The growing population of Pakistan and the young demography of the country presents a huge potential for a digital financial setup. Currently, Pakistan houses more than 160 million biometrically-verified mobile connections. Also, there are 58 million mobile wallet accounts. Previously, Pakistan with its National Financial Inclusion Strategy which was created back in 2015 had a target to ensure 65 million digital accounts by next year, after a revision. The government also is currently focusing on working toward digital finance services, especially in the unserved populations. The Covid pandemic acted as a catalyst in adopting digital financial services in the country. There was an increase in the Covid-19 pandemic in using digital measures to make payments and make purchases through the eCommerce market. However, it has been termed that the pandemic simply acted as a temporary catalyst. Even with this fact, there is a huge potential for the finance system to go digital. There was an increase in mobile banking transactions by 50% from 2019 to 2020 and mobile money transactions increased by 34.3% during the same time. The Shift From Traditional To Digital Finance In Pakistan Traditionally, filling Know Your Customer in Pakistan has been time-consuming due to the manual involvement of the officers and the one who is trying to open the bank account. Such a traditional finance setup is most common in the lower-income population. On the other hand, opening an account for a digital financial service is comparatively easier. It only requires a small transactional account. Once verified, the user can start doing instant fees. However, it is important to have a good internet connection for such instant transactions. You can check the current internet either on Speed Test or PTCL. The first step toward digital finance was taken by EasyPaisa who worked towards creating EasyPaisa. After that, the number of players that entered the digital finance ecosystem of Pakistan gradually increased. Currently, Easypaisa and JazzCash serve more than 70% of the branchless banking users. The progress by the players has been commendable in connecting the people of the dislocated locations. How Pakistan can move even further for producing cashless economy? The potential of digital finance in Pakistan is approximately $36 billion valuations. However, to reach that potential, it is important for Pakistan to make a better commitment, and work on developing a faster payment gateway along with lower costs and fast-track licensing of the fintech sector. If digital payment in Pakistan is increased the GDP of the country will expand by 7% and further it will create more than four million job opportunities along with mobilization of $250 billion in deposits. Pakistan is evolving from traditional finance into digital finance, however, the entire process can be sped fast by focusing on the literacy rate of the country along with reducing the reliance of the population on cash. It is estimated that 213 million will be shifting to digital payment within the next year. Digital payment in Pakistan can be accelerated by working on providing customers with a retail payments gateway along with supporting the fintech sector. Currently, Pakistan is on its way to going through a digital financial revolution, but that will require a change in the behaviour of the people for their very own benefit. Along with that, the banking system should also have the desire to innovate. There are three ways in which the country can move fast forward to a cashless economy. Firstly, digital purchases should be made available in local grocery stores or Kirana shops with the help of a scalable solution. Most people use cash in these stores, and substituting cash with digital payment can help escalate the process. Secondly, fintech and commercial banks should partner with each other to create applications for supporting such scalable solutions. Thirdly, there should be government support for providing an environment to support a cashless economy. Digital payment is extremely crucial in advancing the economic growth of the country in a sustainable manner. This will also help the country to help in ensuring the financial inclusivity of the people. Digital payment will also be helpful for the government in overcoming the hurdles that a cash-dominant economy usually faces. Currently, Pakistan is also working towards rolling out social welfare initiatives with the help of a digital payment system. Developing a digital economy will help to benefit all the residents of Pakistan.