The Asian Development Bank (ADB) has reaffirmed its support for Pakistan’s growing efforts to strengthen financial inclusion for women-led businesses through the newly launched WE Finance Code. Speaking at the launch event in Islamabad, Christine Engstrom, Senior Director Financial Services at ADB, highlighted that the WE Finance Code represents a strategic commitment to dramatically increase access to finance for women entrepreneurs across the country.
The initiative, spearheaded by the State Bank of Pakistan (SBP) in collaboration with global and local stakeholders, seeks to address the longstanding financing gap that restricts the growth of women-owned businesses. By bringing together banks, microfinance institutions, and fintech players under a shared set of principles, the WE Finance Code is positioned to encourage the financial sector to proactively design products and services that cater to women’s unique business needs.
Engstrom noted that the ADB views this program as a crucial step for Pakistan’s economic diversification and sustainable growth. “The WE Finance Code signals a serious drive to remove barriers that have historically limited women’s participation in the formal economy. It is a commitment to expand financing avenues and to empower women entrepreneurs to fully contribute to economic activity,” she said.
Pakistan’s women-led small and medium enterprises (SMEs) face significant hurdles in securing formal financing, often due to structural challenges, lack of collateral, and limited outreach by banks. According to industry data, women constitute a minor share of the overall SME lending portfolio. The WE Finance Code aims to reverse this by setting clear goals for signatory institutions to enhance their lending to women entrepreneurs, improve internal capacity, and track gender-disaggregated data.
During the event, SBP officials underscored that the code is not merely an aspirational document but a framework that requires concrete actions. Banks and financial institutions signing the code will be expected to commit resources, build gender-sensitive strategies, and periodically report on their progress. This approach, they said, aligns with Pakistan’s broader financial inclusion objectives and the government’s push to integrate more women into the economic mainstream.
ADB’s support for the WE Finance Code also reflects the bank’s regional focus on gender equity as a driver for inclusive growth. Engstrom emphasized that similar initiatives have shown strong results in other Asian markets, and the bank is optimistic about Pakistan replicating these successes.
As digital finance channels continue to expand in Pakistan, there is renewed hope that technology can help bridge gaps in outreach and convenience for women entrepreneurs. Mobile wallets, digital credit scoring, and innovative lending platforms are expected to play a role in operationalizing the objectives of the WE Finance Code.
The launch of the WE Finance Code marks a pivotal moment for Pakistan’s financial ecosystem, potentially unlocking new capital flows into segments of the economy that have long been overlooked. With the combined push from regulators, development partners like ADB, and private sector banks, the initiative is poised to set the stage for a more inclusive financial landscape that benefits not just women entrepreneurs, but the economy at large.