Fostering Women’s Financial Independence with Mobilink Bank’s Inheritance Calculator

When discussing women’s inheritance rights in Pakistan, it is distressing to note that only 3% of women receive their rightful share. 97% of women, whether from rural, remote, or urban areas, do not legally receive what is rightfully theirs. Even within progressive communities, many women forgo their inheritance upon marriage, underscoring the deep-seated cultural and social barriers that persist in our country.

This issue is not just a matter of personal loss for these women; it represents a broader social justice failure that must be urgently addressed. This further exacerbates women’s financial independence, which already stands at an alarmingly low level in our country.

Haaris Mahmood Chaudhary, Interim CEO of Mobilink Bank, emphasizes, “Women play a significant role in Pakistan’s overall economic development. However, their contributions remain undervalued and unsupported, particularly when it comes to formal access to financial services and inheritance.” Mobilink Bank has introduced an innovative solution to this inheritance disparity through its Dost App: The Inheritance Calculator. This digital tool helps women calculate their inheritance share with ease and convenience. Haaris notes, “With this industry-first Inheritance Calculator, we are fostering a deeper understanding of financial rights and inclusion. Our long-term commitment to financial accessibility ensures that women have the tools and resources they need to make informed financial decisions.”

In developing countries, financial inclusion is key to addressing the gender, financial, and digital divide. However, the statistics in Pakistan are pretty grim: less than 14% of women have bank accounts, reflecting socio-economic barriers to accessing financial services.

“Lack of financial literacy among women contributes to their underrepresentation in the formal financial sector. This knowledge gap, coupled with cultural barriers, prevents women in semi-urban areas from claiming their rightful inheritance share. Mitigating this challenge requires a multifaceted approach, including increased access to financial education, tailored financial offerings, and supportive policies that can empower women,” Haaris further explains.

He emphasized that women are often pressurized to forgo their inheritance share in favor of male family members. This practice undermines their economic independence and has significant socio-economic repercussions, affecting both individual women and society. Women, representing 49% of the total population in Pakistan, are indispensable to advancing key sectors such as Micro, Small, and Medium Enterprises (MSMEs) and agriculture. Yet, cultural barriers and a lack of financial literacy hinder their full economic participation. Addressing these challenges is essential for unlocking their potential, fostering inclusive growth, and enabling them to make substantial contributions to the development of these essential sectors.

Haaris champions a comprehensive strategy to boost women’s economic participation by building a supportive ecosystem. Central to this is collaborating with financial institutions and advocating for government action. “Inclusive policies that remove access barriers are essential for marginalized groups to fully participate in the economy,” he emphasizes. Harris highlights the need to simplify documentation for opening bank accounts and remove taxes on smartphones, which are vital for accessing financial and e-health services.

“Smartphone penetration among women is 20%, which needs to change if we are to foster financial inclusion in true spirit. Removing these barriers would expand our reach and support other initiatives, such as financial education and healthcare services, increasingly provided through digital platforms,” Haaris adds.

In discussing the broader financial landscape in Pakistan, the Mobilink Bank Interim CEO highlights the limitations of the current banking system, which predominantly lends to the government rather than the private sector. This trend has significant implications for credit availability to MSMEs and other sectors critical to economic growth. “The banking sector needs to shift its focus towards the private sector, particularly MSMEs if we are to see meaningful economic development,” says Haaris.

A crucial aspect of this shift involves improving women’s access to finance, which is instrumental in achieving positive economic outcomes. Evidence shows that women borrowers consistently demonstrate higher repayment rates than their male counterparts in Pakistan and globally. This highlights the opportunity for financial institutions to view women as valuable clients, integrating financial inclusion into their core business models rather than treating it as a peripheral CSR activity. Such an approach aligns with social responsibility and represents a sound business strategy, further contributing to the overall national development that Haaris envisions.

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