Pakistan approves first digital Shariah-compliant financing for women entrepreneurs

The Securities and Exchange Commission of Pakistan (SECP) has approved the country's first fully digital financing product exclusively for women-led micro, small and medium enterprises (MSMEs), in a move aimed at bridging the gender financing gap. Named 'Khudmukhtar Khatoon', the facility offers asset financing ranging from Rs100,000 to Rs1.5 million through a Shariah-compliant platform operated by Walee Financial Services. Women entrepreneurs can apply via the 'Hakim' mobile application, which provides a seamless digital onboarding process from application to disbursement.

According to the SECP, the financing will be used for purchasing machinery, equipment, and other business assets, with repayment made in equal monthly installments over a one-year period. The initiative targets women-owned businesses that are significantly underserved by formal financial institutions, often operating informally, lacking collateral, or facing difficulties in navigating traditional banking procedures. Industry observers have noted that limited access to credit has long constrained the ability of women-led enterprises to scale operations, create jobs, and contribute more meaningfully to economic growth.

Ahmed Ali Siddiqui, Founding Director of the IBA Centre for Excellence in Islamic Finance (IBA CEIF), commented that while Pakistan has achieved remarkable progress in women's financial inclusion—with over 17 million new women-owned bank accounts opened since 2021—the next challenge is enabling women-led SMEs to scale beyond microfinance. He emphasised that 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.

Data from the SECP shows that non-banking finance companies (NBFCs) are emerging as alternative funding sources for underserved segments, with lending NBFCs disbursing around Rs7.5 billion to approximately 1.7 million micro and small businesses during the six months ended December 2025. The launch of Khudmukhtar Khatoon reflects the regulator's broader push towards digital finance, but its success will depend on adoption and accessibility, especially for women outside major cities. The initiative could potentially serve as a model to reduce Pakistan's gender financing gap and expand formal financial inclusion.