Indicators: IMF survey reveals Pakistanis’ financial access limited
Did you know that the average number of deposit accounts with commercial banks per 1,000 Pakistanis is only 316 as opposed to the average of almost 1,200 accounts per 1,000 Indians?
Were you aware that as many as 147 out of every 1,000 Indians maintain a loan account with a commercial bank compared to an average of only 28 people per 1,000 Pakistanis?
The International Monetary Fund (IMF) released on Tuesday the fifth tranche of its annual Financial Access Survey (FAS), which determines the level of financial inclusion in as many as 189 economies of the world.
The FAS database contains 47 key indicators that are grouped into two major groups: geographic outreach of financial services and the use of financial services. The database covers a 10-year period (2004–2013).
According to the IMF, FAS findings offer a strong quantitative underpinning to the theoretical literature that links financial inclusion with overall economic growth.
“The positive correlation between the increase in the use of commercial banks services – a measure of financial inclusion –and the increase in the GDP per capita– a measure of economic growth – is especially noteworthy when comparing financial inclusion trends,” the IMF said in its report.
The Express Tribune has arranged a wide range of Pakistan-specific data from the FAS. Following are the main indicators to help our readers understand major trends in Pakistan’s economy.
Published in The Express Tribune, September 18th, 2014.
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@vasan: Have you read the banking stats of China or just shooting in the dark given the image of China being more progressive than India . This article is about the usage/ accessibility of bank accounts and credit extended in nation building and Singapore by all reckoning is a financial success. Nobody is touting culture , education levels in the article as without even the same education farmers are using mobile phone technology to get access to market info. The simple point is this is an article about Pak banking system and there is no need for such an enlightened forecast about what Modi would do . After all did not the same BJP / Modi ruin the chances of direct subsidy transfer through Aadhar under UPA ? The next time you visit a foreign website , stay current on the topic instead of bleating about Modi. Afterall , we have enough websites in Indian media that you can use to type in your Modi Namah!
Talking Point : I dont know whether you have read this article or not. The entire article is comparing India and Pakistan. If Pakistan wants to improve it should bench mark against India which is what most analysts are doing and if possible follow India's foot steps. Pakistan's bench marking against India is correct because both are poor, illiterate and have been ruled by corrupt politicians who swindled their respective countries, both are of the same age and both have been swindled by the Brits for a long time. Comparison with Singapore is height of stupidity because if you consider the size of Singapore state, literacy, type of govt etc etc, diversity of population, languages cultures etc etc, India cannot be compared with anyone except may be China. Just the sheer size of the state and population make comparison with Singapore is useless.
@vasan: This is not the time or place to gloat or bleat. India cannot afford to keep looking behind its shoulders at Pakistan to get an ego boost that it has done well. If India wants to progress further , the benchmarks should be Singapore or similar country.
This is also IK's fault.
For any economy to grow,banking is a basic necessity because it keeps on rotating the money, banking is won win situation for everyone.It provides finance for infrastructure and development projects and at same time provides interest and security to depositors.
A) Probably because common person loan is not approved :) in Pakistan B) Probably Loan conditions are more severe that common citizen cannot afford loosing out of one loan payment. C) isn't good that less people have loan than more people? Reason come to mind is interest? D) there could be so many other reasons....
We have also seen right off for loans for resourceful people and etc...
Even India's inclusion is ot adequate and hence the PM is implementing the Jan Dhan Yojana. The criticism is that it is being done too fast, which might lead to duplicates. Certainly that can be addressed but it is better than being very slow.