Prime Minister Imran Khan during his visit to Ehsaas Kafaalat payment site in Islamabad today launched ‘Ehsaas Savings Wallets’ (Ehsaas Bachat Accounts) pilot initiative for 7 million Kafaalat beneficiaries. On the site, PM was given the demonstration of Ehsaas Savings Wallets (ESWs). He also interacted with the beneficiary women present on the site and interacted with them to get insights on this brand new Ehsaas initiative for financial inclusion of the disadvantaged families. Financial inclusion is a central goal of Ehsaas and key to unlocking the potential of millions of the most disadvantaged women in Pakistan.
Addressing the ceremony, PM congratulated Ehsaas for introducing Ehsaas Savings Wallets for 7 million women. “In Pakistan, most of the digitally and financially excluded segments are destitute women. For the first time, the poorest women in Pakistan will have the option to save their stipends. I believe that savings can help families climb out of poverty; often access to saving accounts is the first step towards broader financial inclusion.” Citing the global best practices, PM added, “By paying for emergency expenditures through savings, vulnerable families are also protected from falling further into the poverty trap.”
Further, he thanked Her Majesty Queen Máxima of the Netherlands for her remarks at the launch of the Ehsaas Financial Inclusion Strategy when she visited Pakistan in November 2019 in her capacity as a United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development and Honorary Patron of the G20’s Global Partnership for Financial Inclusion.
Dr. Sania Nishtar gave a detailed snapshot of Ehsaas broadly and the saving wallets initiative to the PM. “Coming under the umbrella of Ehsaas, the Bachat Account initiative will also focus on financial literacy of Kafaalat beneficiaries to ensure that women draw maximum benefit from this empowering initiative. The initiative will help the marginalized people plan for everything from long-term goals to unexpected emergencies.”, said Dr. Sania while briefing the PM.
Congratulating the roll out of flagship financial inclusion programme by the government of Pakistan, the UN Secretary General’s Special Advocate for Inclusive Finance for Development, Queen Máxima sent a special message for Ehsaas delivered by H.E. Mr. Wouter Plomp, Ambassador of Netherlands to Pakistan. The Ambassador quoted Queen Máxima as follows: “Savings have multiple benefits for the poorest households. Financial inclusion matters because of its power to improve people’s lives. It is not an end in itself—rather, a means to create jobs, take part in an increasingly digital economy, protect oneself against sickness, drought or an accident. It also helps empower women and increases income and productivity. This is beneficial for individuals, families, communities and all of Pakistan. [The latest Global Findex data from 2018], shows the overall advances in financial inclusion have left women behind— 35% of men have accounts, compared to just 7% of women. So, the need for this strategy is evident. But more than a strategy, the need for its implementation is paramount. I am delighted to join the launch of the roll out of the Ehsaas Financial Inclusion Strategy.”
Currently, Kafaalat beneficiaries are getting their cash grants through the Limited Mandate Accounts (LMA) after biometric verification. The saving wallets will be linked to existing LMA accounts of Kafaalat recipients, providing them the option to save money and even purchase goods through the wallets. Under the initiative, Ehsaas beneficiary women will now be empowered to either draw their stipends or save money into digital wallets.
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