SBP Introduces Pakistan Financial Inclusion Index. The State Bank of Pakistan (SBP) has taken a landmark step toward strengthening the country’s financial ecosystem by officially launching Pakistan’s Financial Inclusion Index (P-FII). This newly introduced index provides a comprehensive, data-driven assessment of financial inclusion in Pakistan by measuring access to, usage of, and quality of financial services across the country.
The launch of the P-FII reflects SBP’s long-term commitment to inclusive economic growth, evidence-based policymaking, and the expansion of formal financial services to underserved and unbanked segments of society.
What Is Pakistan Financial Inclusion Index (P-FII)?
Pakistan’s Financial Inclusion Index (P-FII) is a composite national index designed to measure how effectively individuals and businesses are included in the formal financial system. Unlike traditional metrics that focus only on bank accounts, the P-FII captures a broader picture by incorporating banking, non-banking, and digital payment services.
The index evaluates financial inclusion through sixty-nine carefully selected indicators, making it one of the most detailed financial inclusion measurement frameworks in the region.
Pakistan Financial Inclusion Score in 2025
According to the inaugural results released by SBP:
- Overall Financial Inclusion Score (2024): 58.1
This score indicates moderate progress, while also highlighting significant room for improvement—particularly in financial usage depth, service quality, and outreach to women, rural populations, and small businesses.
Why Financial Inclusion Is a Core SBP Mandate
Under the SBP Act, 1956, improving financial inclusion is a statutory responsibility of the central bank. Financial inclusion is widely recognized as a key driver of:
- Poverty reduction
- Economic empowerment
- SME growth
- Digital transformation
- Financial stability
By enabling individuals and businesses to access affordable, reliable financial services, SBP aims to foster inclusive and sustainable economic development.
National Financial Inclusion Strategy (NFIS) 2024–28
The launch of the P-FII is closely aligned with SBP’s National Financial Inclusion Strategy (NFIS) 2024–28, a comprehensive roadmap focused on:
- Expanding access to formal financial services
- Improving usage of financial products
- Enhancing service quality and consumer protection
- Promoting digital and branchless banking
- Strengthening financial literacy and awareness
The P-FII serves as a monitoring and evaluation tool under the NFIS framework, enabling SBP to track progress, identify gaps, and design targeted interventions.
Key Dimensions of the P-FII Framework
The Financial Inclusion Index is built around three core dimensions:
1. Access to Financial Services
This dimension measures the availability and reach of financial services, including:
- Bank branches and ATMs
- Branchless banking agents
- Digital payment access points
- Financial sector infrastructure
2. Usage of Financial Products
Usage indicators assess how actively individuals and businesses use financial services, such as:
- Bank accounts and mobile wallets
- Savings and credit products
- Digital payments and remittances
- Insurance and pension schemes
3. Quality of Financial Services
Quality indicators focus on:
- Consumer protection mechanisms
- Transparency and disclosure
- Affordability of services
- Complaint resolution systems
Coverage Across Banking and Non-Banking Sectors
One of the most notable strengths of the P-FII is its broad sectoral coverage. The index includes data from:
- Commercial banks
- Microfinance banks
- Development finance institutions
- Non-bank financial companies
- Payment service providers
- Digital and branchless banking platforms
This ensures a holistic assessment of Pakistan’s evolving financial ecosystem.
Benchmarking Against 2030 Targets
All sixty-nine indicators used in the P-FII are benchmarked against predefined target values, representing SBP’s desired outcomes by 2030. These benchmarks are aligned with:
- International best practices
- Sustainable Development Goals (SDGs)
- Global financial inclusion frameworks
This forward-looking approach allows SBP to measure not only current performance but also progress toward long-term inclusion goals.
International Best Practices and Global Alignment
The development of financial inclusion indices has become a global trend among central banks, particularly in emerging economies. SBP’s P-FII aligns with methodologies used by:
- Other central banks
- Multilateral institutions
- International development organizations
To ensure robustness, SBP initiated the P-FII project in 2023, beginning with an extensive research study reviewing global data standards, index construction methods, and inclusion metrics.
Stakeholder Consultations and Research-Driven Design
Following the initial research phase, SBP conducted extensive consultations with:
- Domestic financial institutions
- Government stakeholders
- International experts and development partners
These consultations helped refine the indicators, validate methodologies, and ensure that the index accurately reflects Pakistan’s financial realities and policy priorities.
Annual Publication and Transparency Commitment
SBP has announced that the P-FII will be published annually, reinforcing transparency and accountability. Regular publication will allow:
- Policymakers to track progress
- Financial institutions to align strategies
- Researchers to analyze trends
- The public to understand inclusion gaps
A detailed technical paper explaining the methodology and findings is already available on the SBP website.
Why the P-FII Matters for Pakistan Economy
The launch of Pakistan’s Financial Inclusion Index is significant because it:
- Provides a clear national benchmark
- Enables data-driven policy decisions
- Identifies underserved regions and groups
- Supports digital financial transformation
- Strengthens financial sector governance
Over time, the P-FII is expected to play a central role in shaping inclusive finance policies and accelerating economic participation.
FAQs
What is Pakistan’s Financial Inclusion Index (P-FII)?
P-FII is a composite index launched by SBP to measure access, usage, and quality of financial services across Pakistan.
What is Pakistan’s financial inclusion score in 2024?
The overall financial inclusion score stands at 58.1 for the year 2024.
How many indicators are used in the P-FII?
The index is based on sixty-nine indicators covering banking, non-banking, and payment services.
How often will SBP publish the P-FII?
SBP plans to publish the Financial Inclusion Index annually.
What is the link between P-FII and NFIS 2024–28?
The P-FII serves as a monitoring and evaluation tool under the National Financial Inclusion Strategy 2024–28.
Conclusion
The launch of Pakistan’s Financial Inclusion Index (P-FII) marks a transformative step in the country’s journey toward inclusive and sustainable economic growth. By adopting a comprehensive, evidence-based approach, the State Bank of Pakistan has laid the foundation for more effective policymaking, better financial access, and improved service quality across the financial sector.
