Project Description
Griffith Asia Institute, in conjunction with Pakistan’s National Institute of Banking and Finance, a subsidiary of the State Bank of Pakistan, is examining the learnings and impact of Pakistan’s ambitious nation-wide program to increase financial literacy among its youth.
Project Personnel and Beneficiaries
• Pakistan’s policymakers and regulators
• Pakistan’s students and educators
Outcomes to Date
The financial literacy of students who had participated in the NFLP-Y program was found to be significantly higher than those who had not participated. This finding was consistent across both urban and rural students. The greatest improvement was found in students whose first language (as spoken at home) placed them in minority groups. Overall, it was found that participation led to improved financial literacy scores, increased confidence, fostered positive beliefs, and influenced various aspects of financial decision-making.
Project Significance
Financial literacy has been recognised as a core life school that students should possess in order to meet the ever-increasing challenges of a complex world and to enhance their future employability. Pakistan is one of a number of countries investing in financial education, in accordance with Organisation for Economic Cooperation and Development (OECD) policy recommendations.
The ability to make informed financial decisions can be empowering, whilst the lack of ability can lead to poverty. Building good financial literacy in populations requires an inclusive financial system. To achieve this the State Bank of Pakistan has launched the National Financial Literacy Program for Youth (NFLP-Y), seeking to deliver financial education to Pakistani youth and school children to provide them with the skills and knowledge needed to use financial products and services effectively and ethically in the future. This flagship program is being delivered across targeted demographic groups between 2018–2023 in consultation with local stakeholders.
Griffith Asia Institute (GAI) is pleased to collaborate with NIBAF to prepare a case study that will assess the effectiveness of NFLP-Y in enhancing the financial knowledge and understanding capacity of its target audience of youth between the ages of 9 and 29 years of age. This case study will document the key areas of accomplishments, failures, barriers, and suggestions for future financial literacy programs within Pakistan and around the globe. The learnings contained within this case study will be of great use to broader stakeholders and policy-makers across the region as they seek to further develop the financial capabilities of their own youth.