What is the cost of cash?

Article Type

Article

Description

The estimated total direct cost of managing cash in Pakistan is approximately Rs76 billion annually — a figure that continues to rise. The increasing reliance on cash transactions places a drag on economic efficiency, capital formation, and revenue growth. Large denominations in circulation and frequent withdrawals drive up printing, handling, and operational costs. The State Bank of Pakistan’s financial statements show substantial resources devoted to currency production and ATM operations. Experts advocate for a gradual shift towards digital payments, structural reduction in large cash denominations, and incentivizing transactions through formal banking channels to lower these costs. Without such reforms, the country will continue incurring billions on maintaining an inefficient cash-based economy.

Publication Source

DAWN

Publication Date

3-17-2025

Pages

1

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