Pakistan unveils payment systems strategy to shift to cashless economy
KARACHI: In collaboration with the World Bank, the State Bank of Pakistan has introduced a strategy for turning the payment method from cash to an almost cashless system.
For this purpose, the central bank will launch a new mobile application for the National Payment Systems Strategy (NPSS) and install one million digital access points across the country in next three years.
“Migration to efficient electronic payments stimulates consumption and trade, bringing benefits to the whole economy. By migrating to electronic means, the strategy intends to boost Pakistan’s GDP by 7%, creating four million jobs, resulting in $263 billion in new deposits, representing a potential market of $36 billion, all by 2025,” the SBP’s The National Payment Systems Strategy (NPSS) report said.
Announcing the NPSS, SBP Governor Reza Baqir said Pakistan was one of those countries which had excessive ratio of cash. “The cost of cash right now is huge in Pakistan,” he added.
The objectives of this NPSS are to make recommendations to design a national payments system complying with international standards and best practices, and tailored for the specific circumstances and needs for a safe, efficient and inclusive National Payment Systems in Pakistan.
Baqir said the digital payment network would make it easier for international corporations, banks and finteches to work locally and help people in accessing the financial system.
“It will be easier for the people to make payments and receive them. It will also be easier for them to save or plan for your financial future,” he said adding that the central bank was developing a faster payment system that would simplify the requesting, receiving and sending of payments in the country.
President World Bank David Malpass has congratulated the SBP for launching the NPSS.
National Payment Systems Strategy may be accessed at SBP’s Website: http://www.sbp.org.pk/PS/PDF/NPSS.pdf