Islamabad: Dr. Usman Jahan, an economist, has praised the government’s effective measures and the substantial progress made in transitioning to a cashless economy. This progress is expected to play a key role in the sustainable development of the national economy. The transition is deemed crucial for economic uplift as the country currently operates with both formal and informal economic sectors.

According to Radio Pakistan, the formal sector is well-regulated by the State Bank of Pakistan, while the informal economy, which accounts for at least 30 percent of the national economy, remains unregulated. The challenge lies in integrating this informal economy into the mainstream to ensure the inclusion of social sectors. Currently, 17 percent of economic transactions are cashless, a significant increase from 8 percent in 2005. The populace has become more accustomed to virtual or online payments, using mobile payment apps like Jazcash and Easypaisa extensively.

Dr. Jahan emphasized that there is still much wor
k to be done to achieve a fully cashless economy. He highlighted the necessity of this transition as it ensures tax revenue from monetary transactions. Additionally, he pointed out the need to lower the high tax rates on the salaried class, as no other country imposes such rates on a class that is not considered very wealthy.