KARACHI: Governor State Bank of Pakistan (SBP) Jameel Ahmed has said that financial inclusion creates a broad base of consumers, savers, and entrepreneurs, and helps stimulate economic growth.
Delivering his key note address at the inaugural event of 1st edition of Pakistan Financial Literacy Week (PFLW) held on Monday at Learning Resource Centre, SBP, Karachi, he said that financial inclusion is a cornerstone of a thriving and equitable economy and SBP fully recognises access to financial services a fundamental right, and SBP’s mission is to empower every citizen by providing them with the tools and knowledge needed to participate fully in the economy.
“Sustained economic growth is not possible if half of the population is systematically excluded from the workforce,” he added.
Ahmed further said that financial inclusion and access to finance is all the more important in developing economies like Pakistan, where the informal economy has a substantial share in overall economic activity and contributes to widespread prevalence of informal and unsafe savings and investment avenues. Better knowledge about financial services and products will help channelise resources towards productive use, he added.
He said that SBP has been on the forefront in spreading financial literacy and in collaboration with the banking industry and academia. The key initiatives taken for expanding financial services to the unbanked and underbanked segments of the society includes implementation of national level strategies and policies such as National Financial Inclusion Strategy, National Financial Literacy Programme (NLFP) and Banking on Equality Policy, he mentioned.
Governor SBP informed that these initiatives are instrumental in disseminating financial literacy to more than 2.9 million individuals, with more than 50 percent female participation. In addition, an impressive 80 percent account opening rate of beneficiaries was witnessed under NFLP.
“It is our duty to dispel common misconceptions about formal financial services, and to engage the public in an informed, yet non-technical manner, to build their trust in the financial system,” he added.
Ahmed said that although the financial inclusion indicators have shown improvement over the past few years, significant efforts are still required to catch up with regional and peer economies.
“In SBP’s strategic plan for the next five years “SBP Vision 2028”, we aim to strengthen the financial inclusion framework through targeted policy initiatives with enhanced focus on digital means,” he said.
The event was attended by Presidents and CEOs of commercial banks, senior officials from the World Bank, Alliance for Financial Inclusion and other stakeholders.
The governor SBP said that an inclusive financial sector is not only important for overall growth of the banking industry but also augments monetary policy transmission channels and increases its effectiveness.
He said that the SBP has always been working on increasing the availability and utilisation of financial services for people and businesses to meet their financial services needs in a fair and dignified manner.
He shared the SBP has been implementing a number of initiatives under the national level policies which are uniquely positioned to benefit all segments of population, i.e. RAAST, ASAAN Digital Account, ASAAN Mobile Account and more recently Digital Banks and specialised schemes to enhance access to finance. The specialised schemes included SME Asaan Finance Scheme (SAAF), Refinance and Credit Guarantee Scheme for Women Entrepreneurs, Line of Credit for MSMEs, and Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS).
On the occasion, World Bank representative Miquel Dijkman, also highlighted the importance of financial inclusion.
After the governor’s inaugural speech, the Excellence Awards were conferred upon various commercial banks that actively participated in the National Financial Literacy Program since its commencement in 2017 and contributed to improving financial literacy among the beneficiaries.
The second session of the event included a panel discussion, where experts and thought leaders explored the future landscape of digital finance. The discussion delved into emerging trends, challenges, and opportunities in the rapidly evolving digital financial ecosystem. Panellists, representing diverse sectors, shared insights on how technology is reshaping the financial industry and discussed strategies to ensure a secure and inclusive digital finance landscape.
The SBP in collaboration with stakeholders actively shapes an ecosystem that embraces technological advancements. This collaborative effort ensures financial stability and sustainability, critical components in the nation’s journey towards a digitally empowered and financially inclusive society. As financial literacy week progresses, a wide range of programmes and activities, both on-ground and online have been designed to raise awareness and educate citizens on the importance of financial literacy in the evolving digital era.
Governor SBP revealed that as of June 2023, there were around 177 million bank accounts in Pakistan. Of these, 83 million are unique accounts, which is 60% of the 137 million adult populations. It is also important to note that the total number of accounts owned by women are 49 million, of which unique accounts are 29 million. These 29 million unique accounts represent more than 43% of the female adult population.
Copyright Business Recorder, 2024
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