SBP Governor shares developments in financial inclusion with Queen Maxima

Queen Maxima of the Netherlands called on Dr Reza Baqir in Islamabad.

(APP) – State Bank of Pakistan (SBP) Governor Dr Reza Baqir on Tuesday shared developments in financial inclusion and roadmap with special focus on gender mainstreaming with Queen Maxima of the Netherlands in her role as the United Nations, Secretary General’s Special Advocate (UNSGSA) for Inclusive Finance for Development.

Queen Maxima of the Netherlands called on Dr Reza Baqir in Islamabad, a statement issued by the SBP read.

Mr Baqir described method how the inclusive financial technology (fintech) and digital finance represents a great opportunity to improve people’s financial lives, while terming it “important to consider and mitigate risks associated with it.”

At the outset of the meeting, the governor highlighted SBP’s initiatives, commitment and achievements for increasing financial inclusion under National Financial Inclusion Strategy (NFIS) 2023.

The governor also shared with the UNSGSA, the high impact development initiatives including gender mainstreaming in financial inclusion, creation of innovation office within the central bank, establishment of Micro Payment Gateway (MPG) and regulatory framework for Fintechs.

He said the SBP, being mindful of the rising gender gap in access and usage of financial services in Pakistan, has decided to launch a policy to reduce the gender gap in financial inclusion.

Accordingly, he presented the draft policy on gender mainstreaming to the UNSGSA, which aims to introduce a gender lens within the financial sector through identified pillars and specific measures.

Mr Baqir deliberated that the SBP was exploring ways to encourage innovation for financial inclusion through fintech by creating an innovation office at the SBP.

He appreciated the UNSGSA for the efforts to promote financial inclusion globally and invited her to share her views on both the SBP initiatives of policy for reducing gender gap in financial inclusion and the innovation office.

Speaking on the occasion, UNSGSA Queen Maxima remarked that she was very happy to return to Pakistan and valued the discussion with state bank on financial inclusion. She appreciated the progress made by the SBP and Pakistan with respect to financial inclusion while focusing on gender mainstreaming and digital financial services.

“Pakistan is in good position for boost in technology-enabled financial inclusion and in the last five years, Pakistan’s start-up tech and fintech ecosystems have made some notable progress with improving their supporting networks.”

The Queen Maxima mentioned that it could be helpful to establish a pro-poor gateway for the wider acceptance of micropayment methods, introducing consumers to micropayments on a large scale. She appreciated steps taken by the SBP to create a micropayment gateway in 2020.

She added that while resolving technical issues are important, “it is more challenging to encourage people in engaging with digital modes of payment.”

The SBP governor and the UNSGSA agreed to continue sharing ideas and follow up on agreed tasks for promoting financial inclusion.

The governor thanked the UNSGSA, Queen Maxima for personal commitment and pushing forward the agenda of financial inclusion as a means for achieving inclusive development.