The Securities and Exchange Commission of Pakistan (SECP) has approved the country's first digital financing product exclusively for women-led micro, small and medium enterprises (MSMEs), marking a significant step toward financial inclusion. The product, named 'Khudmukhtar Khatoon,' is a Shariah-compliant facility operated by Walee Financial Services that allows women entrepreneurs to obtain asset financing ranging from Rs100,000 to Rs1.5 million entirely through a digital platform.
Addressing the Credit Gap for Women Entrepreneurs
Women-owned businesses in Pakistan remain significantly underserved by formal financial institutions. Many operate informally, lack collateral, or struggle with traditional banking procedures, forcing them to rely on personal savings or family resources for expansion. The new product aims to tackle these barriers by digitizing the entire process—from application to disbursement—and linking borrowers to an integrated marketplace for purchasing machinery, equipment, and other productive assets.
According to the SECP, women can complete the financing process via a mobile application and repay the facility in monthly installments over up to one year. While the financing size may seem modest, experts emphasize that access to credit, rather than the amount, is the primary hurdle for women entrepreneurs in Pakistan.
Expert Insights on Financial Inclusion
Ahmed Ali Siddiqui, Founding Director of the IBA Centre for Excellence in Islamic Finance (IBA CEIF), stated, 'Women-led startups and enterprises in Pakistan can significantly influence the country's economic development. However, one of the main challenges faced by these businesses is limited access to finance.' He noted that Pakistan has made 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 added.
Siddiqui remarked that expanding access to Shariah-compliant SME financing, credit guarantees, and cash-flow-based lending solutions can unlock a significant untapped segment, contributing to economic growth, job creation, and women's economic empowerment.
Broader Push for Digital Finance
The launch reflects the SECP's broader push toward digital finance. Non-banking finance companies (NBFCs) are emerging as alternative funding sources for underserved markets. SECP data shows that lending NBFCs disbursed approximately Rs7.5 billion to nearly 1.7 million micro and small businesses during the six months ending December 2025. The success of 'Khudmukhtar Khatoon' will depend on adoption and accessibility, especially for women outside major cities. It could potentially serve as a model to reduce Pakistan's gender financing gap and expand formal financial inclusion.
