The State Bank of Pakistan (SBP) has reported an improvement in the country’s financial inclusion levels, with the Pakistan Financial Inclusion Index (P-FII) rising to 59.5 in calendar year 2025 from 58.1 in 2024. The index provides a broad measure of how effectively people and businesses can access and use financial services across Pakistan. The latest increase indicates continued progress in expanding the reach of formal financial services, supported by digital payment initiatives, account opening campaigns and developments in the banking sector. According to the central bank, the positive movement reflects the implementation of initiatives under the National Financial Inclusion Strategy (NFIS) 2024-28, which aims to broaden participation in the formal financial system and improve access to financial products and services.
The SBP said the improvement was driven primarily by substantial growth in the Usage sub-index, followed by progress in the Access and Quality sub-indices. These components assess different dimensions of financial inclusion. Access relates to the availability of financial services and the ability of individuals and businesses to connect with formal providers, while Usage focuses on whether those services are actively used. Quality considers the broader experience and suitability of financial services for customers. The stronger contribution from Usage suggests that activity within the financial system played a major role in the latest increase, rather than progress being limited to the availability of accounts or financial infrastructure. The central bank’s announcement did not provide the individual scores for each sub-index in the information released.
Digital payments have been among the key developments supporting financial inclusion in Pakistan. The SBP identified the Raast payment system’s merchant onboarding and payment ecosystem as important contributors to the index’s improvement. Raast provides digital payment infrastructure designed to facilitate electronic transfers and support a wider range of payment use cases. Bringing merchants into the digital payment ecosystem can give businesses more ways to receive payments and reduce reliance on cash-based transactions. It can also make digital payments more accessible to customers who prefer to pay electronically. Wider adoption, however, depends on merchants having the necessary tools and understanding how to use the services, as well as customers being comfortable with digital transactions.
The introduction of digital banks was another factor highlighted by the SBP. Digital banking services can provide customers with ways to access financial products through digital channels, reducing the need to visit physical branches for certain transactions. This model may help financial providers reach customers who face geographical or practical barriers to conventional banking. Digital services can also support account management and electronic payments through mobile devices and online platforms. Their contribution to financial inclusion depends on whether services are accessible, reliable and suitable for customers with different levels of digital experience. Consumer protection, clear product information and confidence in handling financial transactions remain important as digital banking expands.
Account opening drives also contributed to the progress recorded in the index. Such campaigns can help bring individuals who do not have formal accounts into the financial system and increase awareness of available banking services. Access to an account can provide a starting point for receiving payments, saving money and using other financial products. However, account ownership alone does not guarantee meaningful financial inclusion. Customers must also be able to use their accounts regularly and access services that meet their needs. The stronger performance of the Usage sub-index therefore highlights the importance of encouraging continued activity after accounts are opened, including payments and other formal financial transactions.
The SBP also pointed to consumer orientation and financial literacy as supporting factors. Financial literacy can help customers understand how financial products work, compare available options and use services with greater confidence. Clear information and customer-focused services can make formal financial products easier to understand and reduce barriers to adoption. These elements are relevant as Pakistan’s financial sector expands its digital offerings, since customers need to recognise the benefits and risks associated with electronic payments, account access and other services. A financial system that is available but difficult to navigate may not achieve the same level of participation as one that combines access with suitable guidance and effective customer support.
The increase in the P-FII from 58.1 in 2024 to 59.5 in 2025 provides a benchmark for assessing Pakistan’s progress under the National Financial Inclusion Strategy 2024-28. The strategy’s implementation involves expanding access to financial services and encouraging their practical use across different sections of society. Continued development of digital payment infrastructure, wider merchant participation, digital banking and account opening initiatives could support further progress. At the same time, the quality and reliability of services will remain important to ensuring that financial inclusion is sustained rather than measured only through initial access.
The latest index results underline the growing role of digital financial services in Pakistan’s inclusion efforts. The stronger contribution from Usage, alongside improvements in Access and Quality, shows that progress is being assessed across several dimensions of the financial system. The SBP’s emphasis on Raast, digital banks, account opening drives and financial literacy reflects an approach that combines infrastructure with customer participation. Further gains will depend on whether individuals and businesses can access suitable services and use them consistently. The P-FII will continue to provide a reference point for tracking developments in financial inclusion and evaluating the progress of initiatives under the national strategy.
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