The State Bank of Pakistan (SBP) has launched the second edition of its Banking on Equality (BoE) Policy 2026 to reduce the gender gap in financial inclusion and improve women’s access to banking, digital financial services and business financing. The updated policy builds on the progress achieved since the original initiative was introduced in 2021 and establishes additional measures to encourage women’s participation in Pakistan’s formal financial system. Through targeted reforms, expanded digital access and stronger support for women entrepreneurs, the central bank aims to create conditions that allow more women to use financial services, obtain financing and contribute to economic activity. The policy also places greater emphasis on institutional accountability, women’s representation in the financial sector and the use of data to measure progress towards gender-inclusive banking.
According to the SBP, Pakistan’s financial inclusion gender gap declined from 39% in 2021 to 29% in 2025 under the earlier Banking on Equality Policy. During the same period, banks recruited more than 17,500 women, increasing the proportion of female employees in the banking sector from 13% to 17%. Financial institutions also established dedicated departments and teams to develop products and services that better address women’s banking requirements. These developments indicate progress in both customer inclusion and workplace representation, although the remaining gap highlights the need for further action. The SBP stated that the systematic implementation of the earlier policy earned it the Policy Achievement Award for Gender Inclusive Finance 2026 from the Alliance for Financial Inclusion (AFI), recognising its efforts to advance gender-inclusive financial services.
The Banking on Equality Policy 2026 identifies four main priorities for the next phase of implementation. These include strengthening women’s recruitment, representation and retention in the financial sector, expanding digital access to banking and financial services, promoting women’s entrepreneurship and financial literacy, and improving the collection and use of gender-disaggregated data. The framework sets targets related to women’s recruitment, customer outreach and their representation among branchless banking agents. It also encourages banks to introduce childcare facilities for working mothers and establish career development policies that help women progress into senior positions. By addressing workplace barriers alongside customer access, the policy seeks to improve women’s participation in financial institutions and expand their role in the wider banking ecosystem.
Digital banking is another central component of the new policy, with the SBP calling for targeted digital onboarding campaigns, simplified digital accounts designed for women and greater adoption of digital payments by women-led businesses. These measures are intended to make financial services more accessible to women who face practical, geographical or institutional barriers when opening accounts and conducting transactions. Digital channels can provide customers with additional ways to access banking services without relying exclusively on physical branches. However, expanding usage also requires services that are understandable, accessible and suited to customers’ needs. By encouraging banks to improve onboarding processes and promote digital payments among women-led enterprises, the SBP aims to increase participation in the formal financial system and support wider use of technology in everyday financial activities.
The policy also seeks to increase financing for women-owned and women-led micro, small and medium-sized enterprises (MSMEs). Under the proposed measures, banks are encouraged to incorporate gender considerations into their credit planning, develop specialised financing products and use digital platforms and fintech partnerships to reach more women entrepreneurs. The framework also promotes alternative credit assessment methods and collateral mechanisms to address difficulties faced by applicants with limited formal financial histories. Women operating small businesses may encounter challenges when applying for loans if they lack conventional collateral or an established borrowing record. By encouraging financial institutions to consider broader assessment methods and develop products suited to women-led enterprises, the policy aims to improve access to capital for business development, operational requirements and potential expansion. Entrepreneurship support and financial literacy are also included as measures to help women understand financial products and participate more confidently in formal economic activity.
To assess implementation, the SBP will introduce a monitoring and evaluation framework supported by quarterly data reporting and regular mystery-shopping exercises. These measures are intended to help the central bank track progress, evaluate how financial institutions are applying the policy and identify gaps in customer service. Gender-disaggregated data will play an important role in determining whether women are gaining improved access to accounts, financing and digital payment services. Regular monitoring can also help identify differences between policy commitments and the experiences of customers using banking products. The approach places responsibility on financial institutions to demonstrate progress through measurable indicators rather than relying solely on the introduction of new products or internal initiatives.
Finalised after consultations with local and international stakeholders, Banking on Equality Policy 2026 supports the National Financial Inclusion Strategy’s target of reducing Pakistan’s financial inclusion gender gap to 25% by 2028. The policy will also support the implementation of the World Bank-led Women Entrepreneurship (WE) Finance Code initiative, which focuses on advancing access to finance for women entrepreneurs. The SBP has emphasised the importance of stronger public-private collaboration, targeted reforms and sustained support for women-led businesses in building a more inclusive financial system. Achieving the stated targets will depend on how effectively banks implement the measures, expand suitable financial products and address the barriers that prevent women from accessing and using financial services. The policy establishes a framework for the next phase of Pakistan’s financial inclusion efforts, with progress to be assessed through improved access, greater representation and measurable changes in women’s participation in the banking sector.
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