KARACHI: The State Bank of Pakistan on Wednesday launched a framework that lets 13- to 18-year-olds independently own and operate bank accounts and digital wallets in an effort to promote financial inclusion and enable youth to participate in an increasingly digital financial ecosystem.
The framework is designed to empower the country’s youth to save securely, transact confidently, and develop responsible financial habits, the central bank said in the statement.By providing a convenient entry into the formal financial system at an early age, the SBP aims to foster meaningful participation of teenagers in the economy. According to the SBP, the initiative addresses a critical gap in Pakistan’s financial landscape. While overall account ownership has risen to 67 per cent of the adult population, teenagers have largely been confined to joint or parent-controlled accounts, limiting their practical financial engagement and learning. With around 26 million Pakistanis between the ages of 13 and 18 years, this framework is an effort to nurture a generation that is financially literate, digitally adept, and capable of driving future growth.
This initiative is a cornerstone of the SBP’s Strategic Plan 2023-28 and the National Financial Inclusion Strategy (NFIS) 2024-28, which prioritise youth inclusion. “The teenagers account framework is more than a new banking product, it is a strategic step towards a more inclusive financial system,” the SBP said.
According to the details mentioned in the SBP’s circular issued the same day, the account and wallet will be opened in the name of the applicant, individually or jointly, and will be opened in local currency only. It will be allowed to receive the equivalent Pakistani rupees of foreign remittances.
Parents and teenagers will be subject to identity verification and other know-your-customer requirements. When appropriate, biometric verification or an alternative ID verification mechanism from the National Database and Registration Authority is required for teenagers.
