By ScaleupPakistan.com

Islamabad – A groundbreaking Asian Development Bank (ADB) report has revealed that 59% of Pakistan’s adult population – approximately 100 million people – remain excluded from formal banking services, perpetuating economic inequality and stifling growth. The findings underscore an urgent need for digital financial solutions and rural banking expansion.

Key Findings from ADB Report

1. Alarming Exclusion Rates:

• Only 21% of women have bank accounts (versus 45% of men)
• Rural access at 17% compared to 38% in urban centers

1. Structural Barriers:

• Documentation Hurdles: 62% cite lack of CNIC/birth certificates
• Physical Access: 70% of villages lack bank branches
• Digital Divide: 84% of unbanked own mobile phones but lack fintech literacy

1. Economic Impact:

• Costs Pakistan 1.5% of GDP annually in lost productivity
• Forces 89% SMEs to rely on informal lenders charging 22-35% interest

ADB’s Policy Recommendations

✔ Mobile Banking Revolution: Leverage Pakistan’s 187 million mobile users through:

• Simplified apps with Urdu/Pashto/Sindhi interfaces
• USSD codes for feature phones (no internet required)

✔ Rural Last-Mile Solutions:

• Postal banking partnerships (utilizing 13,000+ post offices)
• “Bank-on-Wheels” programs for remote areas

✔ Regulatory Reforms:

• Alternative KYC using biometric verification
• Tax incentives for banks opening rural branches

Case Study: Success in Peer Nations

• Bangladesh: Achieved 50% inclusion via bKash mobile money
• India: Jan Dhan Yojana added 500 million accounts in 5 years
• Kenya: M-Pesa serves 80% households without traditional banks

Government & SBP Response

• State Bank’s Target: 65% inclusion by 2028 through Raast instant payments
• Federal Plan: Proposed Rs. 45 billion for rural digital hubs
• Challenge: Only 11% of current accounts are active users

Why This Matters:

• Connects financial access to gender equality and poverty reduction
• Highlights achievable solutions from comparable economies
• Holds policymakers accountable to measurable targets

Next Reporting Angles:

• Profile of fintech startups bridging the gap (Sadapay, Nayapay)
• Investigation into why 89% of accounts go dormant
• Follow-up on SBP’s Raast adoption metrics