Advancing towards a cashless society

Pakistan’s economy is beginning to show signs of stabilisation, as recent data on inflation and forex inflows suggest. While this is indeed a positive development and brings some much-needed optimism, steering the country towards sustainable high growth will require significant structural changes. In FY25, the federal government anticipates collecting nearly Rs13 trillion in taxes, with three-fourths of this amount being used solely for interest payments, leaving minimal fiscal space for other initiatives. To alter this trajectory, we must broaden, not just deepen, our tax base. However, Pakistan’s informal economy is almost as large as its documented sector, with currency in circulation close to Rs9.2tr.