KARACHI: Pakistan’s financial inclusion rate has risen to 67% in 2025 from 47% in 2018, the top central bank official said on Thursday, crediting digital innovation and policy reforms for expanding access to financial services.

The rise comes as the government and the State Bank of Pakistan (SBP) have stepped up efforts to strengthen microfinance and digital banking amid a period of relative macroeconomic stability. Officials have also urged the public to use formal banking channels and digital platforms to help build resilience in the financial system.

“Governor Jameel Ahmad highlighted that the financial inclusion rose from 47% in 2018 to 67% in June 2025 while the gender gap in financial access narrowed from 47% to 30% over the same period,” the central bank said in a statement issued after his speech to the ninth Annual Microfinance Conference in Karachi.

“Governor Ahmad assured that the State Bank remains fully committed to working alongside the microfinance industry to strengthen resilience, safeguard customers and expand outreach,” it added.

The top SBP official told the conference that Pakistan’s economic recovery was gathering pace after tough policy measures helped stabilize inflation and foreign exchange reserves. He said inflation had declined sharply and was expected to stay within the government’s 5-7% target range over the medium term.

Ahmed also noted that foreign exchange reserves were now five times higher than in February 2023, reflecting “strategic interbank purchases” that helped the government meet debt repayments without excessive borrowing.

He outlined new principle-based regulations for microfinance banks, allowing greater flexibility and higher lending limits of up to Rs5 million ($17,500) for agriculture, microenterprise and housing loans, and Rs500,000 ($1,750) for general loans.

Ahmad urged microfinance institutions to adopt stronger risk management, enhance liquidity buffers, and use digital tools for credit scoring to prevent fraud and maintain sustainability.

“Together, we can ensure that microfinance continues to play its vital role in fostering inclusive, resilient, and sustainable growth,” he said.