During a special meeting in Riyadh, Pakistan's Finance Minister, Muhammad Aurangzeb, revealed the government's inclination towards embracing digital currency. Highlighting challenges faced by women who receive government funds, Aurangzeb emphasized the need for a transition to digital wallets to ensure the secure distribution of cash assistance.
Aurangzeb noted that some women in Pakistan encounter difficulties as male family members often appropriate funds meant for them. Expressing women's preference for digital wallet disbursements, the Finance Minister underscored the necessity of adopting digital currency to address this issue effectively.
Economic Progress and Challenges
Muhammad Aurangzeb also commended Pakistan's strides in enhancing its economic strength, citing improved revenue collection strategies and deficit reduction as indicators of positive growth. However, he acknowledged that a significant portion of the country's economy remains undocumented, posing challenges to revenue generation and economic stability.
IMF and Economic Resilience
Despite economic hardships exacerbated by the COVID-19 pandemic, Pakistan remains resilient. The International Monetary Fund (IMF) highlighted the challenges faced by low-income countries, including Pakistan, but expressed optimism about global economic recovery. Pakistan's pursuit of a digital currency aligns with efforts to bolster revenue collection and document its economy, fostering stronger ties with the IMF.
Prospects for Digital Currency
As Pakistan explores digital disbursement methods and witnesses increasing demand for digital wallets, there arises potential synergy with the central bank's considerations for developing a digital currency. Aurangzeb's remarks suggest a forward-looking approach towards leveraging digital innovations to enhance financial inclusion and economic stability in Pakistan.
Finbold
