The concept of empowerment has been defined as a form of strength that stems from the self and the community, one that allows individuals to exercise the power to change things that are well beyond their scope. In the wake of International Women’s Day, the concept of women’s empowerment has been generating a lot of attention and discussion on various platforms. Unfortunately, concrete and effective measures for ensuring women’s empowerment are lacking in developing countries like Pakistan. It is vital to understand that women’s empowerment can only be achieved by facilitating the country’s female population in this journey of attaining control over various areas of their lives. This can be made possible by providing them with strength, self-confidence and power by ensuring effective financial inclusion for women. The vision of women’s empowerment cannot be fulfilled without the development of women’s economic empowerment through financial inclusion. Based upon the Financial Inclusion Insights (FII) Survey 2020, the financial inclusion in Pakistan was approx. 21%, which is significantly lower than the countries with similar socioeconomic profiles, i.e., India (78%) and Bangladesh (47%). The situation is further worsened by the gender gap in Pakistan’s financial inclusion ratio. According to the available data, 36% of Pakistan’s adult male population is considered financially included whereas the ratio for adult women is still in the single digits i.e., 7%. The lack of financial inclusion proves to be a major obstacle in the path of women’s empowerment. In this regard, on the 17th of September, 2021, the State Bank of Pakistan (SBP) launched the “Banking on Equality Policy: Reducing the Gender Gap in Financial Inclusion” to enhance women’s financial inclusion in Pakistan. The policy will prove to be a major milestone in shaping the landscape for women’s economic empowerment in Pakistan. This policy aims to achieve 20 million active women-owned accounts by the year 2030 and introduce women-centric financial products & services. Expanded opportunities for women can reduce operational and reputational risk and benefit the economic growth and social cohesion of the country. Gender Bonds can play an important role in this regard by financing various projects related to socioeconomic advancement and the empowerment of women. Globally, Gender Bonds are still at a nascent stage of development and as of March 2020, only 13 gender bonds had been issued worldwide by a variety of entities, including large commercial banks, NGOs and multilateral development banks. On 19th May 2021, the Securities and Exchange Commission of Pakistan (SECP) issued the Gender Bonds Guidelines for financing projects related to women’s economic empowerment. Globally, the majority of Gender Bonds issued have used the ICMA’s Social Bond Principles, the UN’s Sustainable Development Goals (UN-SDGs) 2030, or the UN Women’s Empowerment Principles as reference standards. Different types of Gender bonds may be issued including Financial inclusion gender bonds, Corporate behaviour gender bonds, Multilateral and DFI social and SDG-labelled bonds. The majority of gender bonds issued worldwide to address the financial inclusion of women and female entrepreneurship in emerging markets or access to leadership positions and gender-positive corporate policies in developed markets. Gender Bonds are a type of social or sustainability bond that can prove to be a game-changer for Pakistan’s green economic transformation. As investors have become more sensitive to issues of women’s empowerment, the greater acknowledgement by investors will induce demand for more Gender Bonds and induce more capital from a more diverse set of investors. A key catalyst to this acknowledgement will be a deeper understanding of the impact that Gender Bonds can deliver alongside the financial returns they can generate. A key potential of gender bonds is the creation of bonds that are gender equality-focused but have the use of funds policies that address multiple issues. By diversifying the use of the proceeds framework for gender bonds, issuers may attract a wider investor base who may not have considered Gender Bonds beforehand. For example, Gender Bonds can also play a vital role in the attainment of UN-SDGs 2030. Gender Bonds, by investing in the full and effective participation of women in economic life, also have the potential to support efforts on poverty eradication (UN-SDG # 1), full and productive employment, promotion of sustainable industrial development and decent work (UN-SDG # 8 and 9), peaceful and inclusive societies (UN-SDG # 16). Gender bonds may either be KPI-linked gender bonds or the use of proceeds gender bonds. Pakistan can move forward in the journey of women’s empowerment through the issuance of gender bonds for financing women-centric projects such as the provision of essential services including education and vocational training projects especially in rural areas; healthcare facilities; financing and financial services for women; housing and car financing schemes with low-interest rates; safe and dignified transportation service for females; development of daycare projects. Banks can also provide low-interest-rate financing schemes to women entrepreneurs for green or eco-friendly businesses. The proceeds from the issuance of gender bonds may also be invested in organizations providing equal employment opportunities to females or breaking the glass ceiling with female leadership. Gender bond issuance will have a positive impact over the long term for corporate issuers and national and regional governments because expanded opportunities for women can reduce operational and reputational risk and benefit the economic growth and social cohesion of the country. The Organization of Islamic Cooperation (OIC) is holding the 48th Session of the Council of Foreign Ministers (CFM) in Islamabad, on March 22-23, 2022. Pakistan can use this platform in highlighting the role of Gender Bonds in fulfilling OIC’s commitment to women’s empowerment. The OIC states that women’s issues and empowerment considering the difficulties and challenges they face to obtain their rights is an area of utmost importance. It envisions enhancing the role of women in the comprehensive and sustainable development process through concrete measures to ensure their effective participation at various levels and in leadership and decision-making roles. This vision can be fulfilled by the issuance of Gender Bonds by all the OIC members targeted towards the attainment of Muslim women’s empowerment synergized with social, environmental and economic sustainability of the country. Let us not forget the wisdom of our great leader, Muhammad Ali Jinnah. He said:- “No nation can ever be worthy of its existence that cannot take its women along with men. No struggle can ever succeed without women participating side by side with men. There are two powers in the world. One is the sword and the other the pen. However, there is a third power stronger than both, that of the women.” The writer works as a Chief Manager-Green Banking Officer at Bank AL Habib Limited. He can be contacted at aasimalibukhari @yahoo.com