ISLAMABAD: Experts on Wednesday deliberated upon the crucial role of financial inclusion in empowering women, noting its potential to drive both social and economic progress.
Sharing their views at a panel discussion titled ‘Towards Economic Empowerment: Women’s Financial Inclusion in Pakistan’, the experts agreed that in the paradigm of empowerment and financial access, one was impossible without the other.
The panel was part of the Sustainability Development Conference (SDC) organised by the Sustainability Development Policy Institute (SDPI).
Benazir Income Support Programme (BISP) Secretary Amer Ali Ahmad said: "Economic empowerment of society is contingent on the financial inclusion of women."
BISP, Pakistan's flagship social safety net programme, is a prime example, serving as a lifeline for many women, particularly those who were heads of their households.
“Many women in BISP are recognised as heads of the family, and it is perhaps their only source of income,” Mr Ahmad said.
Helene Paust, deputy head of development cooperation at the German embassy, echoed this sentiment, stressing that gender inequality remained a significant barrier when it came to financial autonomy.
"The ability of women to make money and spend money is severely restricted due to them being dependent on male family members," Ms Paust said.
Head of the Adaptive Social Protection Project at GIZ Johanna Knoess pointed out the positive impact of financial inclusion on poverty reduction and women empowerment, citing a successful case in Kenya, where 194,000 households were lifted out of poverty thanks to financial inclusion.
“Financial inclusion helps reduce poverty, improves the economy, and plays a key role in empowering women and girls," Ms Knoess said.
Senior Policy Adviser at GIZ Frank Schneider moderated the panel discussion alongside Dr Fareeha Armughan.
Managing Director of Kashf Foundation Roshaneh Zafar gave a presentation on the financial empowerment of women.
She said while mobile phone penetration had reached an impressive 80 per cent in Pakistan, their potential was far from being fully realised.
"Women are more willing than men to choose digital financial services, and mobile wallets offer a critical opportunity for Pakistan’s under-banked and unbanked population," Ms Zafar said.
However, the path to full financial inclusion is not without its challenges.
Ms Zafar pointed out that financial inclusion could not simply be a matter of access; women must have the agency and support to make use of it effectively.
"Financial inclusion is a way of paving the way for improving women empowerment, but it did not do the job until women had the agency to utilise this access,"Ms Zafar said.
Deputy Governor of the State Bank of Pakistan (SBP) Saleem Ullah shed light on the progress made in increasing account ownership in the country, which rose from 16 per cent in 2016 to 64 per cent in 2022, with women's account ownership reaching over 40 per cent.
However, he acknowledged that while account ownership was growing, many customers still lacked access to a full range of financial services, such as credit and investment opportunities.
“We took several initiatives, including remote account opening and Asaan mobile accounts, to facilitate access,” he said.
Efforts to bridge the gender gap in financial services are ongoing, with SBP introducing the ‘Banking on Equality’ initiative in 2022 to make the financial environment more conducive for women, he added.
President of JazzCash Murtaza Ali argued that digital platforms were the only viable solution to increase female participation in the formal financial system.
Even after opening mobile wallet accounts, women weren't using them, so we had to create create incentives, like discounts on store purchases, to encourage usage," Mr Ali explained.
At the regional level, CEO of the Punjab Social Protection Authority (PSPA) Ali Shehzad reinforced the economic importance of investing in women.
"Investments made in women are the most beneficial in the long run, both socially and economically," Shehzad said.
His authority runs several programmes aimed at supporting women, including financial literacy and marketable skills training for young married couples.
The forum concluded with a call for a more inclusive ecosystem that supports women empowerment, urging that the participation of all family members — especially husbands and mothers-in-law — be considered to create a more supportive environment for women.
GIZ Pakistan country director Maria-Jose Poddey gave the closing remarks and shed light on the new initiative called Center of Adaptive Social Protection and Economic Empowerment (CASPEE), which would further the objectives of women empowerment and financial inclusion.
SDPI Executive Director Dr Abid Suleri concluded the session by saying that the learning from discussions like today should be included in the curriculum taught to civil servants to truly sensitise the society and make a collective effort to strengthen women empowerment.
