Telecom Operators Advocate for Policy Changes to Boost Pakistan Cashless Economy

In a significant development, TOA has also submitted a comprehensive approach to expedite the shift towards a digital economy. Essential suggestions include integrating smartphones, SIM cards, digital wallets, and bank accounts with the National Database and Registration Authority (NADRA) to provide universal access to digital financial services.

Ibrahim, who also leads Jazz and Mobilink Microfinance Bank, highlighted the potential of a cashless society to boost economic growth, enhance tax compliance, and improve transparency. The association is endorsing cross-industry collaboration. Moreover, it is proposing the establishment of a dedicated forum to monitor progress, recommend policies, and handle challenges associated with the shift.

One of the TOA’s major suggestions is the reduction of taxes on digital transactions to foster their use over cash payments. According to TOA, a pilot program in Islamabad can be launched to serve as a testing ground for this initiative. Additionally, TOA suggested some policy revisions to limit cash-on-delivery transactions in e-commerce, suggesting a cap of Rs 3,000 for cash payments on fundamental goods.

The State Bank of Pakistan, the Pakistan Telecommunication Authority, and the Securities and Exchange Commission of Pakistan need to play a significant role in driving these changes. These commodities should focus on developing supportive policies that promote digital and financial inclusion.

The association advises government institutions like the Utility Stores Corporation, Central Directorate of National Savings, and Pakistan Post to prioritize digital payments and slowly phase out cash transactions. Another key goal is to expand the number of retail outlets accepting digital payments to three million by 2030. By welcoming these changes, Pakistan can effectively harness technology to drive economic development and align with global trends in digital finance.