
Pakistan's governance system faces a range of persistent issues that continue to undermine public trust and efficiency. Inaccurate or missing identity records leave millions without access to basic services, while outdated paper-based systems in healthcare and legal institutions lead to lost records, delays and mismanagement. Elections are frequently marred by allegations of fraud, low transparency and limited access for overseas voters, raising doubts about their legitimacy.
Corruption remains a deeply entrenched problem, with opaque financial systems allowing for the misuse of public funds and limited accountability. In late 2018, officials in the federal Finance Ministry removed a critical dissent note from a document outlining Rs1.253 trillion in contingent liabilities. From land disputes caused by poorly maintained property records to the misallocation of subsidies and development budgets, administrative inefficiencies affect both the credibility of public institutions and the quality of life for citizens. These are not isolated issues, they are interconnected challenges that demand systemic reform.
In recent years, blockchain technology has evolved from a platform just for cryptocurrency into something way more versatile with numerous applications. Blockchain is like a digital notebook that keeps a record of transactions. But instead of being kept in one place, it's shared across many computers around the world. Blockchain has certain key features that have played a vital role in its growing popularity. Some features are:
Decentralisation: Blockchain doesn't require the approval of regulatory authority such as a government or a bank to go forward with transactions, but rather the consensus of the users. This results in a smoother, more efficient system for transactions.
Immutability: Once data has been added to the ledger, it's nearly impossible to change.
Transparency: Most blockchains are public, making the transaction history visible and transparent for anyone who wishes to view it.
Governments around the world are increasingly adopting blockchain technology to power large-scale systems such as voting, healthcare and digital identity verification. Countries like the UAE, Estonia, Sweden and the UK, as well as several developing nations, have already begun integrating blockchain into their public infrastructure to enhance transparency, security and efficiency. So we may ask, should Pakistan follow the same direction?
Blockchain technology can be used to address Pakistan's real-time administration problems and revolutionise governance and public services across multiple domains. In Digital Identity and Citizen Records, it can enable the issuance of secure, tamper-proof digital IDs in partnership with NADRA. For E-voting, blockchain can be utilised to conduct secure and transparent elections, significantly reducing the possibility of electoral fraud while also facilitating easier voting for overseas Pakistanis.
In Healthcare and Medical Records, blockchain allows patient data to be securely stored and shared between hospitals, which is especially beneficial during emergency situations where immediate access to medical history is crucial. Similarly, for Financial Records, it may help prevent corruption and malpractices by making the financial data of government officials publicly accessible and immutable.
While many Pakistan's administrative issues can be dealt with through blockchain technologies, it also offers several other potential economic social benefits:
Adopting blockchain technology in Pakistan holds significant potential for economic and social advancement. In terms of attracting foreign investments, taking a major step into blockchain and digital development positions Pakistan as a promising hub for technological innovation, an emerging market and a forward-thinking digital economy.
Additionally, creating jobs through the growth of a blockchain sector would open up a wide range of high-demand careers for Pakistan's youth, including roles in software development, blockchain engineering, cybersecurity, data analysis and digital infrastructure. Furthermore, enhancing trust in governance is another critical benefit, as blockchain's inherent transparency can help restore and strengthen public confidence in government institutions.
Despite its benefits, blockchain technology isn't without its fair share of hurdles. Its encrypted, immutable nature makes data changes nearly impossible, which ensures security but can also lock in mistakes or fraud if not properly verified. The high cost of implementation and maintenance is also a major concern, especially in countries like Pakistan. Public concern intensified when the Minister for Crypto & Blockchain, Bilal Bin Saqib, announced allocation of 2,000 MW of electricity for crypto miners, sparking criticism over energy prioritisation in a country already facing power shortages.
To mitigate these risks, Pakistan should take a cautious, phased approach before adopting blockchain impulsively without much thought.
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