The linking of the Pakistani Raast with the Arab Monetary Fund’s Buna is one of the central planks of the government’s drive to a cashless economy, which sounds like a very science fiction-y sort of idea, but which actually makes a lot of sense. It is not only designed to improve the experience of transmission of remittances to Pakistan, but it will also encourage employers to get onto the Buna platform, pressed by employees who wish to get their salaries and wages pn it, so they can send it to Pakistan. The National Assembly Standing Committee on Finance was also informed on Friday by State Bank of Pakistan Governor Jameel Ahmed that all federal and provincial payments would be digitized by June next year, while all payments by state-owned enterprises would be digitized by December. The payrolls alone run into the millions, and this would go a long way to eliminating cash or cheques. It would also be seen as an advantage that this would keep the payments within the banking system. However, it would require many employees in lower grades who do not have accounts to obtain them.
Already, Punjab and Sindh have shifted their payrolls to Raast, and their experiences have shown the way. The first issue that has arisen is that there does not seem to be enough technical expertise within the institutions to handle the change. A hidden problem in Sindh has been the difference in employees’ banks, with one bank being less helpful than another. The implementing government has a responsibility to its employees, and must ensure that sufficient support is available, both before and after payday, to save its employees from feeling abandoned.
Once the government makes all its payments digitally, to contractors and those that provide it goods and services, the next step will be ensuring that it only receives cashless payments. Cash would enclose cheques, thus ensuring that all government revenue comes from traceable sources. One great advantage is that while some pay their taxes scrupulously, they accept payments from evaders. In a cashless economy, those evaders would have to make payments from (traceable) bank accounts. However, while there may ber revenue collection advantages, the real purpose of a cashless economy is to convenience the common man. The SBP Governor naturally has to take a deep interest in it, for the process involves a new form of money, and must keep that uppermost.
