SECP launches policy framework to enhance women financial inclusion

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) introduced the Women Equality in Finance Policy Framework (WEFP) for Non-Bank Microfinance Companies (NBMFCs), aiming to promote women’s financial inclusion and bolster their participation in the financial sector.

According to the framework, 70% of all new clients enrolled by NBMFCs over the next five years must be women, as stated in a press release. To achieve this, NBMFCs are encouraged to design customized financial products for women entrepreneurs.SECP Engages with Punjab and Sindh Government to Advance “Insured Pakistan” Initiative

The policy emphasizes Inclusive Governance by requiring at least 25% female representation on Boards and setting progressive workforce diversity targets. It also advocates for innovation and digital transformation within the microfinance industry.

Key initiatives include collecting gender-specific data, implementing workforce diversity training, and modernizing financial services through digital platforms. These efforts aim to build a robust and inclusive financial sector that contributes to Pakistan’s economic progress.

The framework addresses significant gender disparities in financial inclusion, noting that women make up only 13% of account holders in formal financial institutions in Pakistan, compared to 34% for men. Additionally, between 2018 and 2024, the proportion of female borrowers in the microfinance sector declined from 54% to 46%, despite evidence showing that women typically exhibit better repayment behaviors.

This data underscores the need for focused actions to reverse these trends. By launching WEFP, SECP reiterates its commitment to promoting gender equity in financial services. The initiative seeks to empower women financially, fostering sustainable economic development, innovation, and resilience across the country.