In recent years, digital money and payment systems have become significant tools for improving the tracking of economic transactions and the documentation of the economy globally. Pakistan, like many other nations, is gradually realising the importance of digital payment channels to prevent the expansion of its undocumented economy.
This growing acceptance is driven by increased smartphone penetration, 3G/4G internet availability, expanding e-commerce, and government digitisation efforts. Digital financial tools—mobile wallets, digital payment gateways, and central bank digital currencies—offer a tractable path to widening Pakistan’s formal economic base, boosting tax compliance, and bringing millions of unbanked citizens into the financial system. The policy challenge lies in building inclusive digital infrastructure while addressing systemic barriers to account access for low-income populations.
Read the full article on Business Recorder (Published 19 August 2023).