Economy needs digital shift, say banking experts

Amid growing concerns over Pakistan’s cash-dominated economy, bankers at a recent summit in Karachi called for a comprehensive digital policy to complement fiscal and monetary policies, paving the way for a more inclusive financial system. While Pakistan’s banking sector remains highly profitable due to heavy investments in government securities, speakers at the summit emphasised the urgent need to connect the financial system with society. They argued that a large portion of Pakistan’s population remains excluded from banking services, limiting economic growth. Speakers noted that the speedy digitisation of payment systems is essential for financial inclusion, yet digital payments account for only 20 per cent of transactions in Pakistan.