Pakistan’s financial inclusion numbers are the worst in the region for both males and females. According to the latest data, about 8 out of 10 women in Pakistan do not have access to a bank account.

Given the relatively low rate of digital adoption, this means one of two things: women carry cards in the names of their male relatives, so all their expenses are open to scrutiny, or all their dealings are in cash, meaning they are dependent on ‘pocket money’ or ‘allowance’. In both cases, women do not have autonomy.

But why does it matter?

In simplest terms, financial inclusion means access to money with the right to spend it as the holder sees fit. Many males will guffaw at the statement, imagining women holding bags of branded clothing while strolling through malls for their next purchase. This is not what is meant by financial inclusion.

Women’s financial inclusion can be understood through social and economic dimensions. Regarding social impact, access to finance has been linked to women’s empowerment by allowing them to create economic opportunities for themselves. In turn, this enhances the welfare of families since women tend to spend disproportionately more on the education and health of their children.

Be it grocery shopping or eating leftovers, women tend to prioritise family members, especially children, over themselves. When women are financially empowered, their families benefit.

The economic rationale for women’s financial inclusion rests on the untapped potential contribution women can make to the economy. Expanding credit to women-owned businesses can help such businesses grow, bringing the savings of such entities into the formal net.

It is a cycle. Women’s low participation rate is because of inadequate financial inclusion, and without access to financing and employment opportunities, females cannot be economically productive. This perpetuates gender inequality, and Pakistan remains stuck in its regressive patriarchal society.

Published in Dawn, The Business and Finance Weekly, December 26th, 2022