In Pakistan, a startling reality persists: only 3% of women receive their rightful inheritance, while a staggering 97% are denied their legal share. Whether in rural, remote, or urban areas, many women do not receive what is rightfully theirs, with cultural and social barriers deeply ingrained. Even within progressive circles, women often forgo their inheritance after marriage, highlighting the systemic challenges that continue to exist.
This issue is not merely a matter of personal loss but a broader failure of social justice, contributing to the already low levels of women’s financial independence in the country. Addressing this imbalance is crucial for the empowerment of women and the country’s overall development.
Haaris Mahmood Chaudhary, the Interim CEO of Mobilink Bank, stresses the importance of women in Pakistan’s economic progress, though their contributions remain largely unrecognized and unsupported, particularly when it comes to inheritance and access to financial services. To combat this, Mobilink Bank has introduced a groundbreaking tool, the Inheritance Calculator, via its Dost App. This innovative digital tool allows women to easily calculate their inheritance share, promoting financial awareness and inclusion. “With this industry-first Inheritance Calculator, we are fostering a greater understanding of financial rights and inclusion,” said Haaris. He emphasized the bank’s long-term commitment to providing accessible financial resources to women, ensuring they are equipped to make informed decisions.
Financial inclusion is key to bridging the gender and financial divide, particularly in developing nations. However, the situation in Pakistan is alarming, with less than 14% of women holding bank accounts due to various socio-economic hurdles.
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According to Haaris, a lack of financial literacy among women also contributes to their low representation in the formal financial sector. The cultural barriers women face, particularly in semi-urban areas, prevent them from claiming their rightful inheritance. Overcoming this challenge requires a multifaceted approach, including expanded access to financial education, targeted financial services, and supportive policies to empower women.
Harris also pointed out the societal pressures women face to forgo their inheritance in favour of male family members, a practice that diminishes their economic independence. This not only affects individual women but also has far-reaching socio-economic consequences. Women make up 49% of Pakistan’s population and play an essential role in driving sectors like Micro, Small, and Medium Enterprises (MSMEs) and agriculture. Yet, due to cultural barriers and limited financial literacy, their full economic participation remains unrealized. Overcoming these challenges is vital for unlocking their potential and fostering inclusive growth.
Haaris advocates for a comprehensive strategy to enhance women’s economic participation, calling for collaboration between financial institutions and government initiatives. “Inclusive policies that eliminate barriers are essential for marginalized groups to fully participate in the economy,” he stated. He also emphasized the importance of simplifying the documentation required to open bank accounts and reducing taxes on smartphones, as these devices are essential for accessing financial and e-health services.
“Only 20% of women in Pakistan have access to smartphones, a number that must increase if we want to promote true financial inclusion,” Harris explained. He highlighted that removing these barriers would not only increase financial inclusion but also support other initiatives, such as digital financial literacy and access to healthcare services.
Turning to the broader financial landscape in Pakistan, Haaris addressed the limitations of the current banking system, which largely focuses on lending to the government rather than the private sector. This trend restricts the availability of credit to MSMEs and other crucial sectors that drive economic growth. “The banking sector needs to shift its focus toward the private sector, particularly MSMEs, to enable meaningful economic progress,” he said.
A key part of this shift involves improving women’s access to finance, which is critical for achieving positive economic outcomes. Research shows that women borrowers tend to have higher repayment rates than men, both in Pakistan and internationally. This provides a strong case for financial institutions to view women as valuable clients, incorporating financial inclusion into their core business models rather than treating it as a peripheral Corporate Social Responsibility (CSR) activity. This approach not only aligns with social responsibility but also presents a solid business opportunity, further contributing to the overall national development that Haaris envisions.
