The State Bank of Pakistan (SBP) has formally launched the Women Entrepreneurship (WE) Finance Code, an international initiative designed to narrow the financing gap faced by women-led micro, small, and medium enterprises (WMSMEs). This move places Pakistan alongside a growing list of countries striving to build a more inclusive and resilient economy by addressing structural barriers that limit women’s access to finance.
The WE Finance Code is a global collaborative effort initially launched by the World Bank Group in 2023. It was developed with the cooperation of 14 governments and eight multilateral development agencies, including the World Bank, Asian Development Bank (ADB), GIZ, European Bank for Reconstruction and Development (EBRD), and Islamic Development Bank (IsDB). The program’s core mission is to motivate financial institutions worldwide to publicly disclose their level of funding to WMSMEs, thereby fostering greater transparency, accountability, and targeted interventions.
As of now, regulators and central banks in 18 countries have joined hands with their technical partners to implement the Code. Notable participants include the United Kingdom, Egypt in collaboration with the EBRD, Sri Lanka and Fiji under the ADB, Indonesia alongside the IsDB, and Nigeria with the World Bank. Pakistan became a signatory in February 2025, with the State Bank of Pakistan stepping forward as the WE Finance Code Anchor for the country. In Pakistan’s implementation, the ADB is acting as the technical partner, backed by a network of both local and international consultants.
By taking on this leadership role, SBP aims to bring together key stakeholders across the financial sector to identify and address persistent gaps in financing for women entrepreneurs. The central bank plans to facilitate coalitions between public and private players, creating targeted strategies to expand funding avenues for WMSMEs. As the champion of this program in Pakistan, SBP hopes to stimulate new business opportunities for financial institutions, improve risk diversification, and ultimately strengthen the broader economic fabric.
The WE Finance Code introduces a structured, data-driven approach to fostering financial inclusion for women. It establishes a multi-stakeholder platform that will not only track and encourage increased access to credit for WMSMEs but also help standardize definitions, reporting, and best practices across the industry. By harmonizing how data is collected and shared, the initiative is expected to drive more consistent and effective support for women entrepreneurs.
Participation in the WE Finance Code also allows banks and other financial service providers to position themselves as leaders in advancing gender equity in Pakistan’s financial landscape. The SBP has highlighted on its official website that expanding financial services tailored to women could potentially unlock an additional $650 million in annual revenues for Pakistan’s financial institutions. This underscores the significant business case for investing in women’s economic empowerment alongside the social imperative.
The adoption of the WE Finance Code aligns with Pakistan’s broader goals of fostering inclusive growth and building a robust digital and financial ecosystem. As more banks come onboard, the initiative is set to reshape how the financial industry engages with women entrepreneurs, opening doors for thousands of women-led enterprises that have long faced systemic hurdles.
