If we look up the term ‘Literate’ in the Webster dictionary, it defines literate as an “individual who can read or write”. The Government of Pakistan also used a similar definition while gauging the country’s literacy rate up until 2017. Afterwards the definition of ‘Literacy’ was updated as the “ability to read and understand simple text in any language from a newspaper or magazine, write a simple letter and perform basic mathematical calculation (i.e., counting and addition/subtraction).” This updated definition is still insufficient in encompassing this dynamic concept. In my view, an integral part of the definition of literacy should be the “understanding of one’s rights and responsibilities”. This applies to all types of literacy whether it be religious literacy in which a person should understand his/her rights and responsibilities as the follower of a particular religion, political literacy connected to the rights and responsibilities of a voter, or digital literacy which concerns the awareness of the rights and responsibilities as a user of various digital channels and social media platforms. Another important type of literacy which is severely lacking in Pakistan is financial literacy. According to the Standard & Poor’s Ratings Services Global Financial Literacy Survey, only 26 percent of the adult population is financially literate. Technically speaking financial literacy is the “cognitive understanding of financial components and skills such as budgeting, investing, borrowing, taxation, and personal financial management.” In layman’s terms, it may be understood as the ability to make wise decisions with your money. The existence of financial literacy in a society helps in making better financial decisions and improves the overall financial well-being of the citizens. As Pakistan strives for economic prosperity, the complexity of financial products continues to rise. According to the State Bank of Pakistan (SBP) as of June 2023, the account base of Pakistan’s banking system, which encompasses commercial and microfinance banks, the branchless banking sector, and Electronic Money Institutions, exceeds approximately 177 million. Of these total accounts, 83 million are unique accounts, which is 60 percent of the 137 million adult population. Currently, in Pakistan, there are 49 million accounts that are owned by women, out of which 29 million are unique accounts. These 29 million unique accounts make up over 43 percent of the female adult population. This data reveals a low level of financial inclusion for women in Pakistan as compared to men. Consequently, the same trend is observed in the case of financial literacy. Also, the lack of adequate financial literacy, among SMEs and young entrepreneurs in Pakistan, is a major contributing factor to the low levels of successful external financing and the absence of long-term financial planning. Given the importance of finance in modern society, lacking financial literacy can damage an individual’s long-term financial success. It is especially important in times when increasingly complex financial products are easily available to a wide range of the population. Financial ignorance carries significant costs. Consumers who do not comprehend the concept of compound interest end up spending more on fees, accumulating larger debts, and facing higher interest rates on loans. Furthermore, they tend to borrow more and save less. Conversely, the advantages of financial literacy are plentiful. Individuals with sound financial skills are better at planning and saving for retirement. Moreover, financially savvy investors are more likely to spread their funds across various ventures to diversify risks. In recognition of the importance of financial literacy and its inherent connection with attaining economic prosperity in Pakistan the SBP organized the inaugural Pakistan Financial Literacy Week (PFLW) under the theme “Financial Inclusion through Digital Means” (Digital Bankari – Fori aur Asaan) from March 4 to 8, 2024. Digital banking is an integral component of the dynamic Green Banking ideology. Under the umbrella of Green Banking, the creation of Digital Financial Literacy can not only ensure economic sustainability but simultaneously attain environmental sustainability through paperless banking operations. Similarly, educating people about digital banking products and services can significantly improve financial inclusion in Pakistan, especially for females. In line with its vision of fostering financial inclusion and attaining economic prosperity in Pakistan, The Bank of Punjab (BOP) established Financial Literacy Camps nationwide to address inquiries and offer hands-on guidance on digital financial services such as RAAST, QR code, Asaan Digital, and Mobile Accounts, etc. The ‘Sikka Baqaida Booklet’ was launched to create financial literacy regarding basic financial concepts in an easy and understandable format. Under the inspirational leadership of President & CEO, Mr Zafar Masud., the BOP is striving to create financial literacy in Pakistan by educating walk-in customers, liaising with various universities, and disseminating relevant information through various communication channels. As per the BOP’s Green Banking vision, ensuring financial inclusion and creating financial literacy will be a year-round activity complemented by the bank’s ESG implementation strategy. Emerging economies can boost financial literacy and inclusion by introducing financial education programs, supporting microfinance institutions, expanding digital financial services, and removing barriers to entry and participation in financial markets. A significant barrier to the attainment of financial inclusion in Pakistan is the fear of using digital banking services. The majority of customers have the misconception that the use of digital banking may lead to loss of money due to identity theft, misuse of information, technology hiccups, lack of documentation or fake smartphone applications. Eliminating these fears by making the customers understand the security features of digital banking, easily and understandably, should be an important aspect of Pakistan’s financial literacy program. As Pakistan strives for economic prosperity, the complexity of financial products continues to rise. Therefore, it has become imperative to equip individuals with the necessary knowledge to make informed economic decisions that serve their best interests. Ultimately, a financially literate population will play a pivotal role in the creation of economic, environmental, and social sustainability in Pakistan. Achieving this objective requires an active and synergistic public-private partnership within Pakistan’s economic ecosystem. a financially literate nation will be an economically prosperous nation. The writer is working as SVP/Head – ESG at The Bank of Punjab. He can be contacted at aasimalibukhari@gmail.com