Walk through any bazaar in Pakistan and one phrase dominates: “cash hi do.” It reflects our financial reality. While the world races toward digital money, Pakistan remains stuck with cash. The problem is not technology. We already have instant payment systems, mobile wallets, digital-only banks, and one of the youngest populations in the region. The real challenge is adoption, trust, and urgency.
The State Bank’s Raast has shown that instant payments work at scale, processing trillions in transactions. Yet most people barely know it exists. Cash still feels safer, simpler, and universally accepted. Unless digital transactions become as common as handing over a hundred-rupee note, Pakistan will continue running two economies: one digital on paper and one cash-based in practice.
The growth of Easypaisa and JazzCash proves that convenience drives adoption. Millions now pay bills, transfer money, and save through them. Easypaisa’s evolution into a licensed digital bank shows that trust does not require marble branches. But wallets must go beyond transfers to provide microloans for shopkeepers, insurance for workers, and savings tools for low-income households.
The growth of Easypaisa and JazzCash proves that convenience drives adoption.
Traditional banks, however, remain slow and outdated. Customers face long waits and rigid systems. Pakistan can learn from Saudi Arabia, where cashless payments became a national priority. STC Pay evolved into STC Bank, and today citizens pay for groceries, utilities, and even government services directly from their phones. The success came not from advanced tech skills but from creating a system that was simple, trusted, and universal.
Some in Pakistan are discussing central bank digital currencies. But before moving toward futuristic models, the basics must work. Government salaries, pensions, welfare payments, and taxes should all be digital by default. If citizens can transact digitally across the board, the state gains better data, reduces leakages, and improves planning. For individuals, it saves time, cuts queues, and increases access to finance.
Digitisation also strikes at the heart of Pakistan’s tax problem. A cash-heavy economy allows income hiding and sales underreporting. Cash leaves no trail. Digital payments create verifiable records, naturally widening the tax net. This is not about punishing small traders but about fairness. Those who earn more should pay more. Digital adoption could recover billions in lost revenue, reducing pressure on honest taxpayers.
Artificial Intelligence can strengthen this shift. AI can spot fraud instantly, automate loan approvals, and build credit histories for vendors who previously had none. Imagine a fruit seller in Lahore who, through digital transactions, qualifies for a small loan to expand her stall. Governments can also use AI to flag irregularities in procurement and subsidies, saving billions.
But AI needs safeguards. Algorithms risk bias, especially against women and low-income groups. Pakistan must set clear rules to protect consumers and ensure transparency. Without oversight, AI could deepen inequalities instead of bridging them.
Skeptics argue that digitisation may exclude the poor, elderly, or rural populations. That risk is real if systems are designed only for smartphones and English speakers. But if services are available in local languages, through text codes, and supported by agent networks, digital finance can become the great equalizer. Many countries have shown that when systems are simple and accessible, adoption outpaces literacy.
So what steps should Pakistan take? First, make all government payments digital. Second, ensure shopkeepers receive free QR codes to encourage use. Third, allow citizens to share financial data voluntarily for cheaper loans. Fourth, finalize AI guidelines and pilot them in lending and fraud detection. Finally, keep small peer-to-peer transfers free while applying fair fees on larger transactions.
Digitisation is not about apps or slogans. It is about making money movement fast, safe, and trusted. When a fruit seller accepts a two-hundred-rupee payment, pays his or her utility bill online, and secures a loan without approaching a moneylender, the economy begins to change. When contractors are paid digitally and invoices are verified through AI, corruption declines. And when cash use falls, so does tax evasion.
Pakistan does not lack technology. It lacks urgency and coordination. Saudi Arabia has shown what is possible when governments prioritize cashless payments: the public and private sectors fall in line. For Pakistan, the choice is clear. Remain stuck in a cash economy that benefits the few, or embrace a digital future that is fair, efficient, and inclusive.
The writer is Digital Comms & PR Practitioner