Pakistan’s digital finance landscape has reached a significant milestone. The second quarter of fiscal year 2024 (October-December 2023) witnessed a record-breaking 1 billion branchless banking transactions, marking a 12% increase compared to the previous quarter. This surge signifies a clear shift towards digital financial services and a changing landscape of financial management in the country.
Data from the State Bank of Pakistan reveals that fund transfers reign supreme, constituting 43% of all branchless banking transactions. Bill payments and mobile top-ups follow closely behind, each accounting for 22% of the total. With over 64.12 million active accounts and a staggering 114 million registered accounts, it’s evident that more and more people are embracing the convenience and accessibility of digital financial tools.
The average daily transactions have also witnessed an upward trend, rising by 11.7% to reach 12 million compared to the previous quarter. This further emphasizes the growing popularity of digital financial solutions in Pakistan.
However, to maintain this momentum and unlock the full potential of the digital economy, Pakistan needs to prioritize investments in critical areas. Increased smartphone penetration, currently below 60%, is essential. Furthermore, affordable, high-quality internet with consistent speed is crucial. Policy changes promoting accessible internet spectrum are necessary to achieve this.
Building robust digital infrastructure, including investments in fiber networks, internet towers, and data centers, will be a cornerstone for future growth. Expanding the availability of cost-effective payment and transfer methods like QR codes will discourage reliance on cash and promote a more digital economy.
Finally, implementing policies that encourage opening bank accounts for all adults, with incentives for using these accounts for even small transactions, can significantly reduce reliance on cash and improve financial documentation within the country. By addressing these areas, Pakistan can foster a thriving digital ecosystem, attract investments, and empower its citizens through the transformative power of digital financial solutions.
