Financial Crime World

Financial Inclusion in Rural Pakistan: Empowering Women through Access to Finance

Introduction

This report highlights the impact of access to finance on rural women’s agency and empowerment in Pakistan. The study focuses on two interventions by the Microfinance Development Facility (MDF) with Kashf Microfinance and Khushhali Microfinance Bank.

Key Findings

  • Access to Finance and Women’s Agency: Access to finance can contribute significantly to women’s influence and control over household incomes and budgets.
  • Empowerment through Entrepreneurship: Women who use loans for their enterprises experience greater agency, particularly in their ability to influence decision-making in their households.
  • Business Case for Financial Inclusion: The findings from MDF’s interventions with Kashf Microfinance and Khushhali Microfinance Bank indicate that there is a business case for the financial inclusion of rural women.

Sources

The report draws on various sources, including:

  • Annual Insights (2018) by Pakistan Microfinance Investment Company Limited
  • Economic Survey of Pakistan (2018-2019)
  • FAO Pakistan at a glance
  • Kashf Foundation Focus Notes Series (2019)
  • MDF Beyond Income (2018)
  • MDF Systemic change in the fodder market for smallholder farmers in Pakistan (2017)
  • Pakistan Microfinance Network (2019)
  • Syed Mohsin Ahmed, Ali Basharat. (2015). Microfinance Growth Strategy 2020.
  • World Bank (2008). Pakistan Access to Finance Household Survey

Conclusion

The report concludes that financial inclusion of rural women has a business case and can contribute significantly to their empowerment and agency.