Impacts of Social Capital, Financial Literacy and Financial Inclusion on Economic Growth of a Primary Data Analysis: Evidence from Pakistan Special Focus on Listed Banks

Abstract

This research study which is quantitative in nature, investigates the inter-relation between social capital, financial inclusion, financial literacy, and sustainable development in Pakistan. Data was gathered by running surveys on a diverse group of basic units of Pakistan which was further analyzed utilizing complicated statistical methods like regression modeling. The research stresses on the paramount role of Financial Inclusion among other Sustainable Development goals, with many existing academic literatures strongly stating its ability to create economic stability as well as reducing poverty. Pakistan also gets praised for its efforts to offer financial services, specifically to the deprived and disadvantaged, as one of the critical steps towards the fulfilment of the sustainable development goals. Accordingly, the study pinpoints a role of Financial Literacy in making Sustainable Development as there is a direct relationship between financial literacy and economic welfare. This reveals the urgent need for financial education programs that will help individuals to take better financial decisions based on facts. In addition, although Social Capital is one of the major factors, the respondents consider it less important than Financial Inclusion and Financial Literacy. However, that social capital is generated by community participation is acknowledged as fundamental to the development of collective action and social integration thereby enhancing developmental efforts. In general, this research provides important information on the relationship between Social Capital, Financial Inclusion, Financial Literacy, and Sustainable Development, and promotes integrated approaches that will ensure access to financial services, improve financial literacy, and increase social capital to create inclusive, resilient, and sustainable development paths in Pakistan.