Abstract:
The study uses a linear regression model to look at how financial inclusion has affected Pakistan's development and economic growth between 2004 and 2022. The number of ATMs per 1000 km2 and the number of commercial banks per 1000 km2 were used to assess economic inclusion in the study. GDP growth was used as a proxy for economic growth through time, and per capita income was used as a gauge of poverty and, thus, a development indicator. The expansion of bank branches, lowering barriers to accessing finance, and the involvement of the banking industry are among the strong assumptions for financial inclusion on growth, which are based on the availability of financial products. Financial inclusion is regarded as a crucial tool for achieving the objective of inclusive economic growth. The current study evaluates Pakistan's financial inclusion situation and its importance for equitable growth. According to empirical evidence, Pakistan falls short of other nations in terms of financial inclusion. The Probit estimation method is used in the study to identify the factors that affect financial inclusion in Pakistan. It also looks into the connection between personal traits and actual obstacles to financial inclusion. Factors of multiple sources of borrowing are also explored. Financial inclusion is discovered to be significantly influenced by income, educational status, and gender inequality.
