An era of financial transformation

Article Type

Article

Description

Pakistan’s digital financial sector is experiencing rapid growth, with the State Bank of Pakistan’s March 2025 report highlighting a record 2.4 billion retail transactions worth Rs164 trillion in Q1 2025. Mobile and internet banking are driving adoption, with mobile apps processing 1.7 billion transactions worth Rs27 trillion. SBP’s Raast Instant Payment System has become a key driver, particularly in P2P transfers (368m transactions worth Rs8tr) and expanding P2M services (700,000+ merchants onboarded). E-commerce and QR-based merchant digitisation also surged, reflecting grassroots acceptance of digital finance. Despite strong momentum, challenges remain, including digital literacy gaps, patchy internet access, cybersecurity risks, and limited Shariah-compliant offerings. The author suggests Pakistan could strengthen financial inclusion by adopting models like India’s UPI and Nigeria’s NIBSS, coupled with policy support, private-sector collaboration, and awareness campaigns, to establish itself as a South Asian leader in digital finance.

Publication Source

DAWN

Publication Date

8-11-2025

Pages

04

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