Government Plans to Launch National Digital Wallet for a Cashless Economy

Pakistan’s government is taking a bold step towards a cashless future with the introduction of a National Digital Wallet. Facilitated by the National Database and Registration Authority (NADRA), this innovative initiative includes a digital rewards system. It will convert a percentage of utility and fuel bills into digital wallet credits, revolutionizing transactions and expanding digital horizons. The collaboration between NADRA and an Electronic Money Institution promises a significant leap in the nation’s digitization journey.

The National Digital Wallet encourages digital transactions and rewards users with digital credits for utility and fuel bill payments, including telecommunication airtime credits. The government contemplates a 1% reward for digitally paying electricity, gas, and fuel bills. Additionally, users will receive a 10% reward (equivalent to Rs 100) for every Rs 1,000 airtime credit acquisition. The scheme may extend incentives for fuel and utility bill payments, fostering widespread adoption of digital transformation.

Designed to provide various amenities, the National Digital Wallet enables citizens to digitally hold and access their national ID on smartphones. Users will be rewarded for payments made through the platform. Implementation follows guidelines developed in collaboration with stakeholders, with formal approval pending from the Economic Coordination Committee (ECC) and the cabinet.

A notable feature is the wallet’s integration with different FinTech applications and services via OpenAI. NADRA, in collaboration with Karandaaz, will determine maintenance and usage charges. This initiative aims to boost cashless transactions and enhance financial inclusivity in Pakistan, leveraging digital identity and biometric technology.

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