Securities and Exchange Commission of Pakistan (SECP) has introduced the Women Equality in Finance Policy Framework (WEFP) for Non-Bank Microfinance Companies (NBMFCs), aiming to enhance women’s financial inclusion and strengthen their role in the country’s financial ecosystem. This initiative marks a significant step in addressing the gender disparity in Pakistan’s financial sector.
Under the new policy, NBMFCs are required to ensure that within the next five years, 70% of all new clients onboarded will be women. To support this goal, the framework encourages the development of tailored financial products specifically designed for women entrepreneurs. The policy also emphasizes inclusive governance by mandating a minimum of 25% female representation on the boards of these institutions and setting incremental workforce inclusivity targets.
WEFP promotes digitization and innovation in the microfinance sector by integrating gender-disaggregated data and introducing training programs aimed at fostering workforce inclusivity. The policy also advocates for the modernization of financial services through digital platforms, aiming to create a resilient and diverse financial sector that can contribute to Pakistan’s economic growth.
The introduction of WEFP comes in response to significant disparities in financial inclusion within the country. Currently, women account for only 13% of formal financial institution account holders, compared to 34% for men. Additionally, the share of female borrowers in the microfinance sector declined from 54% in 2018 to 46% in 2024, despite data indicating that women exhibit superior repayment behaviors. These figures underscore the urgent need for targeted interventions to reverse these trends.
According to the SECP, the WEFP reflects its commitment to advancing gender equity in financial services. By empowering women financially, the framework aspires to drive sustainable economic growth, foster innovation, and build resilience within Pakistan’s financial landscape. The initiative aligns with the broader goal of fostering socio-economic development by ensuring that women are integral participants in the nation’s financial ecosystem.
