ISLAMABAD: The Telecom Operators’ Association (TOA) has sought active government intervention to expedite the transition towards a cashless economy and match the strides made by neighbours India and China.

The body of telecom companies has said regional nationals have made remarkable strides in digital financial inclusion, and Pakistan has to leverage the power of technology to drive economic growth and development.

Talking to the media on Friday, TOA Chairman Aamir Ibrahim said the government has to take advantage of growing digitisation and the availability of telecom services across the country for financial inclusion and documenting the economy.

The TOA has forwarded a comprehensive strategy to the government to accelerate the shift towards a cashless society.

Mr Ibrahim, who is also the head of Jazz and Mobilink Microfinance Bank, has suggested the integration of smartphones, SIMs, digital wallets, or bank accounts with Nadra’s services to ensure universal access.

A cashless society is a catalyst for unlocking a nation’s full potential by moving towards a digital economy and also improving tax compliance, he added.

The telecom operators’ body has sought cross-industry collaboration by establishing a dedicated forum to monitor cashless economy initiatives, recommend policies, and address challenges.

It has also called for reduced taxes to encourage digital payments, compared to cash transactions. A pilot for this initiative could be launched in Islamabad, TOA added.

The suggestions also called for the roles of the State Bank of Pakistan, the Pakistan Telecommunication Authority, and the Securities and Exchange Commission of Pakistan to drive digital and financial inclusion through more supportive policies.

The TOA has recommended changes in e-commerce policy to discourage cash-on-delivery transactions by imposing a cap of Rs 3,000 on cash payments for basic commodities.

According to Mr Ibrahim, government institutions should lead the transition towards a cashless economy.

Utility Stores Corporation, Central Directorate of National Savings and Pakistan Post should “prioritise digital payments and phase out cash transactions,” the TOA chairman added. He added that another suggestion was to expand the number of retail stores accepting digital payments to three million by 2030.

Published in Dawn, July 28th, 2024