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<\/p>\nIt starts, often, with someone else\u2019s phone. A woman in a small town outside Lahore wants to send money to her son in Karachi, but she doesn\u2019t own a mobile wallet. Her brother does, so she asks him to do it. In Karachi, a fruit seller keeps a basic bank account, not to save, but because he needs it to receive welfare payments. He rarely logs in, never checks the balance himself, only his nephew knows how to use the app. Another elderly man is told he\u2019s been registered for something called Raast, but he still walks to the local shop every week to collect cash from his cousin.<\/p>\n
But sometimes, it starts with your own. A tailor in a two Tando Adam, near Hyderabad now takes digital payments through his mobile wallet, no more waiting for change, no more handwritten ledgers. A housemaid in Karachi uses Raast to send part of her salary home instantly, something that once meant hours in line at a branch she never felt comfortable entering.<\/p>\n
These are not outliers. They are the shape of inclusion in Pakistan today – present on paper, uneven in practice.<\/p>\n
In 2014, only 7% of Pakistani adults were financially included, meaning they had an account in their own name with a regulated institution. By 2024, that number has climbed to 35%, thanks mostly to mobile wallets and digital accounts that are easier to open than traditional bank accounts. At a glance, it looks like progress. And in many ways, it is.<\/p>\n
But access tells only part of the story.<\/p>\n
For millions, having an account doesn\u2019t mean using it. For women, especially, the barriers are deeper – fewer phones, fewer SIM cards, and even less confidence. For the poor, the excluded, the unbanked, formal finance still feels unfamiliar, too complicated, too distant, too risky. And for the system itself, the challenge now is not just to count accounts, but to build trust, relevance, and resilience.<\/p>\n
The numbers may have moved. But the ground beneath them hasn\u2019t shifted as much.<\/p>\n
<\/p>\n
A statistical shift<\/strong><\/p>\n Over the last ten years, Pakistan has seen more people brought into the financial system than in the decades before combined. The growth hasn\u2019t been slow or subtle, it\u2019s been sharp and sweeping.<\/p>\n This shift is captured in the Karandaaz Financial Inclusion Survey (K-FIS) 2024, a national study that tracks how real people across Pakistan access, use, and trust financial services. Now in its ninth wave, the survey offers a decade-long view of what financial inclusion looks like on the ground, not just in policy terms, but in lived experience.<\/p>\n In 2014, just 7% of adults had an account. Today, it’s 35% \u2014 over one in three Pakistanis now has access to some form of regulated financial service, be it a bank account, a mobile wallet, or an account with a non-bank financial institution..<\/p>\n But the real story isn\u2019t just the overall growth. It\u2019s how that growth happened.<\/p>\n Banks, which were once the main face of financial inclusion, have seen only a modest rise, from 8% in 2014 to 17% in 2024. In contrast, mobile money wallets have exploded, climbing from virtually zero to 30% in a decade. The shift has been particularly dramatic in the last two years alone, wallet registrations jumped from 19% in 2022 to 30% in 2024.<\/p>\n This shift happened not in boardrooms, but in neighborhoods, on phones of riders, house staff, shopkeepers and home-based entrepreneurs. The ease of opening a mobile wallet, no branch visits, no intimidating paperwork, no waiting lines, meant millions once excluded could now touch the system.<\/p>\n And then came Raast, the State Bank\u2019s instant payment system. In just two years, wallet registrations through Raast jumped from 17% to 41%. Among those using it, 77% cited speed, and 43% said it was more affordable than traditional transfer methods. Even bank registrations with Raast more than doubled, from 22% to 47%.<\/p>\n But while access expanded, it didn\u2019t expand evenly.<\/p>\n Punjab leads at 40%, followed by Islamabad (38%) and Gilgit-Baltistan (33%). Balochistan, AJK, and Sindh lag at 23\u201326%. These numbers aren\u2019t just statistics; they translate to millions of people who are either newly able to pay bills digitally or still standing in line at the local utility office.<\/p>\n Urban areas, unsurprisingly, continue to outpace rural ones. Cities benefit from better telecom infrastructure, more agent networks, and greater mobile phone penetration. In villages and remote areas, access often depends on whether there\u2019s a mobile signal strong enough to open the app, or a shopkeeper willing to guide someone through a transaction.<\/p>\n Even usage varies. K-FIS data shows that while 45% of adults say they\u2019ve used a formal financial service at least once, only 33% are actively using their accounts, meaning they\u2019ve made a transaction in the last 90 days. And fewer still are \u201cadvanced users,\u201d those comfortable with features beyond just cashing in or out.<\/p>\n What this tells us is simple – access has grown, but depth of use still lags. People are opening accounts. But not everyone is using them. Not regularly. Not confidently. Not yet.<\/p>\n Bridging the trust gap <\/strong><\/p>\n In Pakistan, access to financial services has expanded dramatically, but confidence in the system hasn\u2019t always kept pace. Despite easier account opening, mobile onboarding, and branchless banking, many people still prefer the comfort of what they know, informal borrowing, physical cash, and financial arrangements within families or communities.<\/p>\n This isn\u2019t just anecdotal, 85% of borrowers still rely on informal sources. It\u2019s a powerful reminder – inclusion on paper isn\u2019t always inclusion in practice.<\/p>\n For Muneer Kamal, CEO and Secretary General of the Pakistan Banks\u2019 Association (PBA), this is where the next chapter of financial inclusion must begin. \u201cPakistan has made significant strides in advancing financial inclusion,\u201d he acknowledges. \u201cBut longstanding structural challenges persist, hindering further progress.\u201d<\/p>\n Among those challenges is the staggering amount of money still operating outside the formal economy. \u201cCurrency in circulation is estimated at over Rs9.4 trillion in 2025, nearly 26 to 27% of the overall economy,\u201d Kamal points out. The dominance of cash weakens formal systems and makes the shift to digital usage even more difficult.<\/p>\n Documentation requirements are another obstacle. \u201cA large portion of the adult population lacks verifiable income proof, tax records, or formal employment history,\u201d he explains. \u201cThis makes them ineligible for loans or other lending products.\u201d The result – a growing segment with accounts in hand but no real access to the tools that build financial resilience.<\/p>\n But instead of seeing these as dead ends, banks are treating them as starting points. \u201cPBA member banks are adopting a multi-pronged strategy,\u201d Kamal says, \u201cTo further improve trust in formal banking, particularly across underserved and remote communities.\u201d<\/p>\n The first part of that strategy is simplified access, cutting down friction through digital onboarding, branchless banking, and partnerships with Electronic Money Institutions (EMIs). People can now open accounts using only a phone, without visiting a branch.<\/p>\n Yet real change, Kamal notes, also comes from physical presence. Banks are reaching out through mobile vans to low-access districts and establishing women-led branches staffed by female \u201cchampions\u201d who offer both services and reassurance. These efforts are supplemented by the National Financial Literacy Program (NFLP), where banks conduct in-person community sessions to raise awareness and comfort around digital tools.<\/p>\n \u201cIn line with SBP guidelines, banks have collectively strengthened their complaint resolution processes, improved transparency, and enhanced customer communications to build user confidence,\u201d Kamal adds.<\/p>\n This work extends to the design of financial products themselves. The days of one-size-fits-all banking are giving way to customized offerings for youth, rural workers, gig economy participants, and women entrepreneurs. Kamal believes such relevance is non-negotiable, \u201cBanks are tailoring their offerings to ensure that financial solutions are not only accessible but also meaningful.\u201d<\/p>\n Still, innovation is not always seamless. Kamal points out that, \u201cRegulatory complexity continues to slow innovation and inclusion. Although Pakistan\u2019s framework has improved, challenges persist, especially for fintechs and non-traditional service providers.\u201d What\u2019s needed, he says, is \u201cA more enabling framework, one that ensures robust cybersecurity while simplifying compliance.\u201d<\/p>\n And at the center of it all lies data, or the lack of a connected digital ecosystem. \u201cThere are various disjointed data repositories, from NADRA to the banking sector, to telcos and power consumers,\u201d he explains. \u201cBut this data is not accessible via a common platform, which is a starting point for promoting digital lending, the most powerful tool to harness financial inclusion in Pakistan.\u201d<\/p>\n Gendered exclusion<\/strong><\/p>\n She may have a CNIC, a smartphone, and sometimes even an account, but when it comes to full participation in Pakistan\u2019s financial system, the average woman is still standing at the edge, waiting to be invited in.<\/p>\n According to K-FIS 2024, the gender gap in financial inclusion remains stark. Only 25% of women in Pakistan are financially included, compared to 49% of men. And while 81% of men have a bank account, that number drops to just 47% for women, underscoring a 34% gap in gender-based financial inclusion. Often, even those accounts are not truly theirs to control. Many are opened under pressure, or operated by husbands or brothers, leaving women technically included, but not in control.<\/p>\n This disconnect between access and agency is precisely what banks are starting to tackle, especially those offering Shariah-compliant services. For BankIslami, the solution lies not just in offering Islamic banking, but in designing it for her from the ground up.<\/p>\n \u201cThe Mashal Banking initiative by BankIslami is specifically designed to cater to the unique needs of the female population of Pakistan, from all walks of life,\u201d says Sohail Sikandar, Chief Operations Officer. \u201cWhile every product offered by the bank is relevant for female customers, these particular products have been curated through a gender-lens analysis to address the financial needs of women.\u201d The idea is simple, make finance feel safe, simple, and tailored, values that resonate with women across income brackets, particularly those stepping into formal banking for the first time.<\/p>\n But the bank didn\u2019t stop at products. They wanted the experience to reflect the change too. \u201cEarlier this year, we launched its first fully women-managed branch in Karachi to promote gender equality in the workplace,\u201d Sikandar shares. \u201cThe branch, operated entirely by female employees, is an initiative aimed at empowering women as both professionals and customers in Pakistan\u2019s financial sector.\u201d<\/p>\n Interestingly, this tailored approach is unfolding alongside a much larger shift – the rise of Islamic digital banking. And according to Sikandar, it\u2019s outpacing conventional banking models in more ways than one. \u201cThe growth of Islamic digital banking is driven by two key factors – the overall expansion of digital banking and the increasing adoption of Islamic banking,\u201d Sikandar explains. As of now, mobile banking app users in Pakistan have reached 21 million, while branchless banking wallet users total 64.3 million, and e-money users stand at 4.7 million, all showing steady year-on-year growth.<\/p>\n What\u2019s pushing this forward is not just user preference, but also policy direction. \u201cThe State Bank of Pakistan’s goal to convert conventional banks to Islamic banking by 2027 has further accelerated the sector’s expansion.\u201d<\/p>\n That makes the convergence of Shariah-compliant finance and digital platforms a powerful catalyst, especially for reaching women who want faith-aligned, secure, and convenient financial services.<\/p>\n \u201cAs a result, the integration of digital technology with Islamic banking is bound to surpass conventional banking models in both usage and adoption. With expanding digital infrastructure and growing consumer awareness, Islamic digital banking is set to become the new standard, offering ethical and accessible financial solutions to a broader population,\u201d Sikandar adds.<\/p>\n Fast, cheap, connected <\/strong><\/p>\n A few years ago, sending money in Pakistan meant choosing between a queue at the bank or a trip to a money transfer agent. Today, a growing number of Pakistanis are using their phones to transfer funds within seconds, thanks largely to the rise of Raast.<\/p>\n According to K-FIS 2024, the share of adults making digital transactions has grown by 11 percentage points in the past three years, driven by higher smartphone penetration and simplified user journeys. But the question remains, has Raast become the great equalizer? Or is it still finding its feet among the underserved?<\/p>\n The banking sector believes the potential is just beginning to unfold, and the PBA has been right at the center of this transition. \u201cPBA has played a central role in facilitating and coordinating the industry-wide adoption of Raast,\u201d says CEO and Secretary General, Kamal. The efforts, he explains, cut across policy, operations, and public engagement. \u201cPBA has worked closely with SBP to ensure member banks are aligned on timelines, interoperability standards, and incentives. Through subcommittees and bilateral dialogues, PBA has coordinated responses to integration challenges.\u201d<\/p>\n But the work hasn\u2019t stopped at backend systems. Changing habits requires awareness, especially among those who are newer to formal banking. Kamal shares that, banks continue to roll out informational campaigns to promote Raast\u2019s use for everyday transactions, salaries, and government payments, especially for women and small businesses. PBA also monitors wallet usage and advocates for use-case expansion beyond just person-to-person transfers.<\/p>\n From access to readiness<\/strong><\/p>\n Having a bank account is one thing. Knowing how, and why, to use it is another. In Pakistan, financial inclusion often stalls at the point of access. People may have accounts, but many are left inactive.<\/p>\n While over 64% of adults now hold bank deposit accounts (SBP, 2024), Kamal notes that, \u201cThe quality of inclusion remains low. In fact, more than half, 54 million deposit accounts, hold less than Rs5,000, underscoring low savings capacity and even lower activity.\u201d They prefer borrowing from family or saving in cash, not necessarily because banks are out of reach, but because they don\u2019t always feel right.<\/p>\n According to K-FIS 2024, 85% of borrowers still rely on informal sources, and over half of the country\u2019s deposit accounts sit idle with minimal balances. The trust deficit is real, especially when banking feels like it conflicts with religious values.<\/p>\n That\u2019s where Islamic finance has a unique role. \u201cGlobally, Islamic finance is recognized as a well-suited, Shariah-compliant alternative to conventional banking,\u201d says Sohail Sikandar. \u201cThis model eliminates Riba (interest) and operates on a profit- and risk-sharing structure, ensuring that financial services align with the religious values and needs of the population, especially in trust-deficient environments like Pakistan.\u201d<\/p>\n Trust is further built through Musharakah, the principle of partnership. \u201cThe concept of partnership (Musharakah) plays a key role in fostering trust through risk-sharing, which is essential for promoting financial inclusion.\u201d<\/p>\n From numbers to meaning<\/strong><\/p>\n For years, financial inclusion in Pakistan was measured by one thing – how many people had an account. But the more meaningful question is how many people feel financially included, who not only have access, but use it, understand it, and feel it works for them.<\/p>\n The K-FIS 2024 makes this distinction visible. Just 35% of Pakistanis say they feel included in the financial system. Among women, that number falls to 14%. For Kamal, CEO, PBA, these gaps are not just statistical, they are directional.<\/p>\n \u201cThis distinction highlights the need to build not just financial access but financial agency,\u201d he says. \u201cTo meet the National Financial Inclusion Strategy (NFIS) targets by 2028, both policy and market interventions must now shift focus from merely expanding access to enabling meaningful usage, financial empowerment, and inclusive credit access.\u201d<\/p>\n What might that shift look like? Kamal outlines a roadmap, not in slogans, but in systems. \u201cSimplify lending eligibility by utilising alternative credit scoring models that incorporate mobile usage, utility bills, and transaction data,\u201d Kamal shares.<\/p>\n In a country where large segments of the population operate outside formal employment or tax systems, rethinking creditworthiness is essential. Traditional requirements often exclude the very people inclusion is meant to serve.<\/p>\n Then there\u2019s the matter of access friction. \u201cEnable national eKYC and interoperability to reduce documentation friction and account dormancy,\u201d Kamal adds, pointing to the fatigue users experience when navigating siloed platforms and redundant verifications.<\/p>\n The challenge isn\u2019t just onboarding, it\u2019s engagement. PBA believes financial literacy, especially at the grassroots, is the missing link. \u201cScaling digital and financial literacy, especially through public-private campaigns targeting women, youth, and rural areas,\u201d Kamal explains, is the only way to convert passive access into active empowerment.<\/p>\n And finally, incentives – rewards for action, not just sign-up stats. \u201cIncentivise usage, not just account opening, through cashback schemes, subsidised Raast-linked payments, or saving bonuses,\u201d he says.<\/p>\n It\u2019s a shift from counting accounts to creating capacity. Because inclusion is not just about who holds an account, it\u2019s about who feels they can hold their ground, make decisions, and shape their financial future. And that, as this decade of data shows, is a far more meaningful metric.<\/p>\n For a woman with a phone in her hand, or a tailor with his first digital wallet, inclusion isn\u2019t just about being counted. It\u2019s about being seen, and served, by the system built in their name.<\/p>","protected":false},"excerpt":{"rendered":" It starts, often, with someone else\u2019s phone. A woman in a small town outside Lahore wants to send money to her son in Karachi, but she doesn\u2019t own a mobile wallet. Her brother does, so she asks him to do it. In Karachi, a fruit seller keeps a basic bank account, not to save, but…<\/p>","protected":false},"author":3,"featured_media":79334,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-79392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-updates"],"_links":{"self":[{"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/posts\/79392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/comments?post=79392"}],"version-history":[{"count":1,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/posts\/79392\/revisions"}],"predecessor-version":[{"id":79393,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/posts\/79392\/revisions\/79393"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/media\/79334"}],"wp:attachment":[{"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/media?parent=79392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/categories?post=79392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bankislami.com.pk\/ur\/wp-json\/wp\/v2\/tags?post=79392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/i.tribune.com.pk\/media\/images\/financial-inclusion-31751139190-2\/financial-inclusion-31751139190-2.jpg\")
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