SECP Unveils Framework to Boost Women’s Role in Finance
— December 11, 2024
ISLAMABAD (AIA) The Securities and Exchange Commission of Pakistan (SECP) on Wednesday introduced the Women Equality in Finance Policy Framework (WEFP) for Non-Bank Microfinance Companies (NBMFCs), aimed at enhancing women’s financial inclusion and fostering their role in the financial ecosystem.The policy sets ambitious targets, mandating that by 2029, 70% of all new clients onboarded by NBMFCs must be women. To achieve this, NBMFCs are encouraged to develop tailored financial products for women entrepreneurs.The WEFP also advocates for inclusive governance, requiring a minimum of 25% female representation on boards and establishing incremental workforce inclusivity targets. Additionally, the framework promotes digitisation and innovation in the microfinance sector, including integrating gender-disaggregated data, workforce training programs, and modernising financial services through digital platforms.The need for the framework is underscored by stark disparities in financial inclusion. Women currently make up only 13% of formal financial institution account holders in Pakistan, compared to 34% of men. Moreover, the share of female borrowers in the microfinance sector fell from 54% in 2018 to 46% in 2024, despite women demonstrating better repayment behaviours.