The State Bank of Pakistan (SBP) has launched the second edition of its Banking on Equality (BoE) Policy, introducing new measures to narrow the gender gap in financial inclusion and improve women’s participation in the country’s financial system. The policy builds on the progress made under the original initiative launched in 2021 and places greater emphasis on digital access, women’s entrepreneurship, financial literacy and employment opportunities within the banking sector. According to the central bank, BoE 2026 reflects its commitment to creating an environment in which women can access financial services and contribute more fully to Pakistan’s economic development. The initiative also supports the broader objective of bringing people who remain outside the formal banking system into the financial fold through digitalisation, entrepreneurship and improved access to finance.
The previous Banking on Equality Policy introduced gender-focused measures across Pakistan’s banking industry, with the aim of reducing barriers faced by women as customers and employees. The SBP reported that the overall gender gap in financial inclusion narrowed from 39% in 2021 to 29% in 2025. During the same period, banks inducted more than 17,500 women under the policy, while the proportion of women among banking staff increased from 13% to 17%. Banks also established dedicated departments and teams for women’s financial services to develop products and services that address women’s needs. These results provide the foundation for the second edition, which introduces additional actions and targets intended to extend women’s participation across banking, digital payments and financing.
The central bank’s implementation of the earlier policy was also recognised by the Alliance for Financial Inclusion (AFI), which awarded the SBP the Policy Achievement Award for Gender Inclusive Finance 2026. The new policy builds on that work through four broad priorities: strengthening women’s representation and retention in the financial sector, expanding digital access to financial services, supporting women’s entrepreneurship and financial literacy, and increasing the use of gender-disaggregated data. These priorities are intended to help banks identify gaps in access, design services for different customer groups and monitor progress over time. The focus on data is particularly relevant because reliable information can help financial institutions understand where women remain underserved and assess whether new initiatives are reaching their intended audiences.
BoE 2026 sets targets relating to women’s hiring, customer outreach and representation among branchless banking agents. It also advises banks to introduce daycare facilities for working mothers and establish career progression policies that help women in mid-career move towards leadership positions. These measures address both access to employment and the workplace conditions that can influence whether women remain in the financial sector. Increasing recruitment alone may not be sufficient to improve representation at senior levels if institutions do not also provide opportunities for advancement and retention. By including workplace support and career development in the policy, the SBP is encouraging banks to consider how internal practices can affect women’s long-term participation in the industry.
Digital access is another central component of the updated policy. The SBP has issued instructions aimed at making it easier for women to open and use accounts and payment services through targeted digital onboarding campaigns and simplified digital accounts designed around women’s needs. The policy also encourages greater use of digital payments by women-led businesses. Expanding these services could help women access financial tools without relying exclusively on physical branches, particularly where distance, mobility or time constraints make conventional banking less convenient. However, meaningful access also depends on customers having suitable devices, connectivity, digital skills and confidence in using financial services. The policy’s focus on financial literacy and targeted outreach is therefore relevant to ensuring that account access translates into regular use.
Financing for women-owned and women-led micro, small and medium-sized enterprises is another priority under BoE 2026. The policy encourages banks to improve the share of women borrowers across key financing segments by incorporating gender considerations into credit planning, developing specialised financing products and using digital platforms and fintech partnerships. It also promotes alternative credit assessment and collateral mechanisms to better serve women who have limited formal financial histories. Traditional lending assessments can be difficult for entrepreneurs who lack extensive credit records or conventional collateral, even when their businesses have financing needs. Tailored assessment approaches could help financial institutions evaluate a wider range of applicants, while appropriate risk controls remain necessary for responsible lending.
The policy also aims to strengthen women’s entrepreneurship and financial literacy through support hubs and related initiatives. Access to finance is only one part of building a sustainable business, as entrepreneurs may also need help understanding financial products, managing cash flow, keeping records and using digital payment services. Financial literacy initiatives can help women make informed decisions about borrowing, saving and managing business funds. Support structures can also improve awareness of available services and help women navigate formal financial channels. The SBP’s approach links these efforts with the broader goal of increasing women’s participation in economic activity rather than treating financial inclusion solely as the opening of bank accounts.
To support implementation, the SBP plans to use a monitoring and evaluation framework, quarterly data reporting and regular mystery shopping exercises. These mechanisms are intended to help assess whether banks are implementing the policy and whether customers can access the services being promoted. Quarterly reporting can provide information on progress against policy targets, while mystery shopping can help identify differences between stated procedures and customers’ actual experiences. The effectiveness of these arrangements will depend on the quality of the data collected, consistent participation by regulated institutions and the use of findings to address gaps in service delivery.
The SBP said BoE 2026 was finalised following consultations with local and international stakeholders. The policy is also designed to support the National Financial Inclusion Strategy target of reducing the gender gap in financial inclusion to 25% by 2028 and contribute to the implementation of the World Bank-led Women Entrepreneurship Finance Code initiative. Achieving these objectives will require continued coordination between the central bank, commercial banks, digital financial service providers and other stakeholders. Through workplace reforms, digital onboarding, tailored financing and improved monitoring, the Banking on Equality Policy 2026 seeks to expand women’s access to financial services and create more opportunities for their participation in Pakistan’s formal economy.
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