Demand-side analysis of financial inclusion in Pakistan: lessons from south Asian economies

Abstract

The purpose of this study is to explore the dynamics of financial inclusion in selective lower middle income South Asian economies, Sri Lanka, India, Bangladesh and Pakistan. Owing to the fact that financial inclusion is lowest in Pakistan, this study attempts to delineate the factors that are related to financial inclusion in Pakistan. The study further aims to analyse the potential share of demand side barriers responsible for financial exclusion. This study uses data from Global Findex published by World Bank to use logistic regression model that classifies the individuals who are more likely to be financially excluded due to various barriers. The study concludes that an individual being male, more educated, richer and older is more likely to be financially included. The barriers faced differ for different groups. This work therefore consists of findings to design policies to foster financial inclusion in Pakistan.