SECP launches women equality in finance policy

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has launched a women equality in finance policy (WEFP) for non-bank microfinance companies (NBMFCs).

This policy framework aims to significantly enhance women’s financial inclusion and empower them within the financial ecosystem.A key directive mandates that within the next five years, 70 per cent of all new clients onboarded by NBFMCs must be women. To achieve this ambitious target, NBFMCs will be encouraged to develop and offer tailored financial products specifically designed for women entrepreneurs.

WEFP stressed on inclusive governance. It requires a minimum of 25 per cent female representation on the boards of NBFMCs and sets incremental targets for workforce inclusivity across all levels. The policy also strongly encourages digitisation and innovation within the microfinance sector.

The policy framework addresses the alarming gap in women’s financial inclusion. Currently, only 13 per cent of women in Pakistan have accounts with formal financial institutions, compared to 34 per cent of men. Moreover, the share of female borrowers in the microfinance sector has declined from 54 per cent to 46 per cent between 2018 and 2024, despite women demonstrating superior repayment behaviour.

By integrating gender-disaggregated data, implementing comprehensive training programmes for workforce inclusivity, and modernising financial services through digital platforms, WEFP aims to create a more resilient and diverse financial sector that contributes to Pakistan’s economic growth and development.

The SECP’s WEFP reaffirms the commission’s commitment to advancing gender equity in the financial services sector. By empowering women financially, the framework aims to drive sustainable economic growth, foster innovation and enhance the overall resilience of the Pakistani economy.