RIYADH: Financial inclusion in Egypt has surged by 181 percent over the past eight years, with 71.5 percent of eligible citizens gaining access to banking services by mid-2024, according to an official report.

The Central Bank of Egypt revealed that the number of citizens with access to transactional accounts — including bank accounts, Egypt Post accounts, mobile wallets, and prepaid cards — has risen to 48.1 million out of 67.3 million eligible individuals aged 16 and above.

A range of tailored initiatives, such as the CBE’s financial inclusion events, held six times a year since 2017, have played a crucial role in broadening access. These events have waived fees, eliminated minimum balance requirements, and targeted underserved populations, including women, youth, and persons with disabilities.

The report highlights that these initiatives have resulted in the issuance of 7.5 million prepaid cards, 2.5 million mobile wallets, and 7.5 million bank accounts.

One of the key initiatives is a program supporting smallholder farmers in collaboration with the UN World Food Programme. This effort integrates small farmers into the formal financial sector by providing tailored financial solutions that enhance their economic and social capabilities.

In addition, the CBE has partnered with the National Council for Women and the Agricultural Bank of Egypt to expand digital savings and lending groups aimed at increasing women’s financial inclusion. These groups promote savings, raise awareness of fintech applications, and encourage the adoption of digital financial services.

The financial inclusion drive is aligned with Egypt’s Decent Life initiative, launched in July 2021. This program focuses on improving living standards for rural populations, reaching 20 governorates, 52 centers, and 1,667 villages by expanding access to financial services and supporting underserved communities.

Since its launch, the program has seen the installation of 1,254 new ATMs, the opening of 651,900 bank accounts, and the issuance of 993,000 prepaid cards.

The CBE’s emphasis on financial inclusion has also had a significant impact on Egypt’s broader economic landscape. Between December 2015 and June 2024, financing for micro, small, and medium-sized enterprises grew by 388 percent. Microfinance portfolios in both banking and non-banking sectors have expanded by over 1,350 percent, thanks to CBE-backed initiatives.

In underserved areas, funding has increased substantially. Facilities directed toward the Delta region grew by 72 percent, while Upper Egypt saw a 59 percent rise in funding from December 2020 to June 2024. Financing for the industrial sector also rose by 61 percent during this period, reflecting targeted efforts to channel capital into job-creating sectors and reduce unemployment.

As of June 2024, Egypt’s total microfinance portfolio reached 93.2 billion Egyptian pounds ($1.8 billion).

This robust growth in financial inclusion underscores Egypt’s commitment to expanding economic opportunities, reducing poverty, and fostering inclusive development across the nation.

ISLAMABAD: The Pakistan Stock Exchange (PSX) smashed past the 116,000 mark during intraday trading on Monday on anticipation that the central bank will slash the interest rate at the monetary policy meeting today, analysts said.

The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.

According to a poll by Topline Securities published earlier this month, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps.

The benchmark KSE-100 index climbed 1,932.63 or 1.69 percent to reach an intraday high of 116,234.43 points at 2:58 p.m. from the previous close of 114,301.80. 

“Anticipation of a sharp interest rate cut together with strong liquidity with mutual funds is driving the market up,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. “It is a broad-based increase, with only banks in the red today on fears of higher taxation.”

The upward surge was driven by the anticipation of a “sharp interest rate cut” by the State Bank, boosting economic growth, corporate profitability and strong liquidity in mutual funds fueled by increased investor confidence and higher savings rates.

Pakistani stocks have been performing significantly well this month, closing at record highs multiple times. 

“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.

Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.

Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.