The State Bank's announcement that all federal and provincial government payments will be digitised by June 2026 is a landmark development. Done right, such a transition could inject much-needed transparency into public finances and cut leakages while also widening financial inclusion. But as with all bold initiatives, the real test lies not in policy pronouncements but in execution.
At present, only two banks have launched digital banking services, while the government has set an ambitious target of raising the number of digital merchants from a mere 5,000 to two million within a year. This pace of expansion will require regulatory nudges as well as a society-wide shift in attitudes and capacities. For millions of citizens and traders, digital literacy remains minimal. Unless consumers and government officials alike are equipped with the skills to use these platforms, the exercise risks becoming a hollow formality.
There is also the matter of safety. Around the world, the growth of digital payments has been accompanied by a surge in scams and cyberattacks. Pakistan, with its patchy record on consumer protection and cyber enforcement, is particularly vulnerable. Fraudsters will be quick to exploit gaps in awareness, and the absence of effective redressal mechanisms could erode public confidence before the system even takes root.
If pursued with prudence — through investment in cybersecurity, widespread public awareness campaigns and strong regulatory oversight — this shift can reshape Pakistan's financial landscape. But if pushed through without adequate safeguards, the state risks creating a digital façade riddled with vulnerabilities. The deadline of June 2026 is approaching fast. For this transition to succeed, the focus must be as much on building resilience as it is on achieving numbers.
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