By: S.M.A. Kazmi
By all appearances, Pakistan is racing forward on the path to financial inclusion. Mobile wallets are everywhere, Raast is a game-changer, and stats show more than one in three adults now has access to a regulated financial account. It looks like a digital success story in the making.
But scratch beneath the surface, and the shine dulls quickly.
Inclusion, for many, still begins with someone else’s phone. A woman sending money through her brother’s wallet. A fruit vendor whose nephew checks his balance. An old man registered for Raast but still trekking to the neighborhood shop to collect cash. These are not edge cases — they are the reality for millions. And that reality poses an uncomfortable question: are we building access, or are we just checking boxes?
The Numbers Say ‘Yes.’ Lived Experience Says ‘Maybe.’
In 2014, only 7% of Pakistani adults had a financial account in their name. By 2024, that figure jumped to 35%. Much of that is thanks to mobile money — fast, frictionless, and designed for those long shut out by legacy banks. Wallets have soared from virtually nothing to 30% penetration in a decade. Raast has added even more fuel, pushing digital transactions deeper into the everyday.
It’s an impressive arc. But the real test isn’t who’s onboard — it’s who’s using these services, and how.
According to the latest Karandaaz Financial Inclusion Survey (K-FIS 2024), only 33% of adults with financial access are “active users,” defined as having made a transaction in the past 90 days. And while 45% say they’ve used a formal financial service at least once, far fewer rely on it regularly.
This is the problem with defining inclusion by numbers. Accounts don’t equal empowerment. They don’t mean confidence. And they don’t ensure agency — especially not for women.
Gendered Finance: A System Built for Someone Else
The gender gap in Pakistan’s financial landscape is no longer just a statistic; it’s a structural fault line. Only 25% of women are financially included, compared to 49% of men. Nearly half of Pakistan’s men have a bank account they control. For women, the number hovers at 47% — and even there, control is often not in their hands.
Too many accounts opened under pressure. Too few used independently. It’s financial inclusion without ownership.
Banks are trying to shift this dynamic. Initiatives like BankIslami’s “Mashal Banking” offer tailored, Shariah-compliant services through women-led branches. These aren’t just marketing gimmicks. They speak to a deeper need: financial tools that feel safe, culturally resonant, and truly usable. Especially for first-time women users who are navigating both tech and tradition.
And here’s the twist: Islamic digital banking, often perceived as niche, is surging faster than its conventional counterparts — a reflection of both demand and trust.
Trust Is the Missing Currency
Here lies the real chasm. People may have phones. They may even have accounts. But many don’t have faith.
Despite simplified onboarding and widespread mobile access, 85% of Pakistanis still borrow from informal sources — family, friends, or local committees. That’s not a fluke. That’s a signal. For much of the population, formal banking still feels alien, complicated, or risky.
Muneer Kamal, CEO of the Pakistan Banks’ Association, admits as much. “We’ve made progress,” he says. “But structural challenges remain.” Chief among them: a sprawling cash economy (Rs9.4 trillion in circulation), lack of documentation, and regulatory complexity that keeps innovation at arm’s length.
Banks are now pivoting from access to trust-building — with mobile vans, women-led branches, financial literacy programs, and user-friendly complaint mechanisms. But the truth is: confidence can’t be downloaded. It has to be earned.
The Raast Revolution – Just Beginning?
Raast, Pakistan’s instant payment system, has been hailed as a breakthrough. And rightly so — it’s fast, cheap, and increasingly popular. Wallet registrations through Raast jumped from 17% to 41% in just two years. But the question lingers: is it an equalizer or just a slick new tool for those already included?
Usage remains uneven across regions. Punjab leads at 40%, while Sindh, Balochistan, and AJK lag behind. Urban areas flourish, rural ones trail. Raast may be ready — but are we?
Changing infrastructure is easy compared to changing behavior. PBA’s continued outreach and awareness efforts are necessary, but they’re up against long-standing habits, mistrust, and a fragmented digital ecosystem.
The Illusion of Activity
Pakistan’s financial landscape looks busy — 64% of adults now have deposit accounts. But Kamal points to a sobering detail: more than half of these accounts hold less than Rs5,000. Most sit idle. Dormant. Decorative.
Because access alone doesn’t teach people how or why to save, invest, or borrow. Nor does it fix the disconnect between what banks offer and what people actually need.
Here, Islamic finance offers a potential bridge. Its emphasis on partnership (Musharakah), risk-sharing, and ethical principles can resonate in trust-deficient environments like Pakistan. But to unlock that potential, the system has to feel participatory — not imposed.
From Inclusion to Empowerment
For a decade, we’ve measured progress by how many people got in the door. But real inclusion is what happens after they step inside.
K-FIS 2024 reminds us: only 35% of adults say they feel financially included. Among women, that drops to 14%. That’s not a metric — that’s a message. Access without agency is not empowerment. It’s window dressing.
What comes next must look different. Kamal’s roadmap outlines practical reforms: alternative credit scoring (based on phone use, utility payments), national e-KYC to simplify documentation, and incentives for active usage — not just account opening.
But more than anything, inclusion must become personal. Context-aware. Human.
A bank account shouldn’t feel like a foreign object. A financial app shouldn’t require a nephew to operate. And a woman with a phone in her hand shouldn’t still need permission to send money.
The Real Metric
In the end, Pakistan’s financial inclusion story won’t be judged by how many accounts exist, but by who feels seen. Who feels served. Who feels safe using a system built in their name.
Because inclusion isn’t just about holding an account.
It’s about holding your ground.
