In a development with far-reaching implications for Pakistan, the State Bank of Pakistan has officially adopted the Women Entrepreneurs (WE) Finance Code, an Asian Development Bank (ADB) initiative aimed at closing the gender financing gap. Backed by a USD 500 million financing commitment to the Government of Pakistan, this move holds immense potential to transform the country’s economic trajectory by enabling women-led businesses to scale sustainably.

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........

© Business Recorder