World Bank to help Pakistan head towards becoming a cashless society

The new payment systems strategy intends to boost Pakistan’s GDP by 7 percent and will create 4 million job opportunities by 2025.

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  • The World Bank is committed to help Pakistan to promote a cashless society.
  • During the stabilization phase, Pakistani rupee has become a flexible currency and has functioned well- World Bank President

cashless

National Payment system

The World Bank is committed to help Pakistan to promote a cashless society. The State Bank of Pakistan revealed the first-ever national payment system of the country to introduce a cashless society through simplifying business strategies.

“We have the resources and the drive, the energy to help implement [the strategy and], assist as you implement the national payment systems strategy,” World Bank President David Malpass said. “This move by the central bank is coming at a good time because there has been time to stabilize [the economy] after the start of the new administration. And that stabilization will I think will facilitate growth going forward.”

Pakistani rupee becomes flexible currency

The president of World Bank said during the stabilization phase that Pakistani rupee has become a flexible currency and has functioned well.

“The payment system can be easy to use and affordable, and create solutions for individuals and businesses,” he added.

Furthermore, he said, “This is a real-time kind of launch. Besides, we have looked at and encouraged the National Database Registration Authority (NADRA) to make verification costs minimal and open to facilitate this process. And also the Pakistan Telecommunications Authority can allow for interoperability through the USSD (unstructured supplementary service data) channels.”

Reza Baqir, SBP governor said that we are shifting our attention to the financial sector’s structural areas to bring reforms.

The governor further added that Pakistan is lacking behind when it comes to gender balance in financial inclusion.

“A greater reliance on digital means we have greater documentation of the economy and we have less cash,” he added. “Pakistan is one of the countries that stand up for having a very large ratio of cash to deposits.”

Payment Gateway

Moreover, the SBP is launching a payment gateway within six months. This gateway will help in fast processing and clearings of transactions. Besides in branchless banking agents, electronic money institutions, payment system operators and other non-banking payment players.

Governor of SBP further said that the new payment systems strategy intends to boost Pakistan’s GDP by 7 percent and will create 4 million job opportunities by 2025.


Also See: Pakistan’s Foreign Exchange Reserves Rise By $16m To 7.7b – SBP

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