The Determinants of Financial Inclusion in Pakistan

  • Yaqoob Ahmad Finance Department, Government of Khyber Pakhtunkhwa, KPK, Pakistan.
  • Samina Rooh Department of Management Sciences, University of Buner, KPK, Pakistan.
Keywords: Financial Inclusion, Financial Institution, Pakistan


Financial inclusion is now commonly recognized as a vital ingredient for poverty reduction and improved prosperity. Adults in the world's poorest homes, on the other side, remain unbanked in increasing quantities. The characteristics that influence financial inclusion in Pakistan are examined in this article. The study has taken use of the World Bank's Global Findex database from 2017. Gender, education, age, and income are all significant factors that influence financial inclusion in Pakistan, according to the findings of this study. According to the findings, a person who is richer, better educated, and older supports financial inclusion and has a greater influence on education and income, based on Probit forecasts. Mobile banking follows the same procedure as traditional banking. The determinants of informal finance differ from those of formal finance. The government should create rules encouraging financial service providers to locate their facilities closer to users or to adopt technology that makes financial services more accessible, such as agency and mobile banking.