Aurangzeb seeks roadmap for transition to a digital economy

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a high-level meeting on Tuesday at the Finance Division to discuss a host of measures for advancing Pakistan’s transition to a digital and less cash-dependent economy.

The meeting brought together senior representatives from Pakistan’s financial sector, including commercial banks, development finance institutions (DFIs), regulators, and investment experts who form the core of the Committee established by the minister to craft forward-looking recommendations to support Pakistan’s transition towards a digital and less cash-dependent economy.

Participants engaged in a comprehensive discussion on a series of key proposals aimed at fostering greater adoption of digital payments across the country. The group reached consensus on a range of measures intended to expand access to digital financial services, encourage the use of digital transactions, and reduce reliance on cash in everyday economic activity. Among the core areas of agreement was the need to ensure that digital payment options are widely available and accessible across various sectors, including retail, services, and public sector transactions. The participants supported steps that would encourage broad-based interoperability, leveraging Raast instant payments system in particular, leading to improved consumer choice in using digital payments platforms.

It was also agreed that creating a more level playing field between cash and digital transactions is essential, and that incentive structures should be rebalanced to make digital payments more attractive and cost-effective for both consumers and businesses. The importance of improving cost structures related to digital transaction infrastructure, including merchant acquisition and service provision, was highlighted as a priority to enable wider outreach, especially for small merchants and underserved communities.

Finance Minister Senator Muhammad Aurangzeb welcomed the Committee’s recommendations and emphasised that digitalisation is central to Pakistan’s economic modernisation agenda. He noted that increasing the footprint of digital payments will significantly enhance financial transparency, promote inclusion, and improve efficiency in both public and private sector operations.

The Minister stressed that moving toward a cashless economy is not simply a policy aspiration, but a practical necessity for long-term fiscal resilience, competitiveness, and inclusive growth. “Digitalization is the foundation of a modern financial system. We must move with urgency and coordination to create a payments environment that is inclusive, interoperable, and focused on ease of use for every Pakistani citizen.”

He also underscored the importance of leveraging technology to simplify financial access for individuals and businesses while ensuring policy alignment across stakeholders.

The meeting concluded with a directive from the finance minister for the committee to prepare a detailed and time-bound roadmap for implementation of these initiatives, to be submitted to the Finance Division for further action and policy consideration.

Copyright Business Recorder, 2025