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Business Recorder
29-07-2025
- Business
- Business Recorder
Digitisation and cashless economy: Major hurdles impede govt's push
ISLAMABAD: Lack of infrastructure, affordability, legislation and cyber threats are among the major hindrances in realizing government's digitisation and cashless economy vision. This was the crux of background discussion with government officials, sector experts and international organizations report. Parvez Iftikhar, international consultant on Information & Communication Technology (ICT) Policy and Regulation told Business Recorder that many rural and underserved areas still lack reliable internet, electricity, and mobile connectivity. Without these basics, digital payment systems cannot function effectively. He further said that high cost of smartphones, data plans, and digital devices make it difficult for low-income groups to participate. Even point-of-sale (POS) machines are scarce among small retailers. Iftikhar said the legal framework is still catching up. While the government is pushing QR code payments and digital mandates, enforcement and clarity around digital taxation and compliance remain weak, he added. He said that trust, awareness and data protections are also among the major challenges to digitization. The Ministry of Information Technology and Telecommunications is working on the Personal Data Protection Bill, envisaging to regulate the collection, processing, use, disclosure, and transfer of personal data and additionally provides a data protection mechanism including the offences concerning the violation of data privacy rights of an individual for the last five years. However, the required legislation is yet to be completed, he added. Government officials said that many people still perceive cash as safer and more convenient. Fear of fraud, lack of awareness, and limited tech skills discourage adoption, adding that merchants worry that digital payments will expose them to tax scrutiny. Further, officials said that online banking as well as fraud with BISP beneficiaries resulted in trust deficit, which needs to be overcome through proper legislation and awareness. Chief Executive Officer (CEO) Jazz Aamir Ibrahim told Business Recorder that despite strong growth in digital payments, Pakistan's transition to a cashless economy still faces structural challenges—particularly low smartphone penetration, usage gaps among women and rural populations, and deep-rooted reliance on cash in retail. He said many merchants are hesitant to adopt digital channels due to compliance concerns, while consumers often lack the trust or incentive to move away from cash. 'I'm encouraged to see the government's recent action plan moving in this direction, with a balanced focus on enablement, awareness, and accountability. With coordinated execution and a strong push for financial literacy, we have a real opportunity to drive meaningful progress toward a more inclusive and future-ready digital economy,' Ibrahim added. McKinsey Global Institute reports that Pakistan can experience an increase in its GDP by a cumulative seven percentage points (roughly $36 billion) and create around four million new jobs by increasing the use of digital financial services alone. Pakistan has made some progress in digitalizing its public services, especially in the online service delivery domain, but it still lags behind many of its peers in the region and globally, noted in a report of the Asian Development Bank (ADB). Copyright Business Recorder, 2025
Sharjah 24
25-06-2025
- Business
- Sharjah 24
Abdullah bin Zayed receives Pakistani Deputy PM and FM
Focus on enhancing bilateral relations During the meeting, Sheikh Abdullah and Ishaq Dar discussed the strong bilateral ties between the UAE and Pakistan and explored ways to further strengthen cooperation in various fields to serve shared interests and promote the prosperity and well-being of both nations. Signing of key agreements Following their discussions, the two ministers signed the official minutes of the 12th session of the Joint Ministerial Commission. They also signed a Memorandum of Understanding (MoU) regarding the mutual exemption of entry visa requirements for citizens of both countries. Additionally, they witnessed the signing of a MoU to establish a joint task force aimed at boosting UAE investments in strategic sectors within Pakistan. This MoU was signed by Mohamed Hassan Al Suwaidi, Minister of Investment, and Tariq Bajwa, Special Assistant to the Prime Minister of Pakistan. Another significant agreement was signed concerning cooperation in artificial intelligence and the digital economy. This agreement was signed by Mohamed Hassan Al Suwaidi and Zarar Hashim Khan, Federal Secretary at Pakistan's Ministry of Information Technology and Telecommunications. Senior officials in attendance The joint commission meeting saw the presence of several high-ranking officials, including Mohamed Hassan Al Suwaidi, Minister of Investment; Ahmed Ali Al Sayegh, Minister of State; Saeed Mubarak Al Hajeri, Assistant Foreign Minister for Economic and Trade Affairs; Omran Sharaf, Assistant Foreign Minister for Advanced Science and Technology; and Hamad Obaid Al Zaabi, UAE Ambassador to Pakistan. Ahmed Ali Al Sayegh led the UAE delegation, while Tariq Bajwa chaired the Pakistani side. Deepening strategic partnership In his remarks during the meeting, Ahmed Ali Al Sayegh stated that the Joint Ministerial Commission reflects the deeply rooted strategic partnership between the UAE and Pakistan, a relationship based on decades of cooperation and a shared vision. He expressed appreciation to Mohammad Ishaq Dar for his efforts to enhance bilateral relations and reiterated the UAE's commitment to strengthening collaboration across various sectors of mutual interest. A longstanding and evolving relationship Al Sayegh emphasised that Pakistan is a key partner for the UAE, with a distinguished relationship that dates back to the establishment of diplomatic ties in 1971. He noted that the two countries continue to foster strong ties, with non-oil trade reaching over US$8.6 billion in 2024. He concluded by highlighting the enduring partnership between the UAE and Pakistan, grounded in mutual trust and respect, and focused on building a prosperous, forward-looking future for both peoples.
Business Recorder
10-06-2025
- Business
- Business Recorder
IT, ITeS export remittances surge by 23.7pc
ISLAMABAD: Pakistan's information technology and IT-enabled services (ITeS) export remittances including computer services and call centre services, increased by 23.7 percent to US 3.825 billion dollars during July to March of the fiscal year 2025, marking the highest trade surplus among all service sectors at US 2.4 billion dollars, the Economic Survey 2023-24 noted. The sector reached a total of $2.825 billion in export remittances from July to March FY 2025, reflecting a 23.7 percent increase compared to $2.284 billion during the same period of the previous fiscal year, the survey mentioned. In March 2025 alone, ICT export remittances were recorded at $342 million, marking a 12.1 percent rise from $305 million in February 2025. On a year-on-year basis, this also represents an 11.7 percent increase compared to $306 million recorded in March 2024. The Economic Survey highlighted that IT and ITeS industry achieved a trade surplus of $2.429 billion, the highest among all service sectors, growing by 21.6 percent from the $1.997 billion surplus during the corresponding period last year. In stark contrast, the overall services sector posted a trade deficit of $2.318 billion during the same period, further highlighting the ICT industry's vital role in balancing national service accounts. Freelancers based in Pakistan also made a substantial contribution by earning $400 million in foreign remittances during July–March FY 2025. According to the Ministry of Information Technology and Telecommunications, this impressive performance stems from concerted efforts by the Pakistan Software Export Board (PSEB), in coordination with the Special Investment Facilitation Council (SIFC) and key industry stakeholders. These efforts focused on facilitating international market access, supporting digital infrastructure, and enhancing ease of doing business for IT firms. As of March 2025, more than 30,000 IT and ITeS companies were registered with the Securities and Exchange Commission of Pakistan (SECP), reflecting a steady expansion in the formal IT sector. The survey further attributed that the PSEB is executing an ambitious plan to launch 250 e-Rozgaar centres nationwide by FY 2027 under the PSDP project 'Prime Minister's Initiatives – Support for IT Startups, Specialised IT Training, and Venture Capital.' By the end of FY 2025, 50 of these centers are expected to be operational, with a projected target of creating 20,000 new jobs. Currently, more than 50 Software Technology Parks (STPs) and e-Rozgaar centres are operational across primary and secondary cities including Karachi, Lahore, Islamabad, Faisalabad, Quetta, and Gilgit, hosting over 350 IT companies and 4,600 professionals, of which 21 percent are women. In FY 2025 (July–March), over 6,400 IT professionals were trained in advanced and emerging technologies, while 2,700 interns were placed in IT firms, maintaining a high 70 percent retention rate. Additionally, 15 IT firms received international certifications such as ISO 27001 and ISO 27701, while 20 call centers achieved ISO 18295 certification —enhancing Pakistan's global competitiveness in the outsourcing market. The IGNITE-National Technology Fund continued its mission of fostering innovation and entrepreneurship. The National Incubation Centers (NICs) have now incubated over 1,900 startups, out of which 960 have graduated, collectively generating over 185,000 jobs, attracting investments of Rs 30.8 billion, and reporting revenues exceeding Rs 27.3 billion. More than 12,000 women entrepreneurs have been empowered through these programmes. The 2.0 programme has provided over 4.55 million trainings, including to 50,000 overseas Pakistanis, enabling freelancers in the country to earn a cumulative $1.65 billion by December 2024. PSEB also ramped up global outreach during FY 2025, subsidizing the participation of 256 IT companies in 15 international and 2 local events, yielding over $48 million in business leads. The 'TechdestiNation Pakistan' campaign was actively promoted, including the launch of the TechdestiNation Podcast, highlighting success stories and emerging leaders in the sector. To meet the ambitious target of achieving $15 billion in annual ICT exports in the coming years, the government continues to focus on skills development, ease of business, and international partnerships. Copyright Business Recorder, 2025
