National Financial Literacy Program milestones achieved by Dubai Islamic Bank Pakistan

“UNITING FOR INCLUSIVE FINANCIAL EDUCATION EMPOWERING THE UNDERSERVED, STRENGTHENING”

SBP is celebrating Pakistan Financial Literacy week 2025 from April 14 to 18^th 2025 nationwide. Providing basic financial education to unbanked and low-income strata, especially the youth and women.

DIBP is honoured to participate in the Pakistan Financial Literacy week “ Financial Inclusion through Innovation and Collaboration. The theme emphasizes delivering financial education through collaboration and innovative methods, ensuring greater accessibility.” Engaging Students, Women, Youth and PWD’s with insights on Islamic Banking.

This is the First Step to create awareness of basic financial education for the masses. Benefits of Shariah-compliant banking solutions, highlighting the benefits of ethical, Riba-free financial practices. Develop skills and attitudes towards budgeting, savings, investment, debt management, financial negotiation, rights and obligations, etc.

By supporting the NFLP, DIBP reinforces its commitment to financial inclusion and literacy, helping individuals make informed choices and contributing to the broader economic well-being of Pakistan.

Bank’s Journey of NFLP

DIBPL is honored to participate in financial inclusion through National Financial Literacy Program (NFLP). This is the First Step to create awareness of basic financial education for the masses. DIBPL has been a leading contributor to serve the cause. DIBPL conducted financial literacy awareness session by educating 3,750 beneficiaries Pan Pakistan. Sessions conducted at the following Districts:

• Chakwal
• Gawadar
• Karachi Central
• Karachi East
• Karachi West
• Kasur
• Korangi
• Lahore
• Malir
• Mirpur
• Muzaffarabad
• Rawalpindi
• Sialkot

By understanding the Importance of financial literacy and inclusion for the country, the Bank has decided to continue the program for next five (5) years under the supervision of SBP. DIBPL will continue to serve the cause through NFLP-II.

It is a part of our mission that we will continue to serve the national cause by remaining a proactive partner of NFLP-II. Our teams are driven by their Islamic Vision and Values that demand positive engagement, solidarity, and integration with people of different backgrounds and lifestyles, and bringing them financial strength for a better and more productive future.

We are pleased to inform you that we have successfully achieved 72% of our NFLP targets 2023-2024 . Please find below detailed report outlining the conducted sessions and street theatres. With this momentum we have built I am confident that we are on the right track and will for sure meet our 100% assigned target by the end of JANAUARY 2024 inshaAllah.

Overview

The National Financial Literacy Program (NFLP) is a collaborative effort between the SBP and various stakeholders, including commercial banks, microfinance banks, and non-profit organizations. The program aims to enhance financial knowledge and skills among different segments of society, enabling individuals to make informed financial decisions. NFLP is SBP’s flagship program that is focused on imparting basic financial education to unbanked/underserved segments of population especially women.

DIBP is leading this incentive and targeted large number in general public to provide financial and account opening education with target audience, comprising of an equal mix of males and females (50:50 ratio) between the ages of 18 and 60 years across rural areas across the country.

At least 82 percent women in Pakistan are unbanked people without a bank account, according to a non-profit firm, leaving them without basic financial services, and putting their social rights at risk.

One of the major reasons for why large portion of population is unbanked is the lack of awareness of financial products and their usage. A large portion of population also lacks basic money and financial management skill. The concepts of budgeting, investing savings are novel for them.

Financial inclusion has always been a challenge for Pakistan keeping in view the socioeconomic demographics, low income levels, cultural barriers, gender inequality, low literacy levels and presence of informal economy prevalent in the country. The level of financial inclusion in Pakistan up until 2015 was one of the lowest in the world as only 16 percent of the adult population had a bank account and the account ownership was even lower for women at 11 percent.

The need for financial inclusion and literacy has become increasingly important to create a more financially literate population in Pakistan. Together with SBP, DIBPL is taking preemptive steps to ensure that women and the underserved population have access to the financial services they need by actively promoting financial education, basic banking services, and developing innovative products that can help people manage their finances better.

Keeping in view the national importance of financial literacy and inclusion for the country, the NFLP Steering Committee, has decided to continue the program for next five (5) years as well. DIBPL will continue to serve the cause NFLP-II.

In 2024, DIBPL aims to create financial literacy, with a focus to address female population. We would also welcome NGO’s and community workers to partner with us to create financial awareness among unbanked community especially among females.

Current Literacy Rate in Pakistan

Unfortunately, literacy rates differ depending on gender in Pakistan. According to recent data, male literacy stands at 72.5% while women’s literacy stands at 51.8%. But there is reason for hope as women’s literacy has increased by up to 10% in three years, showing progress toward narrowing gender gaps in literacy rates.

Literacy and awareness sessions conducted under NFLP are not merely limited to the unbanked population but shall be imparted to all individuals who wish to manage their finances effectively. Throughout this Program, the Bank shall also prioritize women’s financial inclusion, encouraging them to participate in economic activities of Pakistan.

One of the significant motivations why this general population remains unbanked is the absence of familiarity with financial items, how to utilize them and how these can assist them and settle on with bettering financial choices.

Taking benefit of National Financial Literacy Program, DIBPL also additionally onboard audience on Shariah compliant banking and financial solutions as well as create awareness about Riba Free banking.

What are the major challenges contributing to low literacy rates in Pakistan?

Poverty, inadequate infrastructure, and gender disparities in education are some of the major challenges contributing to low literacy rates in Pakistan.

The key objectives of the NFLP program are:

• Imparting knowledge and understanding of, financial concepts, banking/financial products and services.
• Develop skills and attitudes towards budgeting, savings, investment, debt management, financial negotiation, rights and obligations, etc.
• Facilitate behavioral changes and practices to improve financial outcomes; including financial well-being through increased savings, improved debt management, and perceived financial stress or satisfaction.

Target Area 1: Classroom Sessions Objective:

• To educate masses from low income classes on financial literacy and benefits of financial inclusion Target Audience:
• Unbanked and underserved population in the age group of 18-60 years, having valid CNIC. Specific Targets:
• District-wise targets for classroom sessions have been assigned to banks which have to be achieved accordingly
• Ensure At least 50% participation is by females
• Ensure at least 80% of the participants open their regular/mobile accounts
• To educate masses from low income classes on financial literacy and benefits of financial inclusion Target Audience
• Unbanked and underserved population in the age group of 18-60 years, having valid CNIC

Promotional Activities:

1. Social Media Awareness

DIBP plans to promote NFLP through promotional activities fun and games/ educational animated videos /contents/booklets/ pre-recorded drama videos to increase financial literacy and inclusion through their social media channels Facebook, Linkedin and Instagram.

Mode of information delivery to the target audience will be through Classroom Sessions and Street Theater. Target audience should preferably be comprised of mix of males and females (50:50 ratio) between the ages of 18 and 60 years across rural and urban areas.

In Classroom Sessions and Street Theater will provide training contents/booklets/ pre-recorded drama videos to educate audience and encourage them to avail banking service on the below basic financial areas i.e. are.

• How to do Budgeting.
• What are saving options?
• Where the individual can Investment.
• How to Managing Debit.
• Accessing to Financial Institute.

Consumer Rights & Responsibilities

2. BTL Activities

NFLP Marketing collaterals to be sent in branches like brochures, flyers and banners.

3. Awareness caller tune for financial education

Caller tune is an additional way of reaching out and communicating an educational message. DIBP may have messages for financial education as caller tune at the bank’s helpline service.

4. Webinars

DIBP may launch a series of webinar for Imparting knowledge, developing skills and attitudes and facilitating behavioral change regarding financial literacy/inclusion. For this purpose, experts from the bank itself as well as officials from SBP and SBP BSC’s officials may be invited. Further, other stakeholders may also be taken on board such as academia, chambers of commerce & industries, professionals, etc.

5. Information of Financial literacy and inclusion initiatives:

Field trainers are bank’s officials who shall conduct classroom sessions and street theatres on the ground. As Field trainers interact with the community directly and educate the beneficiaries, therefore their role is vital. Significance of role enacts responsibilities on FTs to organize the sessions and impart training in conducive environment so that learning may be enhanced. It is the responsibility of Field Trainer to ensure quality of sessions in following ways:

• Conduct NFLP-II in timely manner and as per schedules submitted by bank.
• Record and submit complete and correct information of NFLP beneficiaries
• For conducting of on-ground activities: o Use suitable teaching aids i.e. flip charts, pictures, videos, flashcards, props or any other material to complement their teaching style for facilitating better understanding of participants.
• NFLP booklet be distributed to classroom participants.
• Ensure that regular/mobile accounts of the beneficiaries are opened properly and inform participants on utilization of the same.
• Refreshments may be arranged for the participants as per bank’s policy.

DIBPL NFLP Target Areas: All over Pakistan.