Islamabad, Pakistan – Prime Minister Shahbaz Sharif has called on all provincial governments, as well as the administrations of Gilgit-Baltistan and Azad Jammu and Kashmir (AJK), to fully support and collaborate with the federal government in its efforts to implement a comprehensive and nationwide Digitization Transformation Plan. Stressing the importance of moving towards a cashless and digital economy, he highlighted the need for inclusive dialogue and meaningful cooperation between the federal and provincial tiers of government to ensure successful and timely implementation.
The Government’s Vision for a Digital Pakistan
During a high-level meeting focused on transitioning Pakistan to a digital and cashless economy, Prime Minister Shahbaz Sharif reiterated his administration’s commitment to fostering digital payments and electronic fund transfers. He emphasized that this shift would not only enhance financial transparency but also offer widespread benefits to citizens, businesses, and government institutions.
“Our goal is to digitize the economy in a way that makes financial transactions seamless, secure, and inclusive, without imposing any additional financial burden on the public,” said Prime Minister Shahbaz Sharif.
The Prime Minister stated that the Digitization Transformation Plan is designed with the core objective of facilitating ease of doing business and making public service delivery more efficient through technology-driven solutions.
Benefits of a Cashless and Digital Economy
Transitioning to a cashless economy is not merely a trend; it is a critical necessity in today’s rapidly evolving financial landscape. Prime Minister Sharif outlined several key benefits of adopting a digital economy:
1. Enhanced Transparency
The digitization of transactions is a vital tool in the fight against corruption and tax evasion. With every transaction recorded electronically, the government can better monitor financial flows and ensure accountability across all sectors.
2. Financial Inclusion
Digital financial services have the potential to bring millions of unbanked individuals into the formal economy, especially in rural and underserved areas. By leveraging mobile banking and fintech platforms, the government aims to democratize access to financial services.
3. Economic Efficiency
Digital payments reduce transaction costs, increase efficiency, and save time. This is particularly beneficial for businesses and government agencies dealing with high volumes of financial transactions.
4. Improved Public Service Delivery
From disbursing pensions and social welfare payments to collecting taxes and utility bills, a digitized financial infrastructure enables faster, error-free, and more secure service delivery.
5. Boost to E-Commerce and Innovation
A robust digital payment ecosystem lays the foundation for the growth of e-commerce, digital startups, and innovation-driven enterprises that can contribute significantly to Pakistan’s GDP.
Need for Intergovernmental Cooperation
Shahbaz Sharif highlighted that while the federal government is steering the digital economy initiative, its success hinges upon the active participation and commitment of provincial administrations.
“It is imperative that all provincial governments, along with the governments of Gilgit-Baltistan and Azad Kashmir, work hand-in-hand with the federal leadership to ensure that the benefits of digitization reach every corner of Pakistan,” he emphasized.
The Prime Minister also pointed out that since provincial governments manage a significant portion of public services, their alignment with the national digitization strategy is crucial for integrated implementation.
Key Directives from the Prime Minister
In the meeting, several important directives were issued by the Prime Minister to expedite the digital transformation process:
1. Streamlining the Digitization Plan
He instructed all relevant ministries and departments to refine the Digitization Transformation Plan, ensuring it is efficient, goal-oriented, and time-bound.
2. Timely Implementation
The Prime Minister emphasized the importance of adhering to the established timelines, warning that delays would undermine the credibility and effectiveness of the entire initiative.
3. Public Awareness Campaigns
Recognizing the role of public awareness in facilitating the transition, he called for nationwide educational campaigns to inform citizens about the advantages of digital payments and how to use digital platforms securely.
4. Strengthening Cybersecurity Measures
He also highlighted the importance of ensuring robust cybersecurity frameworks to protect user data and build public trust in digital systems.
Digital Payment Infrastructure in Pakistan: Current Landscape
Pakistan has made notable progress in building a digital financial infrastructure, yet considerable work remains to be done. Some of the developments so far include:
State Bank Initiatives
The State Bank of Pakistan (SBP) has launched several initiatives to promote digital payments, including:
- Raast – Pakistan’s Instant Payment System: Introduced to enable secure and immediate money transfers between individuals, businesses, and government entities.
- Digital Banking Framework: SBP has issued licenses to digital banks and fintechs to broaden financial access.
Mobile Wallets and Fintech Growth
With over 100 million mobile phone users and an increasing number of mobile wallets like JazzCash, Easypaisa, and NayaPay, the digital ecosystem in Pakistan is expanding rapidly. However, many rural and semi-urban areas still lack access to these services.
NADRA’s Role in Digital Identity
The National Database and Registration Authority (NADRA) is playing a vital role in digital identity management, which is essential for secure financial transactions and digital service delivery.
Challenges to a Fully Digital Economy
While the government’s ambition is commendable, the path to a cashless society in Pakistan is fraught with challenges that need immediate attention:
1. Digital Literacy
A large segment of the population lacks the necessary skills to use digital platforms, particularly in rural areas and among the elderly.
2. Internet Access and Connectivity
Reliable internet access remains inconsistent in remote areas, making it difficult to deploy digital financial services effectively.
3. Trust Deficit
There is a general mistrust among the public regarding digital transactions due to concerns about fraud, privacy, and cybercrime.
4. Institutional Fragmentation
Coordination between federal, provincial, and local governments, along with various departments and regulatory bodies, remains weak, impeding seamless execution.
The Role of Provinces in Driving Digital Transformation
Provincial governments have the mandate and capacity to play a transformative role in this initiative by:
- Digitizing Local Government Services: Such as land records, tax collection, and municipal services.
- Promoting Digital Literacy: By integrating digital skills training in educational institutions and through community outreach.
- Enabling Fintech at the Grassroots Level: Through partnerships with telecom operators, banks, and technology providers.
Several provinces have already begun implementing their own digital programs. For example:
- Punjab’s e-Pay Platform: Offers payment solutions for over 20 government services.
- Sindh’s Automation of Revenue Services: Is helping reduce manual intervention in property records.
Looking Ahead: A Roadmap for Digital Transformation
Prime Minister Shahbaz Sharif emphasized that moving toward a cashless economy is not an end in itself, but a stepping stone towards creating a more transparent, efficient, and inclusive society.
To achieve this, a structured and collaborative roadmap is essential. Key steps include:
- Strengthening interprovincial and interagency coordination.
- Building digital infrastructure in underserved areas.
- Incentivizing businesses to adopt digital payment systems.
- Establishing a clear legal and regulatory framework to govern digital transactions.
- Ensuring consumer protection and data privacy laws are enforced rigorously.
Conclusion: A Unified Effort for a Digital Future
Prime Minister Shahbaz Sharif’s call for provincial cooperation in implementing the Digitization Transformation Plan underscores the urgency and significance of creating a cashless economy in Pakistan. With the right policies, collaborative governance, and public engagement, Pakistan can accelerate its journey toward becoming a digitally empowered and economically vibrant nation.
For this vision to materialize, all stakeholders—including federal and provincial governments, private sector players, civil society, and the public—must come together with shared purpose and commitment.
