Karandaaz Pakistan has released the 2024 edition of its Financial Inclusion Survey (K‑FIS), marking ten years of nationally representative demand‑side financial research. The report offers valuable direction for enhancing inclusive finance across gender, geography, and income lines in Pakistan.
The 2024 findings reflect a dramatic improvement in financial inclusion: adult account ownership increased from just 8 percent in 2013 to 35 percent today. A significant driver of this progress is mobile money, which now counts 30 percent of adults among its users—up from less than 1 percent a decade ago. This surge underscores the impact of low‑cost, accessible digital channels on financial outreach.
Despite these optimistic trends, stark disparities remain. Women continue to be heavily underrepresented: only 14 percent own full‑service financial accounts compared to 56 percent of men. Disparities in mobile access add to the challenge—just 46 percent of women own phones, versus 82 percent of men—further limiting their participation in digital finance.
Geographic variation in financial penetration is also significant. Punjab leads with 40 percent inclusion, followed by Islamabad (38 percent) and Gilgit‑Baltistan (33 percent). In contrast, Balochistan and Azad Jammu & Kashmir trail at 23 and 25 percent, respectively. This regional disparity highlights the development challenge beyond populous urban centres.
The government‑supported RAAST payment system shows early signs of accelerating inclusion. Wallet registrations have more than doubled from 17 percent to 41 percent over two years. Users highlighted the speed (77 percent) and affordability (43 percent) of RAAST as notable benefits.
At an online launch event, Karandaaz CEO Waqas ul Hasan noted the persistent gender gap. “Today, 56 percent of adult men in Pakistan have a registered financial account, compared to just 14 percent of women,” he said. Hasan emphasized that inclusion is not a destination but a continuous journey to empower every individual, regardless of gender, to participate in the formal economy.
Yet, formal financial services remain underutilised: 85 percent of adults continue to depend on informal borrowing—mainly friends and family. Trust barriers also loom large: only 9 percent of excluded adults trust banks and just 8 percent trust mobile‑money service providers. Overall, 36 percent of adults feel comfortable using any formal financial service.
Syed Samar Hasnain, Executive Director for Digital Financial Services at the State Bank of Pakistan, underscored the value of demand‑side insights at the webinar. He explained that while supply‑side data from financial institutions is common, granular data about household and individual financial behaviour is rare. Such insights are vital for designing policies that respond to real needs.
The launch webinar featured two notable panel discussions exploring the path forward. The first panel, “From Growth to Gaps – Who’s Included, Who’s Left Behind,” was moderated by Stephen Rasmussen, former CEO of CGAP, and included speakers Jahanzeb Khan (CEO, easypaisa Digital Bank), Mehr Shah (Head of Research, Raqami Islamic Digital Bank), and Umair Ahmad (SBP). The discussion spotlighted emerging challenges as inclusion deepens.
The second panel, “Closing the Gender Gap in Financial Inclusion and Building Financial Resilience,” moderated by Ali Akbar Ghanghro (Karandaaz), brought together Patrick Reily (Uplinq Technologies), Hussam Razi (Innovations for Poverty Action), Halima Iqbal (CEO, Oraan), and Nageen Akhtar (Head of Innovation, Bank Alfalah). The session focused on practical strategies for reducing gender-based exclusion and strengthening financial resilience at the community level.
Overall, Karandaaz’s 2024 K‑FIS provides a nuanced view of financial inclusion in Pakistan. The fourfold increase in account ownership is reflective of transformation in access, but the survey underlines critical challenges in gender equity, regional distribution, usage patterns, and trust. Digital finance initiatives like mobile money and RAAST are propelling progress, yet broader ecosystem reforms and targeted efforts are needed to ensure equitable participation for all.