Financial Crime World

Pakistan Takes Steps Towards Universal Financial Access

Aiming for a Cashless Society

ISLAMABAD, PAKISTAN - In an effort to bridge the financial gap for millions of its citizens, Pakistan has set ambitious goals under its National Financial Inclusion Strategy (NFIS) to achieve universal financial access by 2020.

Key Statistics

  • About 100 million adults in Pakistan lack access to formal and regulated financial services.
  • This accounts for nearly 5% of the world’s unbanked population.

Government Support for Financial Inclusion

The government has implemented various initiatives to support financial inclusion, including:

Benazir Income Support Program (BISP)

  • Successfully transitioned to a digital payment system.
  • Benefiting over 4.8 million households with cash transfers through debit cards and mobile phones.

Electronic Payments

To further encourage electronic payments, the government plans to shift all government-to-person payments from cash to digital transactions. Incentives will also be created for private sector entities to adopt electronic payments instead of cash.

World Bank Group’s Support

The World Bank Group has been a key partner in Pakistan’s financial inclusion efforts, providing technical and financial support through various initiatives such as the Country Partnership Strategy (2015-19). The group has also invested in several projects aimed at expanding access to financial services for women and micro, small, and medium enterprises.

Progress Made

  • According to a report by the Consultative Group to Assist the Poor (CGAP), Pakistan has seen an increase in digital financial inclusion.
  • 6% of adults have mobile accounts compared to South Asia’s average of less than 2.6%.

National Financial Inclusion Support Framework (NFISF)

The NFISF aims to support implementation of the NFIS and expand access to financial services. The framework provides a comprehensive approach to addressing the challenges faced by the country in achieving universal financial access.

Future Outlook

Pakistan’s journey towards universal financial access is ongoing, with continued efforts from both the government and development partners like the World Bank Group. As the country moves forward, it is essential to address the remaining barriers to financial inclusion, including low digital literacy and limited access to financial services for marginalized communities. With sustained commitment and support, Pakistan can achieve its goal of universal financial access by 2020.