The State Bank of Pakistan (SBP) has directed commercial banks to increase women’s representation in their workforce from the current 17% to 22% by December 2028 under its Banking on Equality Policy 2026. The central bank has instructed banks to prepare comprehensive action plans with defined timelines for recruiting more women and improving their representation across branches, offices and management positions. The latest directives form part of the regulator’s efforts to address gender disparities in the banking sector by strengthening employment opportunities, improving workplace conditions and creating pathways for women’s professional development. Banks will be expected to take practical measures to increase female participation throughout their organisations rather than limiting recruitment to entry-level positions.
Under the new requirements, banks have been asked to prioritise posting female employees at branches and in cities of their choice wherever operationally possible. The measure aims to address mobility-related difficulties that can prevent women from joining or continuing employment in the banking industry. The SBP has also directed financial institutions to introduce merit-based promotion policies that provide women with greater opportunities to progress into management and leadership positions. In addition, banks will be required to establish mentorship, coaching and training programmes to support the professional development of junior female employees and prepare them for senior responsibilities. These measures are intended to address the continued underrepresentation of women in decision-making positions despite improvements in overall workforce participation.
The central bank has also called for greater representation of women in financing-related roles, particularly in microfinance, agriculture, small and medium-sized enterprises (SMEs), housing and sustainable finance. Banks have been instructed to appoint more female financing officers to strengthen engagement with women borrowers and improve their access to financial services. The SBP has further emphasised compliance with workplace harassment laws and applicable regulations covering maternity, miscarriage and iddat leave. Financial institutions have also been directed to provide daycare facilities or allowances to support working mothers. These workplace requirements are intended to address practical challenges faced by female employees, including limited childcare facilities, working conditions and difficulties associated with balancing professional and family responsibilities.
According to SBP data, women’s share of the banking workforce increased from 13% in 2021 to 17% in 2025. The number of female employees has reached nearly 50,000, with approximately 17,500 women joining the banking sector over the last four years. Despite this growth, women continue to have limited representation in senior management and decision-making roles. The central bank has identified employee retention, mobility restrictions, inadequate workplace facilities and long working hours among the major challenges affecting women’s participation in the financial industry. The target of increasing female workforce representation to 22% by December 2028 will therefore require banks to address both recruitment barriers and the conditions that influence employees’ ability to remain in the sector.
The SBP has also reported progress in women’s access to financial services under its broader financial inclusion initiatives. Women currently hold more than 78 million bank accounts across Pakistan, including over 45 million active accounts. The number of active accounts held by women has increased by 116% compared with the 2021 baseline. In agricultural financing, nearly 377,000 women have received loans amounting to Rs105 billion, while approximately 2.8 million women have accessed microcredit worth Rs152 billion. The number of women-operated branchless banking agent outlets has also exceeded 23,000, representing a 114% increase from the 2021 baseline. These figures reflect expanding participation by women in formal banking, agricultural financing and digital financial services.
The SBP introduced its Banking on Equality initiative in 2021 to reduce gender disparities across the financial sector and encourage banks to develop products and services that address women’s financial requirements. The initiative has contributed to reducing the gender gap in financial inclusion from 39% in 2021 to 29% in 2025. Through the 2026 policy directives, the central bank is extending its focus beyond account ownership and financial access to include employment opportunities, career progression and workplace support within financial institutions. Banks will now be required to strengthen recruitment, promotion and retention practices while improving women’s participation in financing operations. The December 2028 workforce target establishes a measurable requirement for the banking industry as the SBP continues its efforts to expand women’s representation across Pakistan’s financial system.
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