Policy-makers need data to formulate good policies. Good data produced by government agencies can be expected to lead to good policies and desirable outcomes. But data collection and statistical analyses require adequate methodologies and resources. Unfortunately, Pakistan's data quality gets a "C" grade by international agencies like the International Monetary Fund (IMF). Clearly the country faces significant data quality challenges. These challenges range from estimation of the size and scope of the informal economy and electricity demand/consumption to education and nutrition. Here are some examples of where the Pakistan Bureau of Statistics (PBS) data differs sharply from what is being reported by non-government groups:
1. Gross Domestic Product:
A large chunk of Pakistan's economy is not documented. The PBS seems to be failing in making even the most rudimentary estimates of it. A 2024 joint study of the International Labor Organization and the Small and Medium Enterprise Development Authority (SMEDA) estimated Pakistan's undocumented economy at $457 billion. While other South Asian nations, particularly Bangladesh and India, do include estimated undocumented GDP figures in their official GDP, Pakistan's official GDP figures do not include such estimates. If the Pakistani government decides to include estimates of the informal economy in its official figures, the country's GDP would jump to $1,059 billion in market exchange terms and over $4,000 billion in PPP terms.
 |
| Pakistan's Total GDP, including Undocumented, Estimated at over $1 Trillion |
2. Electricity Consumption:
Electricity demand and consumption are very important indicators of socioeconomic development in any country. Unfortunately, the PBS is failing to comprehend the scale of solarization and energy consumption in Pakistan. The country is experiencing soaring demand for electricity across all of the sectors of its economy. The new demand is being met by rapidly growing deployment of distributed solar, estimated at 38 GW as of June, 2025. In 2025, 44% of solar deployment was residential, followed by industry (26%), agriculture (21%) and commercial users (9%). The expansion of distributed solar has enhanced electrification across the economy, lifting Pakistan's electrification rate to 21.7% in FY2025 from 17% in FY2023, close to the global average of 22%. This surge to over 200 terawatt-hours of electricity is not reflected in official data, according to a report by Ember Energy titled "The solarization of Pakistan's energy economy".
3. Out of School Children:
The Annual Status of Education Report (ASER) Pakistan 2025 national report, officially released on March 26, 2026, shows that the number of "Out of School Children" (OOSC) aged 6-16 years in Pakistan is now 5 million, not 25 million generally reported. "The findings on access are encouraging. Enrollment levels are high, with 92.2 percent of children aged 6–16 in school and only 7.7 percent out of school", says the ASER Pakistan 2025 report. ASER Pakistan is a citizen-led initiative, primarily led by Idara-e-Taleem-o-Aagahi (ITA) in collaboration with various national and international partners to promote foundational learning. It also works closely with over 10,000 volunteers and numerous local civil society organizations such as the Aga Khan Foundation (AKF), PAL Network (People's Action for Learning), UNESCO and federal and provincial government departments in Pakistan.
4. Pakistan Household Survey:
The HIES 2024-25 household integrated economic survey by Pakistan Bureau of Statistics (PBS) raises more questions than it answers. For example, it shows that Pakistani households are buying lower amounts of basic food ingredients like wheat, meat and eggs in the last four years, implying that people are eating less to cover other expenses, like electricity and gas. But it doesn't explain why the households have reported significantly lower purchases of these items than production reported recently by the PBS. What is the source of this discrepancy? Is the data flawed? Or, is it missing a new trend toward less home cooking? Is the young urbanized population buying more prepared foods? Are they ordering out more often using ubiquitous food delivery services?
Summary:
Clearly, the Pakistan Bureau of Statistics (PBS) faces significant data quality challenges in areas such as the size of the informal economy to electricity consumption, education and nutrition.
To keep up with the demands of modern governance, the PBS needs to carry out substantial reforms aimed at improving transparency, quality, and data credibility. The reliability of national indicators such as GDP, electricity consumption, education and nutrition is critical not only for local policy but also for global perception and investor confidence. It also requires additional funding for new technology, increased expertise in field offices and more enumerators in the field to collect data. The PBS's current annual budget of Rs. 5.1 billion (US$18 million) for a population of over 250 million people is not enough to do justice.
Related Links:
Pakistan's Real Total GDP Exceeds $1 Trillion
Pakistan's Digital Public Infrastructure
Pakistan Projected to Be World's 6th Largest Economy By 2075
Pakistan's Electricity Consumption Up 21% in Just Two Years
Pakistan's New Infrastructure Investments and Trade Routes
ASER Pakistan Reports Substantial Progress in Enrolling Out-of-School Children
Pakistan Household Survey Raises More Questions Than It Answers
Pakistan at 75
Growing Presence of Pakistani Women in Science and Technology
Riaz Haq's Youtube Channel
Pakistan's Digital Public Infrastructure
Pakistan Projected to Be World's 6th Largest Economy By 2075
Pakistan's Electricity Consumption Up 21% in Just Two Years
Pakistan's New Infrastructure Investments and Trade Routes
ASER Pakistan Reports Substantial Progress in Enrolling Out-of-School Children
Pakistan Household Survey Raises More Questions Than It Answers
Pakistan at 75
Growing Presence of Pakistani Women in Science and Technology
Riaz Haq's Youtube Channel
27 comments:
Pakistan is not “secretly” a rich, trillion‑dollar economy; the blog you cited relies on optimistic, selective assumptions and ignores hard macro indicators like exports, tax capacity, poverty, and repeated IMF dependence, all of which point to a fragile, lower‑middle‑income economy rather than hidden prosperity.
Below is a structured critique of the blog’s argument.
## What the blog actually claims
The blog starts from a joint ILO–SMEDA estimate that Pakistan’s undocumented (“informal”) economy was about 457 billion US dollars in 2023, and asserts this was larger than Pakistan’s official GDP of roughly 340 billion dollars that year.[5][6][7]
It then simply adds the two numbers to get a “real GDP” of 797 billion dollars for 2023, and extrapolates forward: with official GDP projected at 452 billion dollars in 2025–26, it assumes the informal sector grew at the same rate and reaches an informal GDP of 607 billion dollars, giving a headline “over one trillion dollars” nominal GDP.[5]
The article further claims that, in purchasing‑power‑parity (PPP) terms, Pakistan’s total economy (formal + informal) is “over 4 trillion” dollars and implies a PPP GDP per capita above 16,000 dollars—roughly triple mainstream estimates.[8][5]
## Official GDP and PPP reality
By contrast, standard sources using official national accounts show Pakistan’s nominal GDP in 2024 at about 373 billion US dollars, and roughly 407 billion in 2025—an order of magnitude below one trillion.[9][10][1]
On a PPP basis, Pakistan’s total GDP in 2024 is around 1.57 trillion international dollars, with PPP GDP per capita about 5,500–5,600 dollars, not 16,000.[11][12][8]
That PPP per‑capita figure places Pakistan clearly in the lower‑middle‑income bracket globally and well below both the world average PPP per‑capita (~27,000 dollars) and the levels seen in genuinely “wealthy” economies.[8]
## Informal economy: large, but not hidden riches
There is broad agreement that Pakistan has a large informal economy, but estimates vary widely—from roughly 30–40% of total GDP in some ILO/SMEDA and World Bank–linked studies, up to ~59% in certain think‑tank papers using more aggressive methodologies.[6][7][13][14][15]
Crucially, these studies are themselves approximations; they do not convert directly into an official, spendable “hidden” GDP figure, and using the highest‑end estimate and then assuming it grows identically to the formal sector, as the blog does, is methodologically weak.[14][5]
Even if one took a high estimate—say informal activity at 40–50% of total—combining that with Pakistan’s observed official GDP still yields a total economy in the 550–700 billion‑dollar range, not a clean, well‑documented trillion‑dollar economy with state capacity and tax coverage to match.[15][1]
## Structural weakness contradicts “secretly wealthy”
If Pakistan were truly a one‑trillion‑dollar economy in market‑exchange terms with something like 16,000 dollars PPP per‑capita, you would expect to see strong export performance, robust fiscal capacity, healthy reserves, and low poverty—not chronic balance‑of‑payments crises and serial rescues.
Anon: “Pakistan is not “secretly” a rich, trillion‑dollar economy; the blog you cited relies on optimistic, selective assumptions and ignores hard macro indicators like exports, tax capacity, poverty, and repeated IMF dependence, all of which point to a fragile, lower‑middle‑income economy rather than hidden prosperity”
Pakistan economy is largely a domestic service-based local currency economy in which most transactions occur in cash. It does not depend on US$. It does not depend on exports but it does need US$ mainly for energy imports. The country is working on reducing its imported energy needs as seen in its massive deployment of hydro, solar, nuclear and domestic coal. The unfortunate part is that the PBS stats do not reflect these realities. Therefore the policymakers do not get an accurate picture to formulate good policies.
Pakistan's Solar Boom Is Rewriting the Global South's Economic Development
https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0
In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.
Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.
If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.
I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.
Saudi Arabia, UAE drive Pakistan remittances to record $41.6bn
Overseas Pakistanis send 8.6% more in FY26 as Gulf nations retain top spot
https://gulfnews.com/world/asia/pakistan/saudi-arabia-uae-drive-pakistan-remittances-to-record-416bn-1.500602356
Dubai: Pakistan received a record $41.6 billion in workers’ remittances during fiscal year 2025-26, with Saudi Arabia and the United Arab Emirates accounting for nearly half of the total inflows, underscoring the Gulf’s continued importance to the country’s economy and external finances.
Data released by the State Bank of Pakistan (SBP) on Thursday showed remittances rose 8.6% year-on-year from $38.3 billion in FY25. Saudi Arabia remained the largest source of inflows, contributing $9.78 billion, followed by the UAE at $8.81 billion, the United Kingdom at $6.33 billion and European Union countries at $5.23 billion.
Monthly remittances stood at $3.5 billion in June, up 2% from the same month last year but 18.3% lower than May’s record $4.25 billion, which analysts attributed to a high base following Eid-related transfers.
Biggest source
In June alone, Saudi Arabia remained the biggest source of remittances, with overseas Pakistanis sending $829.6 million, followed closely by the UAE at $792.2 million. The UK contributed $514.9 million, while remittances from the United States totalled $296.8 million.
Khurram Shehzad, adviser to Pakistan’s prime minister, described the annual inflow as a historic milestone.
“This historic milestone reflects the unwavering confidence of overseas Pakistanis and reinforces Pakistan’s external sector resilience, stronger foreign exchange buffers and improving macroeconomic fundamentals,” he tweeted.
Dr Khaqan Najeeb, former adviser to Pakistan’s Ministry of Finance, said the record remittance inflows continued to provide a crucial cushion for the country’s external sector. “Workers’ remittances remained a key source of external sector resilience in FY2025-26, reaching a record $41.6 billion, up 8.6% over the previous year,” he said.
Strong performace
“While inflows eased to $3.5 billion in June due to seasonal factors, they still grew 2% year-on-year, reflecting the continued support of overseas Pakistanis.” He added that Pakistan must boost exports, productivity and investment to ensure remittances complement a more competitive, investment-led economy.
The strong remittance performance comes as Pakistan’s external sector continues to improve. SBP Governor Jameel Ahmad said the country’s current account was expected to post a slight surplus for FY26, supported by robust remittances and services exports despite higher imports.
For the first 11 months of FY26, Pakistan recorded a current account surplus of $255 million, with final figures for the fiscal year expected to remain in positive territory.
World Bank Boosts Pakistan's Grid for Reliable Clean Energy
https://www.miragenews.com/world-bank-boosts-pakistans-grid-for-reliable-1707915/#google_vignette
WASHINGTON, July 09, 2026 - The World Bank's Board of Executive Directors today approved US$375.9 million in financing for Pakistan's Grid Stability Enhancement Project, to strengthen its national power transmission network under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA). The Project is the first phase of a 10-year program to help Pakistan modernize its electricity transmission network, reduce power outages, and bring more clean energy to homes, businesses, and industries.
"Pakistan's energy challenges are deeply interconnected with its broader economic stability," said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. "By investing in advanced technologies for more resilient transmission infrastructure, this project will contribute to reducing electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan's economy."
Pakistan's electricity network has long struggled with grid instability and transmission bottlenecks that limit the delivery of reliable power and leave clean energy generation underutilized. These constraints affect millions of Pakistanis every day through frequent outages, higher electricity costs, and lost economic opportunities.
The project will install advanced equipment to stabilize the transmission grid and improve the flow of electricity at key substations. This includes Static Synchronous Compensators, or STATCOMs, - at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations. These upgrades will help bring 640 MW of currently curtailed wind energy onto the grid, enabling the full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers. They will also support the integration of approximately 491 MW of planned private sector-led renewable energy projects. Together, these improvements will help Pakistan move toward its national commitment of achieving 60 percent renewable energy in its electricity mix by 2030, in line with the country's Nationally Determined Contribution under the Paris Agreement. Over its lifetime, the project is expected to avoid approximately 832,500 tons of CO₂ emissions each year, or more than 20.8 million tons cumulatively over 25 years.
"A reliable and modern transmission grid is essential for Pakistan's energy future," said Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank's BEST‑PAK program in Pakistan. "As the first phase of the BEST-PAK program, it unlocks a pathway to large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector through targeted infrastructure investments and institutional reforms, creating the conditions for future private capital participation."
The project also advances the Government's ongoing transmission-sector reform agenda, centered on the restructuring of National Transmission & Dispatch Company (NTDC) into specialized successor entities. Drawing on relevant international experience adapted to Pakistan's needs, it supports faster implementation of reforms designed to strengthen governance, accountability, operational performance, and the long-term sustainability of the power sector.
Pakistan is among the countries most exposed to climate-related risks, including river and urban flooding and extreme heat events. The project's design accounts for these realities, by requiring all new installations to meet climate-resilient specifications, including elevated platforms above ground to mitigate flood exposure and equipment designed to operate in temperatures of up to 55°C. These measures will help ensure reliable performance during monsoon seasons and heatwaves.
Pakistan's Solar Boom Is Rewriting the Global South's Economic Development
https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0
Pakistan has quietly become one of the world's most important energy stories.
In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.
Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.
If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.
I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.
------------
Refrigerator Sales Surge in Pakistan
Pakistan's refrigerator market accounts for ~56% of the country's major household appliances sector. Market penetration sits around 51-56%, with unit sales expected to surge 20% to 339,000 units in CY26. Industry leaders include Haier, Dawlance, Pak Elektron Limited (PAEL), and Waves.
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EV Sales Surge in Pakistan
Electric vehicle adoption in Pakistan is exploding in the two-wheeler sector due to soaring fuel costs and the new Pakistan Accelerated Vehicle Electrification (PAVE) program. Electric-bike registrations surged by 322% year-on-year with cumulative sales reaching 125,511 units by May, capturing over 10% of the monthly two-wheeler market.
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Air conditioner (AC) Sales Surge in Pakistan
Pakistan's air conditioning sector represents a massive market estimated at Rs 190 billion annually. However, in June 2026, the industry experienced a supply glut as delayed summer rains and later heatwaves caused consumer demand to lag behind aggressive manufacturer production targets.
The manufacturing sector performed strongly, posting an expansion of 6.6 per cent in 2025-26 compared with 2pc in the preceding year.
https://www.dawn.com/news/2007197
This improvement was primarily driven by a 6.5pc rebound in Large-Scale Manufacturing (LSM), 8.5pc surge in Small-Scale Manufacturing (SSM), and 6.2pc growth in slaughtering.
The manufacturing and mining sectors are critical to Pakistan’s industrial base and jointly contribute 13.5pc to GDP. Within manufacturing, LSM plays a dominant role, accounting for 67.4pc of the sector and 8.2pc of GDP, followed by SSM and slaughtering, which contribute 2.5pc and 1.4pc to GDP, respectively.
However, the mining and quarrying sector posted a modest growth of 0.4pc in FY26, indicating a gradual recovery in extraction activities.
The survey has highlighted that LSM grew by 6.5pc during July-March 2025-26, indicating a broad-based revival in industrial activity, compared to a 1.9pc contraction in the same period last year, which was primarily a continuation of the contraction that began in FY23 due to import restrictions.
In March alone, LSM expanded by 11.1pc, compared with a contraction of 2.4pc a year ago.
Automobile sector
The survey said that the auto industry showed growth across all sectors during July-March FY26, except for farm tractor sector, where production and sales were down by 8pc and 13pc, respectively. Additionally, wartime conditions have significantly increased costs for local tractor OEMs.
The survey highlighted that the auto sector had seen rising investment and was adopting new technologies, and that the industry was well-positioned to maintain its growth trajectory.
The following is a fintech and wider digital economic development view of the South Asian nation of Pakistan in 2026.
By Richie Santosdiaz
https://thefintechtimes.com/fintech-landscape-of-pakistan-in-2026/
Pakistan’s fintech story cannot be separated from the country’s wider economic challenges. For years, Pakistan has faced recurring balance-of-payments pressures, high inflation, currency volatility, fiscal constraints and the difficult task of expanding formal economic participation across a population of more than 240 million people. These structural pressures have shaped almost every part of the economy, including financial services.
That is why fintech in Pakistan matters. It is not simply about digital wallets, payment apps or startup valuations. It is about whether technology can help make one of South Asia’s largest economies more efficient, more inclusive and more formalised.
“Is Fintech the Key to Economic Revival in Pakistan?”was written by me and it highlighted how fintech could support financial inclusion, digital payments, small and medium enterprise (SME) finance, remittances and broader economic recovery. That argument remains highly relevant today, particularly as Pakistan continues trying to move more economic activity into formal and digital channels.
Pakistan’s economic scale is significant. Pakistan’s gross domestic product (GDP) stood at around $371.6billion in 2024, while GDP per capita was approximately shy of $1,500. The economy is supported by agriculture, textiles, manufacturing, services, remittances, construction, telecommunications and a large informal sector, all according to the World Bank. Karachi remains the country’s financial centre, Lahore is a major commercial and technology hub, and Islamabad serves as the political and regulatory capital.
Yet Pakistan’s biggest fintech opportunity may lie outside its formal banking system. Millions of people remain underbanked or financially excluded. The World Bank’s Global Findex Database continues to highlight the importance of account ownership, digital payments and mobile-enabled finance in expanding financial inclusion globally. In Pakistan, the gap between population size and formal financial usage remains one of the most important development challenges facing the sector.
This is where digital finance can have an outsized impact. A bank branch-based model alone cannot serve Pakistan’s entire population efficiently. Geography, income levels, informality and documentation barriers all limit traditional banking reach. Digital wallets, agent networks, mobile accounts and instant payments therefore offer a more scalable path to inclusion.
Payments are the clearest example. Pakistan has spent the past several years building the foundations for a more digital payments economy. The State Bank of Pakistan’s Raast Instant Payment System has become one of the country’s flagship financial infrastructure initiatives, designed to enable low-cost, real-time digital payments between individuals, businesses and government entities. The creation of Raast Payments Pakistan Pvt. Ltd. further signals the central bank’s ambition to institutionalise and expand the country’s digital payments infrastructure.
This infrastructure matters because payments sit at the heart of formalisation.
When salaries, merchant transactions, remittances, utility bills and government payments move digitally, they create records. Those records can support credit scoring, taxation, consumer protection and better financial planning. In a country where cash and informality remain deeply embedded, digital payments can gradually change the structure of economic participation.
Pakistan’s Rs 328 billion major appliance market is recovering rapidly, led by Air Conditioners (23% share, ~190B) and Refrigerators (56%). Driven by rising temperatures, expanding solar power, and economic stability, PAEL projects 20% growth in CY2026, with sales expected to exceed 105,000 ACs and 339,000 refrigerators.The market is fiercely competitive, dominated by local and international manufacturing giants. Key dynamics and brands include:Market Leaders: Top players like Haier, Dawlance, and Pak Elektron (PAEL) command the majority of the market.Air Conditioners: This is the fastest-growing major appliance segment. Waves Corporation is aggressively expanding back into this category using Completely Knocked Down (CKD) strategies to avoid import bottlenecks.Deep Freezers: Waves retains a ~40% market share, with PAEL holding another 15%.Refrigerator Penetration: Household penetration remains at 51%, leaving substantial long-term growth potential for manufacturers.Solar Integration: The rise in distributed solar generation is driving notable shifts in appliance demand, allowing consumers to efficiently run cooling appliances (fans, ACs) during daylight hours.
India’s electrification rate is nearly 20%, comparable to China’s level in 2012, and is growing relentlessly by around five percentage points per decade.
https://ember-energy.org/latest-insights/indias-electrotech-fast-track-where-china-built-on-coal-india-is-building-on-sun/
India’s electrification rate is nearly 20%, comparable to China’s level in 2012, and is growing relentlessly by around five percentage points per decade.
https://ember-energy.org/latest-insights/indias-electrotech-fast-track-where-china-built-on-coal-india-is-building-on-sun/
A less covered aspect of India's transport electrification story is its railway electrification. With well over 90% of its rail routes currently electrified (99% by official figures), India's railway electrification is currently at par or exceeds China's.
Some caveats here though. Much of the electricity currently being utilized to run trains in India likely comes from coal power plants (though the proportion of renewable energy powering Indian Railways would likely rise in the future), and most of the legacy Indian trains still use diesel generator carriages for powering hotel loads (lights, fans, air conditioning etc in the coaches) even if they are pulled by electric locomotives - though newer electric locomotives and coaches are being made incorporating head-on-generation (HOG) i.e powering hotel loads in trains via electricity drawn from overhead lines by locomotives.
But overall, this electrification push is meant to free India's railways from oil import dependency.
India as a developing country has many, many problems to address. However, railways has offered the mobility to the poor which is remarkable feature that could be emulated by other large developing nations
G Ali,
Oh, I forgot to tell you. Besides two-wheelers and cars, I am obsessed about railways and rockets too! :-)
Regards.
Vineeth, whether you accept it or not, like every Indian, your actual obsession is with Pakistan and proving "mera bharat mahan" crap.
G. Ali
bne IntelliNews - Pakistan targets fully digital remittances to accelerate cashless economy
https://www.intellinews.com/pakistan-targets-fully-digital-remittances-to-accelerate-cashless-economy-454983/
Pakistan plans to make all remittances sent by overseas workers fully digital as part of a broader strategy to accelerate the country's transition to a cashless economy, Gulf News reported.
Prime Minister Shehbaz Sharif has directed officials to ensure that all remittance inflows are processed through digital channels, saying the move would improve transparency, efficiency and economic activity.
The directive was issued during a high-level meeting on digital payments, where officials reported that 92% of remittances received over the past fiscal year had already been transferred digitally.
The initiative follows a record year for overseas inflows, with workers' remittances reaching $41.6bn in FY2025-26, making them Pakistan's largest source of external financing and a key contributor to the country's foreign exchange earnings.
The government is now seeking to increase the share of digital remittances to 100%, while encouraging wider adoption of electronic payments across the economy. Sharif also instructed authorities to step up awareness campaigns promoting QR code-based payments and urged banks and financial institutions to accelerate the rollout of digital payment infrastructure.
Pakistan has recorded rapid growth in digital financial services over the past year. The number of merchants accepting QR code payments has risen 300% to around 2mn, while mobile banking users have increased from 95mn to 137mn.
Officials said the country processed 11.9bn digital transactions during FY2025-26, reflecting growing adoption of digital payment platforms by businesses and consumers.
The government has also expanded the use of digital payments in public services. Nearly all payments to the National Database and Registration Authority (NADRA) are now made electronically, while all disbursements under the Benazir Income Support Programme (BISP), covering around 10mn beneficiaries, are being transferred through digital wallets.
The latest measures build on Pakistan's wider digital finance strategy. Last month, the government expanded its Roshan Digital Account programme, originally introduced for overseas Pakistanis, to allow foreign nationals and international investors to open accounts.
Authorities have increasingly promoted digital financial systems to improve transparency, reduce reliance on cash and expand financial inclusion. A high-level committee established last year continues to oversee the country's transition to a cashless economy, with an independent review of progress expected later this year.
G Ali,
You mean just like how some Pakistanis are obsessed about India (whether they accept it or not)? Must be the sibling rivalry thing. :)
Regards.
Vineeth, there is a difference with "some" and "most".... and it is not sibling rivalry but that one side becomes a nation when there is a stupid cricket match against the other.
G. Ali
G Ali,
"most" - I ask again. Did you do some survey among 1.4 billion people? "Most" Indians I know of are too busy with their daily lives to care (much less "obsess") about Pakistan.
- "and it is not sibling rivalry but that one side becomes a nation when there is a stupid cricket match against the other."
I have no idea what you were trying to say here. Modern India and Pakistan (and Bangladesh) are of course "sibling nations" born from the same womb. I don't watch cricket. Its just another game. And its common to have national rivalries in sports.
In any case, I think we have travelled down this road several times before and we know where it leads. I have zero interest in doing it all over again. :)
Regards.
Vineeth,
"I have no idea what you were trying to say here", there is a Kerala writer Paul Zakaria who said "India becomes a nation when there is a stupid cricket match against Pakistan".
"...born from the same womb", you should have been more specific, they were born of colonial womb, never before them it was a united country. I have more in common with an average Moroccan than with South Indian.
"I have zero interest" in hearing truth again?
G. Ali
G Ali,
As I have repeatedly said, I do not watch cricket (or any other sports for that matter) and I have no idea what that writer whom you mentioned (I've never heard of him despite being a Keralite) hinted at. Did he mean that India isn't acting like a "nation" at other times, or that it is acting too nationalistic in what is - at end of the day - only a game?
If it is nationalism getting mixed with sports that he was speaking of, that isn't really a unique cricket or Indo-Pak phenomenon. The Falkland slogans raised during the Argentina-England WC match is another recent example. (Before you ask - I did not watch the match. I happened to read the news in BBC.)
And as for "India" not being a "united country" prior to 1947, I think I have answered this at length before. At risk of testing your patience and attention span, I'll repeat it again.
Nation-states and nationality are relatively modern Western political concepts. Before that what existed across the world were empires and kingdoms headed by dynasties that often ruled over areas spanning multiple ethnic and linguistic groups with boundaries changing over time and with every war. But if you were to take any Western text on ancient history and bother to read them, chances are that you would see the mention of an "India" among the civilizations - because "India" existed as a distinct civilization, and that civilization historically stretched from the Indus basin in the west to the Brahmaputra in the east. This vast region was politically divided by multiple kingdoms or united by empires (eg: Mauryas, Guptas) at different times, but always shared close cultural and linguistic ties. It spoke two language families - Indo-Aryan in the north and Dravidian in the south - that was nevertheless linked by its shared use of (and influence from) Sanskrit. It gave birth to three ancient religious traditions - "Hinduism", Buddhism and Jainism - whose richly carved temples and monasteries built centuries before the arrival of Islam in the subcontinent can still be seen from Kashmir to Tamil Nadu. What is today eastern and northern Pakistan (Punjab, Sindh and parts of KP), Nepal and Bangladesh were part of this civilization that historians call "India".
But mind you, I do not make any claims here equating this ancient "India" with the modern "Republic of India". RoI is one of the modern successors of this ancient civilization just like modern Pakistan, Nepal, Bangladesh and even Sri Lanka. Its just that the latter "nations" would be more hestitant to identify themselves as culturally "Indian" because of the association of the term with modern RoI, just like how many Taiwanese these days do not wish to consider themselves as "Chinese" due to the association of that term with PRC (eventhough ethnically and culturally Taiwanese are Chinese).
- "I have more in common with an average Moroccan than with South Indian."
How? Are you an Arab or North African by ethnicity, language and culture? Or do you just mean a shared religion? If its the latter, Christian Filipinos should be having a lot more in common with Europeans or South Americans than even with neighbouring Muslim Malays or Indonesians (who all are ethnically related and speak an Austronesian language like the Filipinos).
Linguistically and ethnically, most Pakistanis (atleast those residing in Punjab and Sindh) likely has more in common with north Indians and Bangladeshis than Arabs, Turks and even Persians. And north Indians and south Indians happen to have deep cultural ties that developed over two millenium even if they speak distinct language families.
If you could make it till here, I appreciate your patience.
Regards.
G Ali,
Also, if you aren't quite convinced about the idea of "India" as a distinct ancient civilization with cultural influences that extended far beyond the subcontinent, please read this Wiki article (and check its references and sources too).
https://en.wikipedia.org/wiki/Greater_India
Regards.
Vineeth,
Whether you play cricket or not and know about about Paul Zakaria or not is irrelevant. The statement stands for itself.
Everytime I argue with Indians on social media about India being a British creation i get same lectures. It is always ancient civilization, culture being a new concept etc.
Dictionary defines cultural as: "the beliefs, customs, arts, and way of life of a particular group..".
Please tell me what is culturally common between a Tamil and Behari?
Btw, Iif i tell a Persian, Chinese or Egyptian that theirs is an artificial country they will laugh at me and move on. It is only Indians who get offended and start long lectures about civilization, cultural unity etc. Makes one think that not all is well in state of Denmark.
G. Ali
G Ali,
When someone makes nonsensical statements, one can either ignore him, laugh at him or make an attempt to correct him. I did not ignore your statements nor did I laugh at it. I did not act "offended" nor did I respond by any personal attacks. I chose to explain things to you calmly and patiently. If you see that as a "lecture", perhaps that is because you do not have the inclination or patience to listen. If someone is stubborn enough to stick to a belief that earth is flat or that the sun goes around the earth no matter what efforts others make to explain facts to him, I think it would be best to leave him to his fantasies.
I already explained to you in my earlier replies that "nation" and "nationalism" are relatively modern Western political concepts. What has existed earlier were kingdoms and empires ruled by dynasties whose boundaries weren't based on any ethnicity, language or notions of a "nationhood".
I also explained to you that there are two "Indias". One refers to a modern political entity - Republic of India - while another refers to a larger geographical region bounded by Indus basin to the west, Brahmaputra to the east, Himalayas to the north and Indian Ocean to the south that was also home to a "distinct civilization".
Why do I call it "distinct" and a "civilization"? Because over thousands of years it developed a distinct and extensive set of languages, scripts, system of beliefs, mythologies, architectural styles, music and dance forms that was pretty much unique to this region.
I explained to you that this civilization gave birth to three Dharmic traditions (called so because they are based on a shared idea of "Dharma") - "Hinduism", Buddhism and Jainism - whose richly carved temples and monasteries that predate the Muslim invasions can still be seen across this land.
And yet, despite their extensive geographical spread and diverse architectural styles, the sculptures and wall carvings at a centuries-old "Hindu" temple in Tamil Nadu depict the same deities, characters and mythical stories as one finds thousands of kilometers away in Gujarat, Uttarakhand, Nepal or Assam.
Then there are the art forms - chiefly music and dances. The classical dances of India - whether it be Mohiniyattam of Kerala, Bharatanatyam of Tamil Nadu, Kuchipudi of Andhra Pradesh, Odissi of Odisha, Kathak of Uttar Pradesh, Sattriya of Assam, Manipuri of Manipur - are all based on the principles of the ancient "Natya Shastra". The two classical musical traditions of India - Hindustani classical music in the north and Carnatic classical music in the south are likewise based on the same foundational principles of "Raga" and "Tala".
All of these aren't my own notions. Like I said, pick any Western text on ancient history and see for yourself if it covers a civilization named "India" and the influence it had. Or alternately, read the below link from Britannica. The first paragraph itself summarize what I have explained.
https://www.britannica.com/place/India/History
Regards.
G Ali,
In case you still find it hard to understand the concept of an ancient Indian civilization or its "culture", I would recommend visiting Ellora cave complex if you ever get a chance to visit India again. Or you can find plenty of videos and documentaries about it in Youtube.
https://youtu.be/6jgbM6i67dU?si=jveoJ3hZxe0TjdQ7
A UNESCO World Heritage site aptly located near Aurangabad in central India, the Ellora complex houses elaborately carved "Hindu", Buddhist and Jain rock-cut caves and temples constructed (actually carved out of a rocky cliff in situ) by Rashtrakuta and Yadava dynasties from the 6th to early 13th centuries CE that stand right next to one another in perfect harmony. It represents all three ancient Dharmic traditions and the heights of the ancient Indian civilization in one site. Think of it as akin to a synagogue, a church and a mosque co-located at a historical site in Jerusalem and constructed by the same ruler with no history of fights or squabbles over the site.
https://en.wikipedia.org/wiki/Ellora_Caves
It also deserves mention here that the Rashtrakutas were a southern dynasty based in what is today Karnataka, but at its height controlled a vast area stretching from Kannauj in UP to Kanchipuram in the TN - illustrating how Indian kingdoms and empires often transcended any north-south ethnic/linguistic divide.
https://en.wikipedia.org/wiki/Rashtrakuta_Empire
Perhaps conditioned into believing that India did not have a "civilization" or "culture" before the arrival of Islam and that it has no architectural marvels to boast of other than Qutb Minar, Taj Mahal and a bunch of other Mughal-era tombs, the sight of the Ellora complex (and countless other ancient Indian temple complexes across the country) might open your eyes.
The extent of the cultural influence of this ancient "Indian civilization" outside of the subcontinent can be seen in the spread of Buddhism and "Hinduism" in East and South-East Asia, the monumental Hindu and Buddhist temple complexes like Ankor Wat in Cambodia and the Prambanan and Borobudur in Indonesia, Apsara dances of Thailand and Cambodia, Sanskritized names of their kingdoms (Srivijaya, Ayutthaya/Ayodhya, Mataram, Champa), dynasties (Sanjaya, Shailendra), cities (Singapore/Singhapura, Putrajaya, Yogyakarta, Jakarta/Jayakarta, Jayapura), airports (Suvarnabhumi of Bangkok with its sculpture of "Samudra manthan"), emblems (eg: Garuda of Indonesia and Thailand), usage of Brahmic scripts (Burmese, Thai, Cambodian, Lao, Javanese), Ramayana performances ("Yama Zatdaw" of Myanmar, "Ramakien" of Thailand, "Reamker" of Cambodia, "Phra Lak Phra Ram" of Laos, "Kakawin Ramayana" of Java) etc.
- "Please tell me what is culturally common between a Tamil and Behari?"
There are many cultural aspects that are similar. For example, Tamil and Bihari Hindus mostly worship the same deities, and have similar marriage rituals (flower garlands, mangalsutra/thaali, circumambulation etc). Both Tamils and Biharis would often use similar Sanskrit-derived names and terms. eg: Chandiran/Chaand for moon, Suriyan/Sooraj for sun, Dhinam/Din for day, Arasan/Raja for king etc.
I'm not a Tamilian, otherwise I could have given you more such examples. But whatever commonalities I have given above come under the definition of "culture".
Regards.
Vineeth,
On this topic I have been engaging with Indians on social media for a while and it is always same arguments, nationalism is a new concept so it does not apply to India, India is an ancient civilization, cultural similarity etc.
But the fact remains that an average Tamil communicates with an average Behari in English, that is when they can both speak English, else good luck.
In 1940s Dr. Ambedkar wrote a book "Pakistan or the partition of India". In that book he wrote, and I am paraphrasing from memory, that for 70 years there is an argument going on between Hindus and the anglos that India is not a nation. Hindus, when they hear that feels like someone has taken their clothes off in public.
So, this is an old argument that is been going on for about 150 years.
Back to my original point that India is a British creation,
1: was India ever ruled by a single ruler from Kashmir to Kanyakumari?
2: If British had not colonized India, would Indians have united themselves into a single country?
chances are almost zero.
As far as cultural similarity is concerned, if you travel through Europe, you will find cultural similarities between Poland and Ireland, but they are not a nation.
G Ali.
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