ISLAMABAD: The World Bank will prepare a national financial inclusion strategy for Pakistan and will also help the State Bank in the areas of financial infrastructure and financial market development.

According to details of the agreement signed by the State Bank and the World Bank, the latter will help the SBP design a framework for coordinating and implementing the strategy.

The State Bank will pay $500,314 to the World Bank for the preparation of the strategy, according to text of the agreement made available to Dawn. The agreement, which became effective on Aug 19, will expire on Feb 28, 2015.

The strategy will be finalised in five months and launched by the end of 2014. Between August and December, the World Bank will provide assistance to State Bank to design a framework for coordinating and implementing the strategy.

The World Bank will help SBP assess and produce technical notes on status of financial inclusion in the areas of micro, small and medium enterprises, finance, housing finance, insurance and pensions, branchless banking, financial literacy and consumer protection, legal and regulatory framework, including for secured transactions and collateral registry.

The World Bank will also suggest to SBP priority policy actions and other activities to be addressed by SBP and other financial regulators as well as other public and private sector actors.

Published in Dawn, September 12th, 2014