The State Bank of Pakistan (SBP) has introduced a new benchmark for the nation”s financial landscape, revealing an overall financial inclusion level of 58.1 for the year 2024 through its newly launched Pakistan’s Financial Inclusion Index (P-FII). This comprehensive new tool is designed to gauge the state of financial inclusion by assessing the accessibility, utilisation, and standard of available financial services.
According to SBP information on Wednesday, the initiative aligns with a core objective of the central bank, as stipulated in the SBP Act 1956, to enhance financial inclusion. The development of the P-FII is a key component of the broader National Financial Inclusion Strategy (NFIS) 2024-28, which aims to expand financial services nationwide and is part of the SBP”s commitment to data-driven policy formulation.
The P-FII provides a detailed assessment by employing sixty-nine distinct indicators that cover services from banks and other financial institutions. These metrics evaluate financial sector infrastructure, the adoption of financial products, and the quality of the services provided, benchmarking each against defined target values set for 2030.
The creation of such an index reflects a growing international trend among central banks to measure the effectiveness and reach of their financial sectors. The SBP initiated the P-FII”s development in 2023, beginning with a research study into methodologies used by other monetary authorities and multilateral organisations, followed by extensive consultations with both domestic and international stakeholders to refine the final framework.