millions of women like her go through. They require not only financial assistance but also education and the freedom to pursue their dreams.

We must prioritise women’s inclusion in the financial system through targeted campaigns, literacy programmes and a secure digital payments system. Promoting the role of women-led businesses is essential in liberating the economy from the control of a few. We should empower women expand their businesses, facilitate them in accessing credit and streamline the formal processes. Together we can create a just and equal society for all.

Creating an inclusive environment requires a collaborative effort from all stakeholders. By bringing together the planning, education, and IT ministries, along with the State Bank of Pakistan, micro-finance institutions and telecom companies, we can formulate a national strategy for financial literacy and inclusion. Through such collective efforts, we can educate the public on financial services, build their capacity and let them contribute to the formal economy.

The writer is a certified business and financial analyst with a bachelor’s in economics and law. Email: ca_numan@yahoo.com