PRIME Minister Shehbaz Sharif has directed the authorities to prepare a clear roadmap and time-bound targets for establishing a 100 per cent digital payments system in the country. The initiative aims to promote a cashless economy, improve transparency, reduce the circulation of undocumented money and make financial transactions faster, easier and more efficient. It can also help bring more people into the formal financial system and strengthen economic documentation.
However, turning this vision into reality requires addressing several practical challenges. Ensuring nationwide internet access and providing people with easy access to technology are essential. At present, reliable internet connectivity remains a major obstacle in different parts of the country. Several rural, remote and underdeveloped areas either have no internet access or suffer from poor and unreliable services. Even where connectivity is available, internet services are sometimes suspended for various reasons, disrupting routine activities and business transactions. The government must, therefore, prioritize expanding broadband and mobile internet coverage, improving service quality and ensuring continuity of services. Without this basic infrastructure, the benefits of a cashless economy will remain beyond the reach of a considerable section of the population. Equally important is public confidence in digital financial transactions. Many people remain reluctant to use online payment systems because of the risk of cyber fraud, unauthorized access, account theft and financial scams. The fear of losing hard-earned money through online fraud can discourage people from embracing digital platforms. Banks, payment service providers and relevant regulatory authorities must strengthen security measures, introduce effective safeguards and ensure swift action against fraudulent activities. A reliable mechanism for reporting complaints and recovering money lost through fraud is also necessary. Furthermore, digital literacy must be promoted, particularly among people unfamiliar with online banking and payment applications. Small businesses, shopkeepers and ordinary citizens should be encouraged and guided to adopt digital payment methods.
