SBP Launches Pakistan’s Financial Inclusion Index to Measure Access to Financial Services

The State Bank of Pakistan (SBP) has officially launched Pakistan’s Financial Inclusion Index (P-FII), a major new tool designed to measure how well people across the country can access, use, and benefit from financial services. This landmark initiative reflects SBP’s commitment to strengthening financial inclusion, improving policymaking, and supporting inclusive economic growth.

According to the first results released by SBP, Pakistan’s overall financial inclusion score stood at 58.1 in 2024, highlighting both progress made and gaps that still need to be addressed.

What Is Pakistan’s Financial Inclusion Index (P-FII)?

The Pakistan Financial Inclusion Index (P-FII) is a comprehensive measurement framework that evaluates the state of financial inclusion in the country.

Unlike simple access indicators, the P-FII looks at three core dimensions:

• Access to financial services
• Usage of financial products
• Quality of financial services

This makes it one of the most detailed financial inclusion measurement tools introduced in Pakistan so far.

Why Financial Inclusion Matters for Pakistan

Financial inclusion is critical for:

• Economic growth
• Poverty reduction
• Women empowerment
• SME development
• Digital economy expansion

Millions of Pakistanis still operate outside the formal financial system. By improving access to banking and payment services, the country can unlock new economic opportunities and reduce inequality.

Financial Inclusion Score Stands at 58.1

According to SBP, Pakistan’s overall financial inclusion level was 58.1 in 2024.

What This Score Indicates

• Moderate progress in access to financial services
• Growing use of digital payments and banking
• Need for improvement in service quality and outreach

The index provides a baseline that will help track progress in future years.

SBP’s Legal Mandate to Improve Financial Inclusion

Under the SBP Act, 1956, promoting financial inclusion is a core mandate of the central bank.

SBP has been actively working to:

• Expand access to financial services
• Improve usage of banking products
• Strengthen consumer protection

The launch of P-FII directly supports this mandate.

National Financial Inclusion Strategy (NFIS) 2024–28

To achieve its inclusion goals, SBP is implementing the National Financial Inclusion Strategy (NFIS) 2024–28.

Key Objectives of NFIS

• Increase access to bank accounts
• Promote digital payments
• Expand SME and agriculture finance
• Improve financial literacy
• Enhance service quality

The P-FII serves as a monitoring tool for this strategy.

How the P-FII Was Developed

SBP began work on the Financial Inclusion Index in 2023.

Development Process

• Research on global financial inclusion indices
• Review of methodologies used by other central banks
• Benchmarking with international best practices
• Data analysis and modeling

This ensured the index meets global standards.

Indicators Used in the Financial Inclusion Index

The P-FII is based on 69 indicators, making it highly detailed.

Coverage Areas

• Banking services
• Non-banking financial institutions
• Digital payment systems

These indicators capture the breadth and depth of financial inclusion.

Key Parameters Measured by P-FII

The indicators focus on:

1. Financial Sector Infrastructure

• Availability of branches
• ATMs and agents
• Digital payment infrastructure

2. Usage of Financial Services

• Account ownership
• Transaction volumes
• Credit usage

3. Quality of Financial Services

• Consumer protection
• Service reliability
• Transparency

Benchmarked Against 2030 Targets

Each indicator in the P-FII is benchmarked against a defined target value.

Why This Matters

• Targets reflect outcomes SBP aims to achieve by 2030
• Helps policymakers identify gaps
• Supports long-term planning

This makes the index a forward-looking policy tool.

Alignment With International Best Practices

The development of financial inclusion indices is a global trend.

Central banks worldwide use similar tools to:

• Assess inclusivity
• Improve policy effectiveness
• Measure financial outreach

SBP’s P-FII aligns Pakistan with international financial monitoring standards.

Consultations With Local and Global Stakeholders

After initial research, SBP conducted extensive consultations with:

• Domestic financial institutions
• International organizations
• Policy experts

This helped refine the index and ensure accuracy and relevance.

Annual Publication of Financial Inclusion Index

SBP has announced that P-FII results will be published annually.

Benefits of Annual Reporting

• Tracks year-on-year progress
• Enhances transparency
• Supports evidence-based policymaking

A detailed research paper on the index is also available on the SBP website.

How P-FII Helps Policymakers

The Financial Inclusion Index will help policymakers:

• Identify underserved segments
• Design targeted interventions
• Monitor impact of reforms

This ensures data-driven decisions rather than assumptions.

Impact on Banking and Digital Payments

The index highlights the growing importance of:

• Mobile banking
• Branchless banking
• Digital payment platforms

These channels are essential for expanding financial inclusion in rural and remote areas.

Role of Non-Banking Financial Institutions

P-FII also includes non-banking services, such as:

• Microfinance institutions
• Payment service providers
• Fintech platforms

This reflects the diversification of Pakistan’s financial ecosystem.

Financial Inclusion and Women Empowerment

Improved financial inclusion helps:

• Increase women’s participation in the economy
• Promote savings and entrepreneurship
• Enhance household financial security

The index can guide gender-focused policies.

Challenges Highlighted by the Index

While progress has been made, challenges remain:

• Limited access in remote areas
• Low financial literacy
• Quality of service concerns

The P-FII helps identify these structural issues.

Financial Inclusion and Economic Growth

A more inclusive financial system leads to:

• Higher investment
• Better resource allocation
• Stronger economic resilience

SBP sees financial inclusion as a driver of sustainable growth.

What This Means for Pakistan in 2026

As Pakistan moves into 2026, the Financial Inclusion Index will:

• Guide reforms under NFIS
• Support digital economy growth
• Improve financial access nationwide

It sets a clear roadmap for future progress.

Transparency and Accountability Through Data

By publishing P-FII data annually, SBP promotes:

• Transparency
• Accountability
• Public awareness

This strengthens trust in the financial system.

Conclusion

The launch of Pakistan’s Financial Inclusion Index (P-FII) marks a historic step in measuring and improving access to financial services across the country.

With an inclusion score of 58.1, Pakistan has made notable progress but still has room to grow. By aligning with global best practices and linking the index to NFIS 2024–28, SBP has laid the foundation for evidence-based financial policymaking.

As the index is updated annually, it will play a central role in shaping Pakistan’s inclusive, digital, and resilient financial future.

SBP Financial Inclusion Index FAQs – Explained