Financial Literacy Score And Determinants Of Financial Inclusion In Case Of Pakistan
Author: Syed Rahim

This research aims to explore the financial literacy score and determinants as well as indicators of financial inclusion in Pakistan. For this purpose, a primary (survey) based data are collected from all Pakistan regions through a structured questionnaire. A data of 508 respondents are collected in total, out of which 502 were found complete for analysis. The data is analyzed in three ways. Firstly, the financial literacy score and the financial inclusion indicators score is calculated from the collected data. The calculation shows that each respondent got 11.6 financial literacy marks on average, out of the total 21 marks. However, the respondents’ average financial inclusion points were calculated as 3.7 points out of a total of 7 points. Secondly, the analysis is done for descriptive statistics, in which all the demographic and socio-economic variables were analyzed. From the descriptive statistics, the results found that the male respondents, married respondents, highly educated respondents, respondents with EBAF background, bank account, and having trust in financial institutions are more financially literate and financially included than the others. Thirdly, the Ordinary Least Square (OLS) techniques are employed to investigate financial literacy’s impact on financial inclusion and financial inclusion on financial literacy. Additionally, the demographic variables are also regressed on both the variables, i.e., financial inclusion and financial literacy. The result indicates that financial literacy has a positive and significant impact on financial inclusion. Similarly, financial inclusion has a significant positive effect on financial literacy. The demographic variables also have a substantial impact on both financial inclusion as well as financial literacy. This study can be further enhanced for the international comparison level. Policies should be made that make the financial education compulsory at school and college level, to improve financial management and financial well-being. Additionally, the policies regarding technological advancement and innovation must have opted for future concerns. Supervisor:- Dr. Ahsan ul Haq Satti

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Supervisor: Ahsan ul Haq Satti

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