Financing a women-led future
The gender finance gap in Pakistan is structural and continues to hamper equitable economic progress. Despite making up nearly half the population, only 14 percent of women have access to formal financial services. Many operate in informal sectors, unbanked and unsupported, with limited protection or opportunity. Conventional lending systems, reliant on collateral, have long ignored the realities of small, often home-based, women-run businesses.
A study by PIDE highlights that up to 78 percent of female employment lies in the informal sector. And while women represent around 8 percent of Pakistan's MSMEs, they receive less than 5 percent of formal credit. Yet data, both global and our own, proves what we at Mobilink Bank have always known: women are responsible borrowers. Women-led MSMEs in our portfolio show lower default rates and higher digital engagement, making a strong case for mainstreaming gender finance.
Fintech is part of the solution. Platforms like JazzCash are helping bridge the gap, but the digital divide remains real. Women in Pakistan are 38 percent less likely to own a smartphone, a gap rooted in affordability, access, and deep-seated social norms. That directly limits access to digital wallets, mobile banking, and tools that could bring financial inclusion to their fingertips.
Still, these challenges are not insurmountable. With community-based, data-driven approaches, we've seen how empathy and innovation unlock extraordinary potential. Mobilink Bank has financed over 79,000 women-led businesses and digitally onboarded thousands more through user-friendly solutions tailored for their needs. But scaling access isn't enough; we must also invest in transformation.
That's why we are focusing on building financial literacy and entrepreneurial capability. So far, over 25,000 women across Pakistan have received financial literacy training through Mobilink Bank. We've also launched Pakistan's first women-centric incubator within the microfinance industry to nurture scalable, formal women-led enterprises, marking a critical move toward systemic change. The programme's first cohort graduated 13 high-potential women-led startups, with the second cohort ongoing, incubating 20+ entrepreneurial ventures.
Together with JazzCash, we're building both digital and physical pathways to inclusion. Women comprise 32 percent of our 52 million customers, nearly 25 percent of our 8 million active borrowers, and 10 percent of our 400,000+ merchants. We're proud that 25 percent of our 150,000 daily nano-loans serve women customers, showcasing real impact, at scale.
It won't be fair to evaluate microfinance solely through the lens of profitability, as its true success lies in its impact on social indicators. For instance, in Pakistan 60 percent of all agricultural lending is facilitated by the microfinance sector, and nearly half of all mortgages in the country are underwritten by it. Through widespread digitization and nano-lending, the industry has created sustainable socioeconomic value. This is despite the fact that our industry is not only significantly younger but also individually smaller than any of the top five banks.
Mobilink Bank leads the microfinance industry, holding over 17 percent of total assets and net advances in the sector, valued at Rs. 183 billion and Rs. 79 billion, respectively. We look forward to carrying this momentum onto our engagement with We Finance Code, which offers a strategic framework for Pakistan's financial transformation. It is an opportunity not only to align with global best practices, but also to institutionalize long-overdue change. We must also elevate the narrative. National campaigns spotlighting successful women entrepreneurs, demystifying finance, and challenging prevailing stereotypes are vital to inspiring the next generation of female founders.
Copyright Business Recorder, 2025
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