The State Bank of Pakistan (SBP) has introduced the third edition of the National Financial Inclusion Strategy (NFIS) for 2024-28, a comprehensive plan aimed at deepening financial inclusion and promoting economic empowerment across the country. This strategy builds on the achievements of its earlier versions, addressing persistent challenges in financial access while capitalizing on advancements in digital technology to foster innovation and growth.
The NFIS 2024-28 seeks to make financial services more accessible to a broader population, particularly underserved and vulnerable groups, through innovative solutions. It focuses on enhancing the adoption of secure and user-friendly digital financial services, strengthening ecosystems for sectors like small and medium enterprises (SMEs), housing, agriculture, microfinance, and sustainable finance, and empowering marginalized groups such as women, youth, and persons with disabilities. By prioritizing these objectives, the initiative aims to drive inclusive economic growth, reduce poverty, and improve the living standards of low-income communities in Pakistan.
The SBP has set ambitious goals under the new strategy. By 2028, it aims to increase financial inclusion to 75% of the adult population and reduce the gender gap in financial access to 25%. These targets align with global commitments, including the United Nations Sustainable Development Goals (SDGs), where financial inclusion plays a critical role in addressing poverty, promoting gender equality, and achieving economic empowerment.
Since the launch of the first NFIS in 2015, Pakistan has made significant strides in financial inclusion. The percentage of adults with a bank account increased from 16% in 2015 to an impressive 64% by 2023. Key initiatives such as the Asaan Digital Account, Asaan Mobile Account, and the Raast Payment System have been instrumental in achieving this progress. These programs simplified account-opening procedures, facilitated access to financial services through mobile technology, and provided secure digital payment infrastructure, respectively, enabling millions of Pakistanis to access and benefit from formal financial services.
Despite these achievements, challenges remain. A strong cultural preference for cash continues to hinder the widespread adoption of digital financial services, particularly among underbanked populations. However, targeted measures like the Banking on Equality Policy (BOE) have addressed some of these issues. Between 2018 and 2023, the number of women holding bank accounts rose dramatically from 13 million to 31 million, reducing the gender gap from 47% to 34%.
The NFIS 2024-28 aims to tackle these enduring barriers head-on, leveraging digital innovation to create a more inclusive financial ecosystem. By addressing systemic bottlenecks and empowering marginalized groups, the SBP seeks to transform the financial landscape into one that is equitable and accessible for all citizens.
This strategy reflects the SBP’s commitment to fostering sustainable economic growth and social empowerment through financial inclusion. With a clear roadmap and continued collaboration between the government, financial institutions, and stakeholders, Pakistan is well-positioned to achieve its financial inclusion goals and ensure that economic opportunities are accessible to every segment of society.