{"id":107740,"date":"2021-03-12T05:43:48","date_gmt":"2021-03-12T05:43:48","guid":{"rendered":"https:\/\/www.zameen.com\/blog\/?p=107740"},"modified":"2021-03-12T05:43:53","modified_gmt":"2021-03-12T05:43:53","slug":"banking-equality-policy-state-bank-pakistan","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/blog\/banking-equality-policy-state-bank-pakistan.html","title":{"rendered":"\u2018Banking on Equality\u2019 Aims to Empower Women through Financial Inclusion"},"content":{"rendered":"\n

The State Bank of Pakistan is aiming to promote women’s economic empowerment through financial inclusion by launching a comprehensive Banking on Equality policy. <\/p>\n\n\n\n

The gender disparity in the banking sector of Pakistan is no hidden secret. According to the latest statistics published in leading English newspapers, only 29 percent of women in the country have their own bank account, which is among the lowest in the world. For women in banking, things aren\u2019t any better. The staff in banks across Pakistan only comprises 13 percent women. The situation is even worse in branchless banking, where only 1 percent of the agents are women. <\/p>\n\n\n\n

Needless to say, the lack of diversity in the banking industry along with the financial inclusion gap between men and women significantly hamper the national economic growth and development. <\/p>\n\n\n\n

Banking on Equality: A Step Towards Financial Inclusion of Women<\/h2>\n\n\n\n
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The Banking on Equality policy proposed by the State Bank of Pakistan aims for financial inclusion of women <\/figcaption><\/figure>\n\n\n\n

In a bid to provide women with equal opportunities and financial services, the State Bank of Pakistan is reportedly working to introduce a new gender mainstreaming policy under its National Financial Inclusion Strategy (NFIS). The policy, which has been duly named \u2018Banking on Equality Policy: Reducing the Gender Gap in Financial Inclusion,\u2019 will aim to build an inclusive financial system that serves both men and women equally. <\/p>\n\n\n\n

\u201cWomen\u2019s equal access to financial services is a key priority for a country like Pakistan whose female population of more than 100 million significantly lags behind men in terms of financial inclusion and contribution to economic activity,\u201d the State Bank of Pakistan Governor Reza Baqir explained during an in-house event held to celebrate the International Women\u2019s Day. \u201cAlthough Pakistan has made some progress in terms of financial inclusion in recent years, a gaping gender divide remains in the country and without women\u2019s active participation the social and economic potential of our country would remain constrained,\u201d he added.<\/p>\n\n\n\n

Baqir also pressed upon how promoting the financial inclusion of women is important for sustainable economic growth, adding that diminishing gender inequality can also improve socio-economic development outcomes for both the present and future generations.<\/p>\n\n\n\n

\u201cSBP is taking initiatives under its comprehensive national financial inclusion strategy to prioritise women\u2019s financial inclusion and will soon be launching its path-breaking gender mainstreaming policy called \u2018Banking on Equality,\u201d Baqir elaborated. <\/p>\n\n\n\n

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Gender diversity in the finance sector is pertinent for a sustainable national economic growth <\/figcaption><\/figure>\n\n\n\n

Although it is still in the development stages, the Banking on Equality policy not only addresses the gender gap in financial inclusion but also aims to promote workforce diversity in the banking sector through its comprehensive strategy. The initiative prioritises the financial inclusion of women and Pakistan\u2019s first instant digital payment system, Raast<\/a>, to provide advanced digital solutions.<\/p>\n\n\n\n

Furthermore, the State Bank of Pakistan will also promote financial literacy among women in rural and semi-urban areas. The central bank has also launched a credit guarantee and refinance scheme that offers 60 percent risk coverage and a zero percent refinance rate for small businesses run by women.<\/p>\n\n\n\n

According to the leading media outlets, the proposed Banking on Equality policy identifies five key pillars targeted towards \u201cimproving institutional diversity, incorporating a gender lens for development and marketing of tailored bank products, modification of approaches towards women customers\u2019 facilitation, collection of gender-disaggregated data, and prioritising a gender focus in the State Bank of Pakistan\u2019s policies.\u201d<\/p>\n\n\n\n

To conclude, when it comes to the role of financial inclusion in driving women’s economic empowerment, no one can deny its importance. Therefore, the latest initiative undertaken by the central bank is definitely worth applauding.<\/p>\n\n\n\n

On a side note, here are a few banking-related guides that you might find helpful.<\/p>\n\n\n\n