SECP unveils Women Equality in Finance Policy Framework for NBMFCs

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has unveiled the Women Equality in Finance Policy Framework (WEFP) for Non-Bank Microfinance Companies (NBMFCs), setting a transformative agenda to enhance women’s financial inclusion and strengthen their role in the financial ecosystem.

The policy framework mandates that in next five years 70% of all new clients onboard by the NBFMCs shall be women. To achieve this NBMFCs will be encouraged to develop tailored financial products for women entrepreneurs.

To foster Inclusive Governance the policy requires a minimum of 25% female representation on Boards and also sets incremental workforce inclusivity targets. The policy overall encourages digitization and innovation in the microfinance sector.

With measures such as integrating gender-disaggregated data, training programmes for workforce inclusivity, and the modernization of financial services through digital platforms, WEFP aspires to create a resilient and diverse financial sector that uplifts Pakistan’s economy.

WEFP comes as a response to alarming disparities in financial inclusion: women account for only 13% of formal financial institution account holders in Pakistan compared to 34% of men. Additionally, between 2018 and 2024, the share of female borrowers in the microfinance sector dropped from 54% to 46%, despite women demonstrating superior repayment behaviours. This data highlights the urgent need for targeted interventions to reverse these trends.

Copyright Business Recorder, 2024