by Mariam Raheem

ISLAMABAD, Nov.18 (Gwadar pro) - “After stabilization of the macro-economic policy, Pakistan is rapidly moving towards reforming its financial industry. One of its key components is digitization of the financial industry. We recently invited the President of World Bank to launch our National Payment Strategy, a strategy that lays out the vision of future of financial and banking industry in Pakistan,” this was underlined by Reza Baqir, Governor of State Bank of Pakistan, while speaking at a virtual seminar arranged by the Institute of Policy Reforms today. The Seminar was titled “Accelerating Economic Growth: Digitizing Payments for Fast and Reliable Transactions”.

“Pakistan with its huge population, talented people, and improvement in the regulatory framework for digital payments has a very strong potential for its mobile and digital industry to flourish in the years ahead. In this process of transformation, Pakistan can learn a lot from its close friend China”, this was stated by Mick Wu of FuiouPay. Wu also shared experiences of China in making rapid strides in introducing e-commerce system in the Chinese economy.

Speaking at the Seminar, Sohail Rajput, Special Secretary of Ministry of Commerce highlighted that the Pakistani Government was paying special attention to revamping and reforming its e-commerce policy. Mr. Rajput underlined that it was believed that USD 36 billion can be generated in the GDP growth by such reforms.

Sohail added that the Pakistani Government had established a dedicated National E-Commerce Council, which was mandated to frame competitive regulations for e-commerce industry. Additionally a Code of Conduct was also being established for market places to facilitate cross-border e-commerce initiatives. To simplify provincial taxes structure, a system of harmonization of various taxes was being created to promote financial digitization as well as financial inclusion.

Irfan Wahab Khan, CEO of Telenor underscored that Pakistan with its large population base and consumer needs must graduate its economy from cash-economy to digital economy. To introduce digital economy in Pakistan, the payment system needed to be competitive, secure and stable. Currently, 70% of people was not banked and Telenor was trying to introduce technology through which a large percentage of the population could be included into the mobile banking sector. Pakistan now has less than 50% of smart phones, which hampers ability of Pakistanis to benefit from modern tools of the banking industry, added Wahab.

Managing Director of Daraz, Ehsan Saya, speaking at the occasion said that Daraz has the largest e-commerce market in Pakistan. He stressed that “To improvise its financial digitization, Pakistan must improve its logistical infrastructure, enhance customer’s trust and promote digital banking in the country. These measures will reduce transaction costs.”