Govt launches independent audit of cashless economy initiatives to assess progress and impact

The federal government has announced an independent review and audit of its Cashless Economy Initiative to evaluate the design, implementation, impact, and governance mechanisms.

According to a news report, the review aims to assess how effectively the government is advancing its ambitious plan to transition both the public and private sectors towards a cashless, digitally enabled economy. The initiative is part of a broader vision to promote transparency, financial inclusion, and improved public service delivery while reducing financial leakages in government transactions.

Key components of the initiative include the establishment of a Digital Public Infrastructure (DPI) to facilitate the shift from cash to digital payments. This will involve digitalizing services, enabling payments through the RAAST payment rail, and developing a data exchange layer for seamless access to digital services across the country.

In addition to enhancing digital payment systems, the initiative includes measures to make digital payment processing more accessible to merchants, such as the deployment of QR codes and the reduction of duties on payment processing equipment. 

The government also aims to subsidise transaction fees for digital payments processed through RAAST, thereby encouraging businesses to adopt digital payment methods.

The initiative is also focused on expanding digital infrastructure by eliminating the Right-Of-Way (ROW) charges that telecom firms pay to lay optic fiber cables through roads, railway lines, and other infrastructure. With the Prime Minister’s directive, these charges have already been waived for federal entities like Pakistan Railways and the National Highway Authority, with provincial governments also expected to follow suit.

To ensure the initiative’s success, the government has set up a steering committee, chaired by the Prime Minister, which oversees three sub-committees focused on digital payments, the development of digital public infrastructure, and the digitization of government payments. These sub-committees track key indicators such as the number of merchants using digital payments, the percentage of digital transactions, and the progress of financial inclusion efforts.

In light of the initiative’s national importance, the government has sought the services of a consultancy firm through an international competitive bidding process to conduct an independent review. The firm will assess the initiative’s design, progress, and impact to ensure that it achieves its goals and operates effectively.