Digitalization accelerates economic growth: Zubair

Pakistan has done a massive job of deploying digital technology which significantly supports accelerating economic growth to the set target of six percent this year and higher one in the years to come, experts said on Thursday. "Digitalization is to accelerate economic growth," Mohammad Zubair, Governor of Sindh stated.
He was addressing the 11th International Mobile Commerce Conference 2018. The one-day annual conference was organized by Total Communications with the support of State Bank of Pakistan, Pakistan Telecommunication Authority and 1Link. "Next level of economic achievement cannot take place if ignoring this side (digitalization of the economy)," he said.
Pakistan has successfully deployed 3G/4G mobile internet infrastructure in the last four years. Four cellular phone companies are providing concerned services which are key to the digitalization of the economy. The time is not far when the country would be testing the most fasted mobile internet service - 5G. The country is a home of over 200 million people. Half of the population is using mobile phone (120 million active SIMs); while one-fourth of the population is using smartphones which (50 million phones) are 3G/4G compatible. Moreover, over 70 million people belong to the vibrant middle-income group, which is the key to the digital economic growth.
Zubair, who is also a key member of economic team of the federal government in the office, said that the technology in place is about to get people living in rural areas involved into economic growth. "The technology is going to reduce the gap between rich and poor and narrow down rural and urban divide and that will be the real economic growth," he said. "Public and private sectors must work together for the national cause (digital economy," he said.
Syed Samar Hasnain, Executive Director Development & Finance Group, SBP said the central bank makes sure that all the required resources, including the financial ones, remain available for mobile commerce and digital economic growth. He said the number of branchless banking accounts has increased by over 21% to 33 million in July-September 2017 quarter against 27 million in the previous quarter of April-June 2017.
Syed Irfan Ali, Executive Director, Banking Policy & Regulations Group, SBP said the central bank is targeted to increase number of bank accounts to 100 million by 2020. The branchless banking would provide the much needed support in achieving the financial inclusion goal under SBP's National Financial Inclusion Strategy 2015. Nadeem Hussain, Founder & Coach, Planet N Group of Companies said that a large amount of currency remains out of the banking system while fintechs can bring the amount into the system and help documenting the economy.
"Printed currency notes worth Rs 3 trillion are in no bank account," he said, adding Ant Financial, which is part of the Chinese ecommerce giant Alibaba Group, is going to revolutionize the digital economy in Pakistan. Ant Financial has entered into Pakistan by investing $185 million in Telenor Microfinance Bank a couple of days ago. Also, three companies have recently started offering 'nano (small) credit' by using algorithm technology. Hasnain Sheikh, Chairman and CEO, Inov8 Limited said FonePay would offer first loan in next quarter.
Najeeb Agrawalla, CEO, 1Link said that Pakistan has become 28th country at world of launching domestic payment scheme called PayPak. Muhammad Yahya Khan, Group Head, Digital & Branchless Banking, Bank Alffalah and Ali Imran Khan, Head of Branchless Banking & Digital Initiatives, Meezan Bank also spoke on the occasion. The conference also featured four panel discussions on topics like move from conventional to digital merchant acquiring, fireside chat: digital banking, the dawn of digital lending in Pakistan and how can financial institutions help promote e-commerce in Pakistan.-PR