Pakistan’s Government, the State Bank, has greenlit five digital retail banks (DRBs) to enhance financial inclusion through digital channels. Despite rising internet and mobile banking usage, Pakistan grapples with low digital literacy. Government oversight is crucial for building trust, safeguarding consumers, and transitioning from cash to digital transactions.
However, sporadic policies such as SIM blocking for non-taxpayers erode trust and impede digital uptake. Regulatory loopholes allow unlicensed digital lenders to exploit borrowers, resulting in instances of harassment. To promote digital literacy and financial inclusion effectively, Pakistan’s Government must implement robust frameworks that encourage FinTech adoption, ensure consumer protection, and foster a resilient digital economy.
