Pakistan has taken a significant step toward expanding women’s financial inclusion after the Securities and Exchange Commission of Pakistan (SECP) approved the country’s first fully digital financing facility designed exclusively for women-led micro, small and medium enterprises (MSMEs).
The new financing product, called “Khudmukhtar Khatoon”, will provide Shariah-compliant asset financing ranging from Rs100,000 to Rs1.5 million through a digital platform operated by Walee Financial Services. The initiative aims to address one of the biggest challenges facing women entrepreneurs in Pakistan: access to formal credit.
The SECP said women entrepreneurs will be able to complete the entire financing process digitally through a mobile application. The platform will cover application submission, approval, disbursement and repayment. Borrowers will also gain access to an integrated marketplace where they can purchase machinery, equipment and other productive assets needed to grow their businesses.
The financing facility will allow repayments in monthly installments over a period of up to one year.
Addressing Pakistan’s Gender Financing Gap
The launch comes at a time when policymakers and regulators are focusing on increasing women’s participation in the formal economy. Although women-owned businesses continue to grow across Pakistan, many entrepreneurs still struggle to secure financing from traditional banks.
Women-led enterprises often operate informally and lack the collateral required by conventional lenders. Many business owners also face difficulties navigating complex banking procedures, forcing them to rely on personal savings or support from family members to expand operations.
Industry experts believe easier access to financing could unlock substantial economic potential.
“The initiative comes at a time when policymakers are increasingly focused on expanding financial access for women, who remain underrepresented in Pakistan’s formal economy despite their growing participation in entrepreneurship. Industry observers note that limited access to credit has long constrained the ability of women-owned enterprises to scale up operations, create jobs and contribute more meaningfully to economic growth,” said Ahmed Ali Siddiqui, Founding Director of the IBA Centre for Excellence in Islamic Finance (IBA CEIF).
He added that women-led startups and enterprises can play a major role in Pakistan’s economic development but continue to face financing challenges.
Digital Finance Push Gains Momentum
The approval also reflects the regulator’s broader efforts to promote digital finance and strengthen alternative financing channels.
According to Siddiqui, Pakistan has made notable progress in financial inclusion. More than 17 million new women-owned bank accounts have been opened since 2021.
“Expanding access to Shariah-compliant SME financing, credit guarantees and cash-flow based lending solutions can unlock a significant untapped segment and contribute meaningfully to economic growth, job creation and women’s economic empowerment,” he said.
SECP data shows that lending non-banking finance companies (NBFCs) disbursed around Rs7.5 billion to approximately 1.7 million micro and small businesses during the six months ending December 2025.
Analysts say the success of Khudmukhtar Khatoon will depend on how effectively it reaches women entrepreneurs outside major urban centres. If widely adopted, the model could help narrow Pakistan’s gender financing gap and create new opportunities for women-led businesses across the country.
The initiative also supports broader national goals of increasing financial inclusion, encouraging entrepreneurship and promoting sustainable economic growth through greater participation of women in the formal economy.
