In a major push toward economic modernization, Prime Minister Shehbaz Sharif has directed the immediate formation of a high-powered working group to lead the complete digitization of Pakistan’s economy. The directive was issued during a high-level meeting held in Islamabad, underscoring the government’s renewed focus on leveraging technology to formalize and streamline the country’s economic framework.
The Prime Minister emphasized that digital transformation is no longer optional but a strategic necessity for Pakistan’s long-term growth and stability. “Eliminating the parallel informal economy is not just about improving documentation—it’s about unleashing the true potential of our national resources,” the premier stated during the meeting. He reiterated that the informal economy, which exists largely outside the regulatory and taxation frameworks, continues to hinder economic transparency, planning, and equitable growth.
The proposed working group is expected to comprise experts from multiple domains, including finance, technology, governance, and regulatory bodies. Its mandate will include formulating a national digitization roadmap, recommending legislative frameworks, and identifying key technological enablers that can accelerate the transition to a fully digital economy. The initiative is in alignment with Pakistan’s broader digital transformation goals under the government’s “Digital Pakistan” vision.
One of the successful case studies highlighted during the session was the recent use of a digital wallet system to distribute the Ramazan relief package. Prime Minister Sharif praised the initiative, calling it a milestone in transparent governance. He instructed that the digital wallet framework be expanded to other government-led welfare and subsidy programs, citing its ability to ensure real-time monitoring, targeted delivery, and reduced leakages.
“Technology allows us to build systems of trust, accountability, and inclusion,” Sharif noted, pointing out that tools like digital wallets, blockchain-enabled registries, and national payment gateways can play a transformative role in reducing corruption and increasing citizen confidence in public institutions.
Experts and industry analysts have lauded the move as a step in the right direction. Pakistan’s informal economy, estimated to be almost 40% of its total GDP by some studies, presents a significant challenge to sustainable fiscal planning and development. Digitization efforts—if implemented effectively—could bring millions of undocumented transactions into the formal economy, widening the tax base, improving service delivery, and enhancing investor confidence.
Financial technology (fintech) players are likely to play a pivotal role in this transition. With digital banking licenses already being issued and open banking protocols in early discussion stages, Pakistan’s financial ecosystem is gradually aligning itself with global digital standards. The introduction of faster payment systems, e-wallets, biometric verification, and integration of NADRA data are all parts of the puzzle that could come together under this new initiative.
While the task ahead is monumental, the political will at the highest level may prove to be the catalyst the country needs to fast-track digital adoption across both public and private sectors. Analysts argue that sustained policy backing, stakeholder collaboration, and investment in digital infrastructure will be crucial to the initiative’s long-term success.
If executed with precision and transparency, the full digitization of Pakistan’s economy could redefine the country’s economic landscape and propel it into a more equitable, efficient, and tech-enabled future.