Qudsia Bano

In a significant push towards modernizing its economy, Pakistan's government has emphasized the necessity of end-to-end digitization of financial institutions. This move is seen as a cornerstone for fostering economic development and enhancing the efficiency and transparency of financial operations within the country. Speaking at a recent economic forum, Finance Minister Senator Muhammad Aurangzeb underscored the critical role that digitization plays in the broader economic strategy of Pakistan. He highlighted that the complete digitization of financial institutions is not merely a technological upgrade but a fundamental transformation that can lead to substantial economic benefits. "End-to-end digitization is essential for creating a more inclusive and efficient financial system. It will reduce transaction costs, improve financial inclusion, and provide a solid foundation for sustained economic growth," Aurangzeb stated. He pointed out that digital financial services can reach underserved populations, thereby promoting greater economic participation across various sectors of society.

"""The push for digitization comes at a time when Pakistan is actively seeking to stabilize its economy and attract foreign investment. The government's agenda includes several key reforms, such as the modernization of State-Owned Enterprises (SOEs), privatization initiatives, and the implementation of a comprehensive digital framework for the Federal Board of Revenue (FBR). These measures are aimed at enhancing operational efficiency and ensuring greater accountability,""" said Shahid Javed, a senior economist at the State Bank of Pakistan. He also noted the positive impact of digital transformation on the ease of doing business in Pakistan. """Digitally simplified financial procedures will increase Pakistan's appeal to investors. It guarantees that companies can function in a more stable and safer financial environment and makes regulatory compliance easier,""" he explained.

"""The call for digitization aligns with global trends where countries are increasingly leveraging technology to enhance their financial sectors. In Pakistan, the State Bank has been proactive in promoting digital banking and fintech solutions, recognizing their potential to revolutionize the financial landscape,""" Shahid continued. """The push for end-to-end digitization in Pakistan's financial institutions is critical for driving sustainable economic development. By embracing digital transformation, Pakistan can unlock a myriad of opportunities, including enhanced efficiency, improved financial inclusion and a more attractive investment landscape,""" underscored an official of the Securities and Exchange Commission of Pakistan. He said as global trends increasingly favor digital innovation in finance, Pakistan's proactive stance signals its readiness to adapt and thrive in the digital age. """With concerted efforts from both public and private sectors, bolstered by international cooperation, Pakistan is poised to reap the dividends of a modernized financial ecosystem, paving the way for a more prosperous and resilient economy.""

Credit: INP-WealthPk