ISLAMABAD: At the launch of a report on financial inclusion for women entrepreneurs, speakers emphasised the urgent need to improve financial literacy and awareness among women in Pakistan.
The event, organised by the Sustainable Development Policy Institute (SDPI) in collaboration with the Friedrich Naumann Foundation (FNF), highlighted the challenges women entrepreneurs faced and called for an end to the biases and barriers that hinder their growth in the business sector.
Dr Vaqar Ahmed, Joint Executive Director of SDPI, opened the discussion by explaining that the report, “Advancing financial inclusion for women entrepreneurs in Pakistan,” was the third in a series of research efforts with FNF focused on financial inclusion. He noted that while the report specifically addressed the challenges faced by women entrepreneurs, there were other key female stakeholders whose inclusion also warranted deeper investigation. He stressed the direct correlation between women’s financial inclusion and household financial literacy, underscoring the importance of this research.
Dr Vaqar pointed out that issues related to credit, taxation and regulatory hurdles were well-known obstacles that needed to be addressed within a broader political and economic context. He called for a focus on actionable outcomes based on the report’s recommendations, suggesting that a roadmap should be offered to various stakeholders, including the government, private sector, business associations and financial institutions. He also emphasised the need for innovative approaches from the private sector, as not all aspects of financial inclusion could be managed by the government alone.
Report launched on advancing financial inclusion for women entrepreneurs in Pakistan
Birgit Lamm, FNF country head, highlighted the significance of the report in providing a policy framework to support entrepreneurship among marginalised groups, particularly women. She noted that while FNF had supported micro-level entrepreneurship, financial challenges such as capital management during the first five years of business remained significant risks for women globally. She also pointed out societal biases and the lack of necessary documentation, such as CNICs, that made it difficult for women to secure support for their startups.
Faeyza Khan, head of Inclusive Finance at TANGENT and adjunct faculty at SDPI, presented the study’s methodology, which involved consultations with key stakeholders such as the Securities and Exchange Commission of Pakistan (SECP), women’s chambers of commerce and major banks. Faeyza Khan said despite a global opportunity worth $28 trillion in women’s economic inclusion, women in Pakistan remained severely underrepresented, comprising only 22pc of the labour force.
The report said women-owned SMEs constituted just one per cent of the 5.3 million SMEs in Pakistan, far below the percentages in neighbouring countries like India and Bangladesh. Faeyza Khan stressed the need to raise awareness about the positive impact of women’s entrepreneurship, improve connectivity and establish robust frameworks for measuring progress.
Gulalai Khan from the Revenue Mobilisation, Investment and Trade (ReMIT) Programme, Murium Hadi from the Asian Development Bank and Salman Shahzad from the National Institute of Banking and Finance (NIBAF), echoed the challenges women faced in starting and sustaining businesses. They underscored the need for better policy support, improved financial literacy and innovative financial products tailored to women’s needs. The event concluded with a call for systemic change to foster an environment where women entrepreneurs could thrive.
Published in Dawn, August 25th, 2024
