SBP launches new policy to narrow gender gap in financial inclusion

The State Bank of Pakistan (SBP) has launched the second edition of its Banking on Equality Policy, introducing measures to expand women’s access to financial services, promote female entrepreneurship and improve women’s representation in the banking sector.

The Banking on Equality Policy 2026 builds on an earlier initiative introduced in 2021 and focuses on digital banking, women-led businesses, financial literacy and career development for women across the financial industry.

According to the SBP, Pakistan’s gender gap in financial inclusion narrowed from 39% in 2021 to 29% in 2025 following the implementation of the previous policy.

During the same period, banks hired more than 17,500 women, raising the proportion of female employees from 13% to 17%. Banks also established dedicated teams and departments to develop financial products and services tailored to women.

The central bank said the policy’s implementation earned it the Policy Achievement Award for Gender Inclusive Finance 2026 from the Alliance for Financial Inclusion.

The new policy introduces measures to increase women’s representation and retention in financial institutions, expand digital access to banking, support women entrepreneurs and improve the collection and use of gender-disaggregated data.

Under the policy, banks will have targets for women’s recruitment, customer outreach and representation among branchless banking agents. The SBP has also advised banks to introduce childcare facilities for working mothers and establish career progression policies to help women advance into leadership positions.

Focus on digital banking and women-led businesses

The policy seeks to make banking more accessible through targeted digital onboarding campaigns, simplified digital accounts designed for women and wider use of digital payments by women-led businesses.

To increase financing for women-owned and women-led micro, small and medium enterprises, the SBP is encouraging banks to expand lending across key financing segments.

Measures include developing specialized financing products, incorporating gender considerations into credit planning, partnering with financial technology companies and using alternative credit assessment and collateral arrangements to reach women with limited formal credit histories.

The policy also emphasizes financial literacy and entrepreneurship support to help more women participate in the formal financial system.

The SBP plans to monitor implementation through quarterly data reporting, a monitoring and evaluation framework and regular mystery shopping exercises to assess how financial institutions serve women customers.

Target set for 2028

The Banking on Equality Policy 2026 was finalized following consultations with local and international stakeholders. It is designed to support Pakistan’s National Financial Inclusion Strategy, which aims to reduce the gender gap in financial inclusion to 25% by 2028.

The policy will also support the implementation of the World Bank-led Women Entrepreneurship Finance Code initiative.

The SBP said stronger collaboration between the public and private sectors, alongside targeted reforms and improved access to finance, would help create a more inclusive financial system and strengthen women’s contribution to Pakistan’s economic growth.