Financial inclusion surges, gaps persist

Financial inclusion in Pakistan has quadrupled in a decade, rising from just 8% in 2013 to 35% in 2024, according to the latest Karandaaz Financial Inclusion Survey (K-FIS). This growth is largely attributed to mobile money usage, which now reaches 30% of adults, up from under 1% ten years ago.

Karandaaz Pakistan released the 2024 K-FIS, marking ten years of demand-side financial data and offering insights for advancing inclusive finance in the country.

Despite notable gains, gaps in access, trust, and equity remain. Only 14% of women report owning a full-service financial account, compared to 56% of men. Mobile phone ownership among women stands at 46%, significantly lower than 82% for men, limiting access to digital financial services.

Geographic disparities also persist. Punjab leads with 40% financial inclusion, followed by Islamabad (38%) and Gilgit-Baltistan (33%). Balochistan (23%) and Azad Jammu & Kashmir (25%) trail behind.

Adoption of the government-backed RAAST payment system has risen sharply. Wallet registrations have more than doubled from 17% to 41% in two years. Users cited speed (77%) and affordability (43%) as key benefits.

Waqasul Hasan, CEO of Karandaaz, said, "As the K-FIS results reveal, there is a persistent and troubling gender divide. Today, 56% of adult men in Pakistan have a registered financial account, compared to just 14% of women." He added, "Karandaaz envisions a Pakistan where these divides no longer exist and where every individual, regardless of gender, has the tools to participate fully in the formal economy. Inclusion is not a one-time achievement, but is a continuous journey, and data must guide us."

Despite this progress, formal financial services remain underutilised. A striking 85% of adults continue to rely on informal sources — mainly family and friends — for credit. Meanwhile, trust remains a critical barrier: only 9% of excluded adults say they trust banks and just 8% trust mobile money providers.