This research is aimed at assessing the role of Qardul-Hasan in enhancing financial Inclusion; a case study of Akhuwat, Pakistan. Survey research design was used and primary data was obtained using structured questionnaire. The study adopted the purposive and clustered sampling technique with 380 sample size in an attempt to achieve the study objectives. Out of the 380 questionnaires distributed, 300 were returned which is about 78%. The data was analyzed using descriptive (mean, standard deviation, as well as, the minimum and maximum values) and inferential statistics (using Structural Equation Model (SEM). The result obtained showed that Akhuwat Qardul-Hasan has a significant role in enhancing financial inclusion of the beneficiaries in Pakistan. Finally, the study recommends that the Pakistan government should focus in making Government-to-Person (G2P) social cash transfer payments into the formal account of poor people, young people, women, and elderly people as this may encourage other poor people, young people, women, and elderly people to join the formal financial sector to own a formal account to take advantage of the G2P social cash transfer benefits, thereby, increasing the rate of financial inclusion for vulnerable groups.