Lahore [Pakistan], October 29 Despite government promises to turn Pakistan into a modern digital economy, cash continues to dominate financial transactions, highlighting the gap between vision and reality. Over Rs 9.5 trillion remains in circulation, reflecting Pakistan's slow transition toward a cashless system, as reported by The Express Tribune.
According to The Express Tribune, Pakistan Industrial and Traders Association Front (PIAF) Senior Vice Chairman Muddasir Masood Chaudhry said that the authorities have failed to resolve the practical challenges faced by traders and consumers.
He pointed out that weak internet access, limited financial literacy, and poor awareness in both cities and villages continue to block the country's digital growth.
"The government may be promoting digital payments, but at the ground level, people are struggling with unreliable connectivity and frequent system crashes," he explained.
Under the Prime Minister's Cashless Economy Plan, the government seeks to boost the number of active digital merchants to 2 million by FY2025-26 and raise the total number of internet and mobile banking users from 95 million to 120 million. The goal is to double annual digital payment transactions to 15 billion, but experts see these targets as overly ambitious given Pakistan's weak infrastructure and economic instability.
Tax consultant Arsalan Qureshi stated that a lack of incentives is discouraging small traders from using digital platforms. "Without rewards like tax rebates or reduced transaction fees, most businesses fear more taxation instead of benefits," he remarked.
Similarly, Rizwan Sheikh, a trader from Lahore's Shah Alam Market, said customers from smaller towns still prefer cash due to poor internet and technical glitches in payment apps, as cited by The Express Tribune.
Only 61 per cent of the population has access to mobile broadband, leaving rural areas disconnected from digital systems. Experts warn that unless Pakistan addresses poor digital infrastructure, awareness gaps, and trust deficits, its dream of a cashless economy will remain distant and largely symbolic, as reported by The Express Tribune.