By Ayesha Saba

Pakistan’s financial inclusion improved to 69% in 2025, while the gender gap in access to financial services narrowed to 29%, according to the Financial Stability Review 2025 released by the State Bank of Pakistan (SBP).

The report indicates that the increase from 67% in the previous year to 69% in 2025 reflects continued progress in expanding access to formal financial services across the country. The improvement was supported by policy initiatives, digital financial services, and efforts to bring underserved segments into the formal banking system.

The SBP noted that the reduction in the gender gap from 33% to 29% marks a significant step toward more inclusive financial access, although disparities remain. Expanding access for women continues to be a key focus area, as improving financial inclusion among female populations is essential for broader economic participation and development.

Digitalization played a central role in driving inclusion gains during the year. Increased adoption of mobile banking, digital wallets, and instant payment systems such as Raast helped extend financial services to previously unbanked individuals, particularly in remote and underserved areas. These platforms have reduced barriers to entry by lowering transaction costs and simplifying account access.

The report highlights that the central bank’s National Financial Inclusion Strategy (NFIS) 2024–28 and the launch of the National Financial Education Roadmap (2025–29) helped improve awareness and accessibility. These initiatives aim to enhance financial literacy, promote responsible use of financial services, and expand outreach through both digital and traditional channels.

The SBP also introduced Pakistan’s first Financial Inclusion Index to measure progress in access, usage, and quality of financial services. The index provides a comprehensive framework for tracking improvements and identifying gaps in financial inclusion efforts across different segments of the population.

In addition, targeted policy measures have been implemented to support inclusion in priority areas such as small and medium enterprises, agriculture, and microfinance. These initiatives aim to improve access to credit and financial services for underserved sectors, contributing to economic growth and poverty reduction.

The report notes that financial inclusion is closely linked to broader financial stability, as increased participation in the formal financial system strengthens deposit growth, improves transparency, and enhances the effectiveness of monetary policy transmission.

Despite the progress, challenges remain in achieving universal financial access. Structural barriers, including limited awareness, infrastructure gaps, and socio-economic constraints, continue to restrict access for certain segments of the population.

The SBP has set a target of increasing financial inclusion to 75% and reducing the gender gap to 25% by June 2028. Achieving these goals will require sustained policy efforts, continued digital innovation, and collaboration among stakeholders to expand access and improve service delivery across the financial sector.

Credit: INP-WealthPk