SECP Unveils New Policy to Boost Women’s Financial Inclusion

The Securities and Exchange Commission of Pakistan (SECP) has announced the introduction of the Women Equality in Finance Policy Framework (WEFP) aimed at increasing women’s participation in the financial sector. The initiative, which focuses on Non-Bank Microfinance Companies (NBMFCs), sets ambitious goals to foster greater financial inclusion for women and improve their role in Pakistan’s economy.

According to the policy, 70% of all new clients onboarded by NBMFCs in the next five years must be women. To support this, the framework encourages the development of financial products tailored to women entrepreneurs, making it easier for them to access necessary capital.

Key Provisions of the WEFP:

• Board Representation: The policy mandates that women make up at least 25% of the boards of NBMFCs, ensuring gender diversity in decision-making roles.
• Workforce Inclusion Targets: A series of targets will be set to increase female representation across the workforce in the microfinance sector.
• Digitization and Innovation: The policy calls for the modernization of financial services through digital platforms, as well as the integration of gender-specific data to better address women’s financial needs.

The framework is a response to the current gender gap in financial inclusion, with women holding only 13% of formal financial accounts in Pakistan, compared to 34% of men. Moreover, the share of female borrowers in the microfinance sector has fallen from 54% in 2018 to 46% in 2024, despite women demonstrating better repayment behavior.