In 2014 only 7% of Pakistanis had access to financial institutions. In the decade since that number has gone up to 35%. On the surface this is a massive shift. It means Pakistanis have been signing up for financial services in the droves.
Why does this matter? Because access to financial services is a cornerstone of any growing economy. Access to capital is the basic building block of any developing economy. But Pakistan’s financial inclusion revolution harbours a secret. According to the Karandaz Financial Inclusion Survey 2024, Pakistanis have had increasing access to credit in recent years. But what is this credit used for?
K-FIS data shows that one in four adults reported they needed credit in the past year and when asked the reason, the responses pointed more towards survival than growth. The reasons range from health shocks, emergencies and family obligations.
Weddings and funerals also appear in the same sentence as medical bills as central reasons for borrowing. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
