The government has launched an ambitious project to achieve financial inclusion goals and move towards universal financial access, involving women and youth engaged in micro, small and medium enterprises. The National Financial Inclusion Strategy will be launched in collaboration with World Bank across the country and will share risks with small entrepreneurs in the form of credit facility. The International Bank for Reconstruction and Development will provide $80 million while the International Development Association will extend a soft loan of $50million for the project. Reports suggest the executive board of the World Bank will approve $130million project next year. There are no two opinions that the project has been initiated to involve the less privileged class in the financial sector. The youth and woman are often ignored in the nation-building programmes and most of them have no access to bank accounts. The banking network also needs expansion all over the country as there is vast areas where no bank facility is available.
Unfortunately, only 13 percent adults in the country have formal bank accounts. The plan will give a roadmap to the country to achieve its financial inclusion goals by 2020 by expanding financial access to 50 percent adults, including youth and women. At least 100 million Pakistanis are unbanked which account for over 5 percent of the world population. Around 3 percent adults have debit cards and only 1 percent of the accountholders use credit cards facility for financial transactions. At least 1.4 percent employees in the government and private sectors receive their salaries through bank accounts and 2 percent receive government transactions through banks. The youth and women of the country need bank support in the form of credit facilities. The banks have to ensure credit to the microfinance sector, which could be in the form of risk sharing facility.
The business and trade sector of the country has been expanding not due to the government efforts, but increasing population and reforms in the banking system is the need of the hour. The bank rules also need to be changed to facilitate the depositors and not as solely commercial point of view. The women’s access to financial services is lower in Pakistan and there is a need to build momentum to give them maximum financial access. The government is going to receive $130 million from the world financial institutions and it must ensure transparency in the use of funds. The present government tenure is up to 2018 and it should ensure that the next government will continue the programme up to 2020 and achieve the goals.
