SBP’s policy on ‘Banking on Equality’ hailed to empower women

A major barrier remains women’s limited access to capital
 

Committee praises central bank's policy to empower women

The Special Committee on Gender Mainstreaming has commended the State Bank of Pakistan (SBP) for its "Banking on Equality" Policy, which aims to close the gender gap in financial inclusion and empower women economically. However, the committee has urged SBP to ease account opening and loan provisions, particularly by removing collateral requirements for women.

The 7th meeting of the committee was held on Wednesday in Islamabad under the leadership of Dr. Nafisa Shah, MNA. While acknowledging the SBP’s proactive steps towards financial inclusion for women, committee members emphasized the need for more practical measures to ensure women’s full participation in the formal economy.

A major barrier remains women’s limited access to capital, and without collateral, they are often excluded from financial services. The committee urged SBP to take concrete actions to provide women with easier access to financial resources.

 

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In addition to financial access, the committee called on the government to provide political backing to SBP’s "Banking on Equality" initiative.

During the briefing, the SBP Deputy Governor highlighted the progress made under the policy. Over 13,000 women have been inducted into the banking sector, and the proportion of women in the financial workforce has risen from 13% to 17%. Notably, the number of active women-owned bank accounts has surged to 14.4 million, and the number of women borrowers from microfinance banks has increased significantly—from 912,000 to 2.6 million.

He also shared the gender disparity in financial inclusion, noting that 64% of Pakistan’s adult population holds a formal bank account. However, only 47% of adult women have at least one bank account compared to 81% of men, resulting in a 34% gender gap. SBP's recently launched NFIS 2024-28 aims to raise financial inclusion to 75% by 2028 and reduce the gender gap to 25%.

The committee recommended that SBP focus on strengthening women-led micro, small, and medium enterprises (MSMEs) through concessional financing and capacity-building programs.

 

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In addition, the chairman of the Securities and Exchange Commission of Pakistan (SECP) provided an update on steps to support women’s empowerment under the Prime Minister’s Women Empowerment Package 2024. SECP has mandated that all listed companies disclose gender pay gap data in their annual reports and is working to increase women’s representation in the workforce from 28% to 40% by 2030. Furthermore, medium and large-sized companies are now required to have at least one female director on their boards, a move the committee praised as a positive step for women’s empowerment.

The meeting was attended by MNAs Aqeel Malik, Khawaja Izharul Hassan, Munaza Hassan, as well as Senators Rubina Qaim Khani, Saadia Abbasi, Fawzia Arshad, and Khalida Ateeb, along with officers from relevant ministries and divisions.

Source: Business Recorder

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