Karachi, April 25, 2025 – The Pakistan Stock Exchange (PSX) has strongly advocated for the digitization of all payment systems in its proposals for the upcoming federal budget 2025–26.
According to the PSX, digitizing payments is no longer a luxury but a necessity for achieving proper economic documentation, expanding the tax base, and ensuring transparency across sectors of the economy.
In its detailed recommendations to the Ministry of Finance and the Federal Board of Revenue (FBR), the PSX emphasized that a robust taxation policy is critical for economic development. The stock exchange underlined that a transparent and documented economy is the foundation of sustainable growth, job creation, and social stability. The PSX stressed that in the modern era, data is the most vital asset—and effective tax revenue generation relies on access to complete, accurate, and timely data.
Currently, sectors like real estate, agriculture, and large portions of the trade and services industries remain largely undocumented, despite contributing significantly to Pakistan’s GDP. The PSX stated that until these sectors are brought under the formal net through digitization and documentation, Pakistan’s fiscal deficit will continue to hinder national progress.
To address this, the PSX called on the government to introduce a comprehensive national policy aimed at the full digitization of payment systems. With an estimated 35–50% of Pakistan’s economy still operating in cash, the PSX argued that existing technologies could convert much of this into digital transactions, allowing for proper tracking and taxation.
Furthermore, the stock exchange recommended incentivizing the private sector to adopt digitized solutions. Encouraging cashless transactions through policy support and tax incentives would not only improve documentation but also significantly reduce tax evasion.
To make these efforts effective, the PSX also proposed granting autonomy and resources to the Pakistan Bureau of Statistics. Equipping the bureau with advanced analytics capabilities would ensure the collection and integrity of national economic data, leading to more informed policymaking.
Regarding the capital markets, the PSX reiterated that they remain one of the most well-documented segments of the economy. The stock exchange noted that investors and listed companies are fully documented, aligning with the broader objective of expanding the tax net. Enhancing capital markets is, therefore, not only essential for investment and savings but also for advancing documentation.
The PSX concluded that only by integrating modern digitization tools with sound fiscal policy can Pakistan tackle long-standing structural issues such as a narrow tax base, low savings, and low investment rates. The capital market, with its capacity for innovation and corporatization, can play a vital role in achieving economic resilience. The PSX expressed its commitment to support national goals through financial inclusion, digital infrastructure, and policy collaboration.