Latest news with #KarandaazPakistan
Business Recorder
05-07-2025
- Business
- Business Recorder
Bridging the financial gap: insights from Karandaaz Financial Inclusion Survey (K-FIS)—I
While health and education have traditionally dominated the human development and public policy agenda globally, financial inclusion has increasingly emerged as a critical development goal over the past decade and a half. The rationale is straightforward: by integrating the underbanked, underserved, and financially excluded populations into the formal financial system, economies can become more resilient and inclusive. Access to financial services – such as bank accounts, credit, savings, and insurance – empowers individuals and simultaneously expands the formal economy, enhancing government capacity to raise revenue and deliver essential public goods and services. In Pakistan, financial inclusion remains low when measured as the percentage of working-age individuals (15+) who own a bank account. According to the Karandaaz Financial Inclusion Survey (K-FIS) 2024, only 35 percent of Pakistani adults are financially included. Although this marks a 3.5-fold increase since the World Bank's inaugural Findex Survey in 2011, when the figure stood at 10 percent, Pakistan still trails its regional peers. As of 2021, financial inclusion stood at 77.5 percent in India, 54 percent in Nepal, 89.3 percent in Sri Lanka, and 52.8 percent in Bangladesh. The South Asian average was 67.9 percent. Digging deeper into the 2024 K-FIS findings reveals significant disparities within Pakistani society. One of the most glaring is the gender gap. Only 14 percent of women are financially included, compared to 56 percent of men. While limited financial literacy plays a role (as confirmed by the data), deeper structural factors also contribute. Women's limited agency in household decision-making is a critical issue: only 11 percent of women report having a say in financial matters, whether it's saving, purchasing assets like livestock, or deciding on household consumption. Digital literacy is another barrier, with men scoring 65 versus women's 48 on self-reported ability to use mobile phones, send texts, and navigate social media platforms. The survey underscores that financial exclusion for women is not just a matter of access, but also of societal norms and intra-household dynamics. Ali Akbar Ghanghro (Senior Manager Research & Insights, Karandaaz Pakistan) Copyright Business Recorder, 2025
Business Recorder
19-06-2025
- Business
- Business Recorder
Karandaaz Financial Inclusion Survey released
KARACHI: Karandaaz Pakistan has released the 2024 edition of the Karandaaz Financial Inclusion Survey (K-FIS), marking a decade of demand-side financial data and providing a powerful roadmap for advancing inclusive finance in Pakistan. K-FIS continues to be the only nationally representative demand side survey that captures people's real financial experiences across gender, geography, and income segments. The 2024 findings reveal a significant leap in financial inclusion, which has increased fourfold, from just 8 percent in 2013 to 35 percent in 2024. This growth is primarily driven by the rise of mobile money, now used by 30 percent of adults, up from less than 1 percent ten years ago. While this progress is encouraging, the report highlights persistent gaps in usage, trust, and equity. Only 14 percent of women report owning a full-service financial account, compared to 56 percent of men. Women's access to mobile phones also remains limited, with only 46 percent ownership compared to 82 percent for men, limiting their ability to avail digital financial services. Geographic disparities persist as well. Punjab (40 percent), Islamabad (38 percent), and Gilgit-Baltistan (33 percent) have made significant strides in inclusion, whereas Balochistan (23 percent) and Azad Jammu & Kashmir (25 percent) continue to lag behind. The adoption of the government-backed RAAST payment system shows promise, with wallet registrations more than doubling from 17 percent to 41 percent in the last two years. Users cited speed (77 percent) and affordability (43 percent) as the main advantages. Addressing the webinar for the launchof report, Waqas ul Hasan, CEO Karandaaz, has said as the K-FIS results reveal, there is a persistent and troubling gender divide. 'Today, 56 percent of adult men in Pakistan have a registered financial account, compared to just 14 percent of women,' he added. He said that 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. 'We believe that inclusion is not a one-time achievement, but a continuous journey, and that data, like the one we share today, must guide us,' he added. Despite this progress, formal financial services remain underutilised. A striking 85 percent of adults continue to rely on informal sources — mainly family and friends—for credit. Meanwhile, trust remains a critical barrier: only 9 percent of excluded adults say they trust banks, and just 8 percent trust mobile money providers. Only 36 percent feel comfortable using any financial service. During the keynote address, Syed Samar Hasnain, Executive Director Digital Financial Services, State Bank of Pakistan (SBP), stressed on the significance of demand-side surveys, commenting, datasets are collected regularly on the supply side, from the perspective of financial institutions. However, data collection efforts on the demand side, from the perspective of households and individuals, are limited. Nonetheless, individual level surveys are essential to get invaluable insights regarding financial behavior, he added. The webinar for the launch also featured two important panel discussions. The first one, titled 'From Growth to Gaps – Who's Included, Who's Left Behind: The Next Horizon in Financial Inclusion?,' was moderated by Stephen Rasmussen, former CEO of CGAP, with an expert panel consisting of Jahanzeb Khan, CEO, easypaisa Digital Bank; Mehr Shah, Head of Research, Raqami Islamic Digital Bank; and Umair Ahmad, Senior Joint Director, Agricultural Credit & Financial Inclusion Department, State Bank of Pakistan. The second panel, titled 'Closing the Gender Gap in Financial Inclusion and Building Financial Resilience within Communities,' was moderated by Ali Akbar Ghanghro, Senior Manager, Research & Insights, Karandaaz Pakistan. The panel featured Patrick Reily, Founding Partner, Uplinq Technologies; Hussam Razi, Associate Director, Innovations for Poverty Action; Halima Iqbal, CEO, Oraan; and Nageen Akhtar, Head of Innovation, Bank Alfalah. Copyright Business Recorder, 2025
Express Tribune
19-06-2025
- Business
- Express Tribune
Financial inclusion surges, gaps persist
Listen to article 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.
Business Recorder
26-05-2025
- Business
- Business Recorder
Aurangzeb says budget to exhibit ‘bold initiatives'
ISLAMABAD: The federal government is preparing to introduce bold measures in the upcoming budget with a focus on strategic direction, Finance Minister Muhammad Aurangzeb said Monday. While addressing an event organised by Karandaaz Pakistan and Pakistan Banks Association (PBA) here, the finance minister said that budget is not just about revenue and expenditure, it has to provide the strategic direction of where the economy is, and where it is heading. He added that rather than making the math work, the government intends to make the budget document more strategic. Govt to introduce 'bold measures' in the upcoming budget, says Aurangzeb The federal budget for FY2025-26 will be presented on June 10, 2025. Meanwhile, the Pakistan Economic Survey 2024-25 will be released on June 9, 2025. Talking about the recent escalation of tensions between Pakistan and India, Aurangzeb said that these are very tense moments. The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against the aggression. Aurangzeb shared that efforts were made to derail Pakistan's engagement with the International Monetary Fund (IMF). He said, there was no stone left unturned in terms of ensuring that the meeting with the IMF does not happen. If the meeting does happen, then these items are not on the agenda, whether it is the second tranche under the Extended Fund Facility (EFF) and the $1.3 billion under the Resilience and Sustainability Facility (RSF). However, we are beyond that, and our case was discussed and decided on merit. He said the unity shown by the nation against recent aggression is the same unity needed on the economic front. On macroeconomic stability, Aurangzeb emphasised the need to avoid repeating past mistakes. He said that we have achieved macroeconomic stability in yesteryears and in the previous decades as well, but we have squandered the opportunity. Because it is easy to get into a sugar rush, i.e. pump liquidity into the market, go for consumption-led growth, which triggers balance of payment and FX issues. He said that to break away from the boom and bust cycle, Pakistan needs to stay the course in terms of structural reforms. Aurangzeb shared that the government remains committed to simplifying the tax return filing process for the salaried class. '70-80 per cent of the salaried class do not necessarily hold equity or income portfolios, why should they fill 140-150 measures? 'We are trying to bring it down to nine items, five on the wealth and four on the income tax side.' He said the government wants to implement the simplified process by the end of September. On the SoE reforms, the finance minister admitted that this is one area where we did not do well last year. He said that the government remains committed to accelerating reforms in this sector. He confirmed the PIA transaction has been relaunched and expressed optimism about its completion. On debt servicing, Aurangzeb said in the ongoing fiscal the government debt servicing cost has decreased by Rs1 trillion. 'Next year, we are going to restructure/reorganize our debt management office along the modern lines,' he said. The finance minister was of the view that the ongoing structural reforms would put Pakistan's economy 'on a path of sustainable growth'. Aurangzeb expressed optimism about Pakistan's long-term economic trajectory. Our economy has crossed the $400 billion level. This shows we are moving in the right direction but to become a $3 trillion economy by 2047, we need to mitigate two existential issues, i.e. population and climate. He said four out of the six points under the 10-year Country Partnership Framework inked with the World Bank deal with climate and population. Speaking about the importance of the initiative, Syed Salim Raza, chairperson Karandaaz, said: 'Karandaaz is proud to support Pakistan's financial sector as it transitions toward purpose-driven finance. This training is part of our broader commitment to building the institutional capacity required to align with global investment standards and deliver measurable development outcomes. By strengthening local capabilities in impact measurement and sustainable finance, we are laying the foundation for a more inclusive and resilient financial system.' Addressing the participants, Director Development BHC Islamabad Jo Moir stated, 'This training underscores BHC's long-term engagement with Pakistan's financial sector. A decade ago, we supported the creation of Karandaaz as a special purpose impact finance vehicle. Today, it serves as a lighthouse for the sector, demonstrating scalable models for inclusive and sustainable finance.' The workshop is being led by Alex MacGillivray, executive director at the JIM Foundation and a globally recognised expert in impact measurement. With a career spanning development finance institutions and advisory work international impact investors, MacGillivray has delivered a highly practical curriculum that blended theory with real-world applications. 'The idea was to move beyond traditional credit models and introduce a more purposeful financing approach, one that drives measurable outcomes alongside financial returns,' said MacGillivray. 'With the right institutional momentum and leadership, Pakistan can play a key role in the global impact investing movement.' The training is covering a comprehensive range of topics, including strategic intent, impact governance, portfolio-level impact design, impact at exit and independent validation. Participants are engaging in interactive case studies, peer learning sessions, and scenario-based exercises aimed at translating concepts into actionable strategies. Articulating the sector's commitment to sustainable finance, Muneer Kamal, CEO and Secretary General PBA, said, 'Pakistan's banking sector must lead from the front as we transition towards a more sustainable and impact-driven financial ecosystem. This partnership with MoF and Karandaaz reflects PBA's commitment to strengthening sectoral readiness and aligning capital with long-term national priorities.' This training reinforces the commitment by MoF, Karandaaz and PBA's ongoing efforts to strengthen institutional capabilities in Pakistan's financial sector and support the country's transition toward sustainable, impact-oriented finance. As global standards for responsible investing continue to evolve, Karandaaz remains committed to equipping local actors with the tools and knowledge needed to access and manage development capital effectively. Copyright Business Recorder, 2025
Express Tribune
26-05-2025
- Business
- Express Tribune
Servicemen, civilians to get equal pay raise
Finance Minister Muhammad Aurangzeb said on Monday that there was no proposal in the budget to increase salaries of the armed forces more than the civilian government employees and assured that the nation's defence needs would be fully met. In a media interaction after attending a seminar, the finance minister also said that India did not leave any stone unturned to derail Pakistan's $7 billion package but it could not succeed. "There is so far no such proposal" for increasing the defence salaries more than that of the civilian employees, the finance minister said, responding to a question. The statement clears the air after rumours swirled suggesting that the government was considering significant increase in the salaries of the armed forces. The government is considering a proposal to increase salaries in the range of 6% to 10% due to low single digit inflation rate. While responding to another question, Aurangzeb said that whatever support the government could provide for meeting the defence needs would be fully provided. "This is about meeting the needs of the country, not just meeting the needs of the armed forces of Pakistan," he added. The finance minister also talked about malicious Indian designs to choke Pakistan's external financing. "There is immense support by the IMF despite the kind of efforts [India made] to derail the IMF programme," he said and added that had there been shortcomings in the implementation of the programme, there would have been some problems. Pakistan's case was discussed and approved on merit, because it met all the quantitative and structural benchmarks, he said. "These are very tense moments. The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against aggression," he continued. "There was no stone left unturned in terms of ensuring that the meeting with the IMF does not happen and if the meeting does happen, then these items are not on the agenda, whether it's the second tranche under the Extended Fund Facility or the $1.3 billion under the Resilience and Sustainability Facility (RSF)," the minister said. "However, we are beyond that, and our case was discussed and decided on merit." Addressing an event, organized by the Karandaaz Pakistan and the Pakistan Banks Association (PBA) in Islamabad, Aurangzeb said that the federal government was preparing to introduce "bold measures" in the upcoming budget with a focus on strategic direction. "We are going to bring some bold measures during the budget for FY 2025-26," he said. He said that rather than making the math work, the government intended to make the budget document more strategic. The federal budget for FY 2025-26 will be presented on June 10, 2025 and the Economic Survey will be launched a day earlier. To yet another question about the delay in concluding IMF talks, the finance minister said that the IMF talks would continue next week virtually, but the main discussions had already taken place. He said that the government had achieved macroeconomic stability in the past too but "we have squandered" the opportunity. "Because it is easy to get into a sugar rush, ie pump liquidity into the market, go for consumption-led growth," which triggered balance of payment and FX issues, he said. To break away from the boom and bust cycle, Aurangzeb said, Pakistan needed to stay the course in terms of structural reforms. He stressed that the government remained committed to simplifying tax return filing process for the salaried class. He added that 70 to 80% of the salaried class did not necessarily hold equity or income portfolios and they should not be required to fill 150 columns. "We are trying to bring it down to nine items, five on the wealth and four on the income tax side." The minister added that the government wanted to implement a simplified process by the end of September. The finance minister admitted that the government could not perform well on the state-owned enterprises reform in the last year but hoped that the agenda would be expedited in the new fiscal year. He said that the PIA transaction had been launched again and expressed optimism about its completion. On debt servicing, Aurangzeb said that in the ongoing fiscal the government debt servicing cost had decreased by Rs1 trillion but stated that it was not a success, as the reduction was because of reduction in the interest rates. "Next year, we are going to restructure and reorganise the debt management office along modern lines," he said. Aurangzeb termed the country's economy crossing the $400 billion mark as a matter of satisfaction. "Our economy has crossed the $400 billion level. This shows we're moving in the right direction", he added. But he argued that to become a $3 trillion economy by 2047, Pakistan needed to tackle the challenges of 2.6% population growth rate and climate change.
