Pakistan has made notable strides in financial inclusion over recent years, according to the latest findings from the Karandaz Financial Inclusion Survey (KFIS). The nationally representative survey reveals significant progress in the registration and usage of financial services across different demographics, reflecting growing access and awareness of financial tools among the population.
The overview of registered users shows a substantial rise in the use of mobile money, branchless banking, and digital financial services from 2022 to 2024. Registered users with NBFI, banks, or mobile money platforms increased from 35% in 2022 to 46% in 2024. Mobile money users alone jumped from 19% to 29%, and those registered only with a bank also grew from 16% to 20% during the same period. This upward trend reflects the country’s growing reliance on digital financial services.
The data further breaks down financial inclusion by province. Punjab leads with the highest number of registered users, followed by Sindh and Khyber Pakhtunkhwa. Balochistan and Gilgit-Baltistan still lag in comparison, highlighting the ongoing regional disparities in financial access.
Gender remains a critical factor in financial inclusion. The data reveals that men continue to outpace women in accessing financial services. In 2024, 46% of men were registered users with banks or mobile money platforms, compared to 27% of women. Financial literacy is another area showing disparity. While 32% of men were identified as financially literate, only 12% of women achieved similar understanding.
Urban-rural differences also remain pronounced. Urban areas show 27% financial literacy, while rural regions trail behind at 18%. Additionally, education levels heavily influence financial understanding, with 42% of those with higher secondary education displaying financial literacy, compared to just 7% of those with no formal education.
The need for loans is widespread, with 11.94% of respondents citing education expenses as their primary reason for borrowing, followed by property damage in agriculture, marriage expenses, and increased living costs. However, a concerning 45% of financially excluded individuals reported that their expenses exceeded income frequently, while the majority of financially included individuals reported this happening only sometimes or rarely.
Accessibility to financial services has improved over the years. In 2024, 64% of respondents were within 15 minutes of a financial access point, up from 38% in 2015. However, 5% still do not know how close they are to such services. The use of digital means to access bank accounts continues to expand, with ATMs being the most used method at 84%, followed by mobile apps at 57%, internet banking at 17%, and WhatsApp and IVR (Interactive Voice Response) at 5% and 3% respectively.
Literacy indices show overall improvement. Functional awareness of mobile money and banks is at 75% overall, with a slightly higher understanding among males (81%) compared to females (70%). Similarly, digital literacy, which includes skills such as using mobile phones, making calls, texting, and accessing social media, scored an overall average of 58, with urban areas scoring higher (71) than rural ones (54).
The findings from the Karandaz Financial Inclusion Survey underline the positive trajectory of financial inclusion in Pakistan, driven by the proliferation of mobile technology, improved literacy, and expanded outreach of financial services. However, challenges persist in bridging gender and regional gaps and enhancing financial literacy, especially in rural and underserved populations. The data points to the need for continued investment in digital infrastructure, targeted financial education, and inclusive financial policies to sustain this momentum.
