The global experience is clear: a cashless economy, where digital payments are the norm, brings significant economic advantages. Consumers and businesses alike benefit from greater convenience, enhanced transparency, improved security against fraud and theft, and more robust economic documentation. It also widens financial inclusion, curbs tax evasion, and ensures a fairer distribution of the tax burden.
It is no surprise, then, that the world is moving rapidly toward a cash-free, contactless economy. The Covid-19 pandemic has only accelerated this trend. In this context, the finance minister’s emphasis on promoting a cashless economy merits unequivocal support.
As recently reported, the minister sees this shift not merely as an aspirational policy goal, but as a practical necessity for fostering long-term fiscal resilience, competitiveness, and inclusive growth. Speaking on Tuesday, he hinted at budgetary measures that would make digital payments mandatory in certain sectors. The broader goal: to reduce reliance on cash, boost documented transactions, and shift the tax burden away from salaried and compliant sectors toward those that have long evaded fair taxation.
The government plans to advance this agenda by incentivising digital transactions and discouraging cash-based payments. This will involve new tax measures and potential bans on cash transactions in key sectors. It is reported that a comprehensive set of measures is being finalised for inclusion in the budget to accelerate the transition to a digital-first economy.
With the Raast platform for real-time payments between individuals, businesses, and government entities already operational, the digital payment infrastructure is in place across retail, services, and the public sector. Indeed, electronic transactions have surged in recent years, and small vendors in urban areas have embraced digital wallets, instant payments, and QR-based systems.
Yet, while digital payments are becoming increasingly popular, it is premature to declare that we are on the cusp of a cashless society. Cultural resistance and fears of government monitoring have slowed adoption in some quarters. Poor broadband and mobile connectivity in many areas further hampers the expansion of electronic transactions. Cybersecurity concerns, too, remain a legitimate barrier.
Most importantly, vast swathes of the population — particularly women and rural residents — remain unbanked and without access to digital payment facilities. The government must address these systemic gaps and build a supportive ecosystem before the dream of a truly cashless economy can be realised.
