Pakistan’s central bank launches framework allowing teens to open independent accounts

Pakistan’s central bank has introduced a new framework allowing teenagers to independently open and operate bank accounts and digital wallets, aiming to expand youth participation in the formal financial system.

The State Bank of Pakistan, the country’s financial regulator, announced the initiative as part of efforts to promote financial literacy and responsible money management among young people.

Under the new framework, teenagers will be able to own and manage their accounts and digital wallets directly. Previously, most minors were limited to joint or parent-controlled accounts, restricting independent financial use.

The SBP said the move is designed to help teenagers save securely, conduct transactions and build financial habits at an early age within a regulated environment.

Pakistan has about 26 million people between the ages of 13 and 18, according to figures cited by the central bank. While overall account ownership has risen to 67% of the adult population, the SBP said teenagers have remained largely outside independent banking access.

The central bank said the framework provides structured and secure access to formal financial services and introduces young users to digital financial tools.

It described the initiative as a foundation for participation in an increasingly digital economy, equipping youth with experience in using financial services offered by banks and other institutions.

The framework forms part of the SBP’s Strategic Plan 2023-28 and aligns with the National Financial Inclusion Strategy 2024-28, both of which prioritize expanding access to financial services, including for young people.

The SBP also noted that it received the AFI Global Youth Financial Inclusion Award last year, describing the new framework as building on those efforts.

The central bank said the teenagers’ account initiative is intended to support the development of a more inclusive financial system by enabling young people to independently access and manage financial services.