Pakistan is a country with a growing digital presence, as more people access the internet and use various online platforms for payments, shopping, education, entertainment, and socializing. According to DataReportal, Pakistan had 87.35 million internet users in January 2023, which is 36.7 percent of the total population. The number of internet users increased by 5.4 percent between 2022 and 2023, indicating a steady rise in digital adoption.
One of the main drivers of Pakistan’s digital transformation is the collaboration between banks and fintech companies, which has resulted in efficient, accessible, and user-friendly digital payment systems. The State Bank of Pakistan (SBP), the country’s central bank, has been promoting the digitalization of payment systems and expects it to boost Pakistan’s GDP by 7 percent, create four million jobs, and result in new deposits of $263 billion by 2025.
The SBP reported that e-banking transactions increased by 4.3 percent in volume and 11.2 percent in value in the third quarter of fiscal year 2023 (January-March). Internet and mobile phone banking transactions also grew by 9.9 percent in volume and 19.1 percent in value during the same period. Moreover, Raast, Pakistan’s first instant payment system, saw a significant increase in users and transactions for online person-to-person funds transfers.
Another factor that contributes to Pakistan’s digital footprint is the increasing number of online platforms and shopping avenues, which has led to more transactions through point-of-sale (PoS) devices. The SBP reported that PoS transactions increased by 6.8 percent in volume and 10.1 percent in value in the third quarter of fiscal year 2023. However, ATM transactions remained similar to the previous quarter in terms of volume but increased by 6 percent in value.
Pakistan’s digital footprint is expected to grow further as more people get access to affordable internet services, smartphones, and digital literacy. The government and the private sector are also investing in digital infrastructure, innovation, and inclusion to support the country’s digital economy and society.
Sources:
: DataReportal (2023). Digital 2023: Pakistan — DataReportal – Global Digital Insights. Retrieved from https://datareportal.com/reports/digital-2023-pakistan
: Arab News PK (2023). Pakistan’s digital footprint gains momentum with rising e-banking, PoS transactions — central bank. Retrieved from https://www.arabnews.pk/node/2312466/pakistan
