Mobile financial services can help create new jobs, raise GDP

ISLAMABAD: Wider access to mobile financial services in Pakistan could lead to the creation of 1 million new jobs by 2020, while an estimated US$2 billion could be added annually to revenues, helping raise GDP growth by 3%.Speakers expressed these views during a seminar titled `Shaping our financial future – Socio-Economic Impact of Mobile Financial Services’, organized by a local mobile company.CEO of mobile company Christian Albech speaking on the occasion said “The study shows that mobile financial services can help families and businesses to respond in a better way to expense shocks, and can have positive effects on entrepreneurship.They can help improve children’s chances of completing primary school. Women’s access to funds can be bettered, with positive effects on child education and health. Mobile financial services can prove invaluable in supporting Pakistan’s social development goals.”While addressing the participants, President & CEO Tameer Microfinance Bank,Nadeem Hussain said “The study shows that mobile financial services can help create new jobs and boost government revenues.GDP growth can be stimulated by increased access to credit, which prompts new business creation, and by formal remittances and increased savings.

Mobile financial services can facilitate public services by providing e- government options and help reduce costs of financial transactions such as the disbursement of aid.”According to the study, given a supportive environment, the percentage of Pakistan’s adult population using mobile financial services could go up from the current 2% to 35% by 2020 resulting in higher savings, creation of formal credit channels, and improved insurance usage.Participants included representatives from the Pakistan Telecommunication Authority, State Bank of Pakistan, Telenor Pakistan, Tameer Microfinance Bank, senior government officials and development specialists. – Brecorder