For many years, individual consumers and businesses operating in Pakistan have experienced considerable challenges when accessing basic financial services due to a lack of regulatory clarity and issues related to inadequate regulatory guidelines. However, this year has started off on a rather positive note with the nation’s government unveiling this past month that it will be supporting cryptocurrency transactions and may introduce banking services to support the nascent sector.
However, many challenges still persist such as Pakistan’s residents not being able to access basic platforms such as PayPal due to improper regulations. Moreover, Pakistani consumers are unable to use major platforms like Amazon which are quite accessible in more advanced Asian economies like the UAE and other nations as well. Despite these issues, Pakistan came forward recently with the aim to support Bitcoin and crypto trading by permitting local banks to work with digital assets platforms.
In 2018, the State Bank of Pakistan had announced that it would not be encouraging or supporting transactions made with cryptocurrencies. But it now appears that Bitcoin and digital assets are not merely here to stay. They are set to impact the broader financial system in a positive manner. So it makes a lot of sense for Pakistan to create a regulatory framework that will ensure compliant crypto trading and investing.
In addition to crypto adoption, Pakistan is now seeing unprecedented Fintech adoption. A wide range of Fintech apps such as Easypaise, Jazz Cash, among many others have made it easier for locals to transact in a seamless manner. There has also been a significant surge in digital commerce apps such as Daraz.pk and Alibaba looking to enter Pakistan‘s fast-evolving e-commerce and Fintech space.
Notably, Pakistan is now home to one of the world’s largest freelancer and gig economy markets. It is also where many people under the age of 30 are now aggressively entering the workforce. However, Pakistan’s GDP is well below the $500 billion mark, while its population is approaching 250 million. In the years ahead, the Asian country is poised for major economic growth if current Fintech and crypto adoption trends continue. But a lot will depend on progressive regulatory policies to ensure consumer protection and enable responsible inn0vation.