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ISLAMABAD: Chief Executive Officer (CEO) Jazz and Chairman Telecom Operators Association Aamir Ibrahim outlined several key policy interventions aimed at accelerating the adoption of digital financial services.

Talking to media, Ibrahim emphasised the transformative potential of a cashless society, stating, “A cashless society is not just about convenience; it’s a catalyst for unlocking our nation’s full potential. By moving towards a digital economy, we can foster financial inclusion, improve tax compliance by documenting the economy, and create countless economic opportunities for millions of Pakistanis.”

The Pakistan Business Council (PBC) and the Overseas Investors Chambers of Commerce and Industry (OICCI) have thrown their weight behind efforts to transform Pakistan into a cashless society.

Both organisations endorsed proposals by Jazz CEO to accelerate digital financial inclusion and boost economic growth.

In a tweet, the PBC highlighted the useful policy interventions proposed by Aamir to help the country catchup with its regional peers for financial inclusion.

OICCI also supported Aamir’s views, highlighting the importance of digital transactions through mandatory digital invoicing, and incentivizing fintech and merchants. OICCI termed digitization crucial for reducing regulatory bottlenecks and improving the ease of doing business in Pakistan.

Reportedly, Prime Minister Shehbaz Sharif is also quite eager on the subject and recently a dedicated committee has been formed under the chairmanship of Ali Pervaiz Malik, Minister of State for Finance and Revenue on promotion of a cashless economy.

CEO Jazz urged the need to ensure universal access by integrating smartphones, SIM cards, and digital wallets or bank accounts into the national identity card issuance process, potentially funded through the Universal Service Fund.

To encourage digital payments, Aamir suggested reducing taxes on customers and merchants, citing the example of a reduced sales tax rate on digital payments compared to cash transactions in restaurants and eateries in Islamabad. He highlighted the critical role of SMEs in Pakistan’s economy, noting that approximately three million SMEs have limited access to commercial funding. To address this, he proposed allocating 15-20 percent of commercial funding to support these enterprises and their supply chains.

Aamir advocated for the public sector to lead by example by mandating organizations like Utility Stores Corporation, Central Directorate of National Savings, and Pakistan Post to prioritise digital payments and phase out cash transactions. He also suggested tackling a key barrier to a cashless society by aiming to expand the merchant base to over a million-digital payment-accepting retail stores by 2030. Additionally, he recommended updating the eCommerce Policy within six months to shift away from Cash on Delivery for eCommerce transactions and imposing a cap on cash payments for basic commodities.

Aamir emphasised the need to digitise remittances by enabling mobile wallets to receive funds from around the globe. By bypassing traditional banking infrastructure, digital remittances can reach even the most remote and underserved populations, empowering them to participate fully in the formal financial system.

Aamir also discussed Pakistan’s positive trajectory in digital financial inclusion, commending the pivotal role played by the State Bank of Pakistan, the Pakistan Telecommunication Authority, and the Securities and Exchange Commission of Pakistan in promoting digital financial inclusion.

Copyright Business Recorder, 2024

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usman Aug 07, 2024 02:24pm
Question is how will the corrupt loot if everything will be digiatlised.so this wont e happening anytime soon.
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