A widely accepted global definition of literacy is the one used by UNESCO, which lists the key indicators of a ‘literate person’ as someone who can, with understanding, read and write a short, simple statement about their everyday life. This definition is accepted by most international organisations such as the World Bank, UNDP, OECD, etc.). Pakistan boasts a booming population of approximately 250 million (*statistics tend to vary, where some peg this figure at being slightly higher) and is amongst the world’s fifth most populous country with a literacy rate of approximately 60-61% percent. More than half of its population bears a rather young age bracket falling under the age group of 30 years.
Almost everyone in plain sight within the country – be it on the street, a café, a shopping centre or even the wayside kiosk owner (the lay walla), tends to use a mobile phone. Pakistan recorded a staggering 190 million cellular mobile connections in early 2025, which equated to over 70% of its population using the handheld device or the ‘pocket rocket’ from the palm of their hands. In an age where social media can give cause for concern around unmonitored usage, the accessibility of the handheld device can also present a readymade platform for endless opportunity. Digitisation across the planet has given unprecedented tailwinds to the growth of fintech companies, causing the influx of digital banking, mobile wallets, payment gateways, stored value payments, etc. Where bank footfall was previously needed to withdraw/ transfer money, cashless payments in the form of instantaneous money transfers using mobile phones are now the norm.
On the other extreme of the spectrum lies the seemingly sophisticated world of cryptocurrency, P2P networks (lending and crowdfunding) and distributed ledger technology such as blockchain – each of which requires a higher degree of understanding, familiarity and tech savviness. Asset management, trading and related activities (concepts such as robo-advisors where investment decisions are driven by automated wealth advisors), insurtech and crypto assets present key verticals when considering the future drivers of regulatory and governance setups.
Transactions in the cryptocurrency space operate within a largely decentralised digital currency set-up, which is proliferating rapidly and forcing regulators to draw out parameters to harness the limits within which this regime operates. The Pakistan Virtual Asset Regulatory Authority (PVARA) recently emerged onto the cryptocurrency and blockchain governance forefront. Meanwhile, old timer regulators like the State Bank of Pakistan and the Securities & Exchange Commission of Pakistan have already had a head start on trying to saddle both the banking and the non-banking sector under a protective, regulatory umbrella.
Robert Frost depicted ‘miles to go before I sleep’ when penning “Stopping by the Woods on a Snowy Evening”, and that mantra certainly holds true as we continue our journey to conquer the path of the unknown – the endless possibilities posed within the fintech space.
While regulatory activism is a welcome initiative, there are key issues to be considered when analysing how to merge the world of the ordinary Pakistani with that of the digital/ fintech tsunami heading his way to engulf him. One of the most common fears emerges from a lack of trust and understanding. An innocent click on a message link could lead to account takeover, fraud or security/data compromise. Cybersecurity risks pose a significant threat to the fintech sector and often lead to eroding consumer confidence. Digital literacy gaps make it difficult for a large portion of the population to understand new technologies – often resulting in limiting financial inclusion, especially for the unbanked population. Infrastructure dearth caused by a lack of mobile network access, particularly in rural areas where broadband/ internet penetration is low, is yet another obstacle which hampers seamless accessibility. Even cultural and socio-economic barriers pose resistance to change and lead to slow adoption of digital solutions. Resultantly, folks tend to stick to conventional banking methods.
If one were to be brutally honest, there might also be a fair degree of chaos within the fintech regulatory space – one which is in dire need of a single-window set-up where regulators, licensing teams, and technology experts talk to one another. This is not a country-specific impediment but is a rather common feature observed amongst regulators across different jurisdictions. For instance, regulations may be issued only to have licensing become impossible or delayed since the infrastructure/ framework to support the said paraphernalia is either still in the process of being formulated and/or not quite up to speed with what needs to be done to issue timely responses, clarifications or resolutions. Applications and progressive notions are often met at the halfway house, only to find ideas stalling and presenters having to repeat themselves several times over in endeavouring to get their message across to different teams within the same regulatory setup.
Despite the impediments and the challenges, Pakistan has managed to thrive within the rapidly evolving fintech space with over 450 companies (as of November 2025) raising $391 million in venture capital – a feat recognised across print media through various reports and news features. The country also celebrated its seat at the head table amongst the other big players in the global rulemaking on cryptocurrencies and blockchain governance when the PVARA Chairman joined the World Economic Forum’s Steering Committee on Digital Asset Regulations.
Robert Frost depicted ‘miles to go before I sleep’ when penning “Stopping by the Woods on a Snowy Evening”, and that mantra certainly holds true as we continue our journey to conquer the path of the unknown – the endless possibilities posed within the fintech space.
The writer is a Partner (Regulatory, Corporate & Disputes) at a regional law firm with offices in the UAE and Saudi Arabia.