Pakistan extends digital wallet use in aid distribution program deployment

Pakistan has launched its first aid distribution program via a digital wallet.

The so-called 2025 Ramadan Relief Package has Rs. 20 billion ($235,618) attached and was initiated from the top, with prime minister Shehbaz Sharif calling for his ministries of IT and food security to develop modern ways for distributing subsidies.

“The Prime Minister provided us the trust and flexibility needed to build a system that aligns with the Digital Nation Pakistan Bill, moving us toward a fully digitized economy,” said Shaza Fatima Khawaja, federal minister for IT and Telecommunications, as reported by Techjuice.

The digital platform has generated more than 900,000 digital wallets, according to Techjuice, with the employment of digital wallets as the main distribution system for financial aid representing a milestone for the country. Digital wallets have become a significant component of the country’s financial environment, with platforms such as JazzCash, EasyPaisa and others contributing to financial inclusion.

The initiative emphasizes reaching digitally excluded Pakistanis with financial services. “This is more than a one-time relief package,” Fatima Khawaja said. “It’s about fostering long-term digital habits that empower individuals and integrate them into the formal economy.”

Tariq Malik, former chairman of NADRA, has previously said in an interview with Biometric Update that the critical significance of digital wallets in Pakistan’s Digital Public Infrastructure (DPI) policy, saying, “Digital wallets are poised to be a cornerstone in Pakistan’s DPI strategy.”

Pakistan has one of the highest rates of unbanked people in the world, with 53 percent of the adult population in financial exclusion. A recent project used aid tokenization to promote financial inclusion by providing access to digital wallets in one of the most marginalized regions of Pakistan.

Aid tokenization in philanthropy cooperation

Lahore-based non-profit Tayaba collaborated with Nepalese blockchain company Rumsan- Rahat, which focuses on social impact, to launch the first ever tokenization of philanthropy in Pakistan. The aid tokenization initiative will distribute H20 (Help-2-Others) Wheels to 100 female-headed households in Ghokti district of Sindh. The platform enables real-time tracking of distribution, with beneficiaries able to receive H20 Wheels by redeeming tokens, reports Pakistan Today.

“Tayaba is an unconventional social organization that prioritizes efficient resource utilization, which is reflected in our innovative and high-impact yet low-resource approach,” said Nida Sheikh, CEO of Tayaba. “By embracing digital technology like Rahat, we can streamline our processes and reduce our environmental impact while ensuring transparency and accountability in the aid distribution process.” Bilal Bin Saqib is the founder of Tayaba.

The project will charge beneficiaries via QR codes or OTP verification. Co-founder of Rumsan, Rumee Singh, said he and his team were “thrilled” to partner with Tayaba to bring about positive change by utilizing blockchain.

Mobile money to boost financial inclusion

Development Asia, an initiative of Asian Development Bank, notes that only 21 percent of adult Pakistanis have access to a bank account or mobile money provider, with women particularly susceptible to financial exclusion. Many Pakistanis rely on informal networks for financial institutions while women are only half as likely as men to have access to banking services.

Development Asia is promoting mobile money as a way to boost financial inclusion. With only 10.8 commercial bank branches per 100,000 adults (as of 2022), mobile money would remove the need to visit a physical bank branch. The Covid-19 pandemic shifted consumer behavior and accelerated the transition, with mobile and online transactions rising from 17 percent in early 2020 to 75 percent by September 2024, as per the State Bank of Pakistan.

Raast is the name to watch, as the country’s first instant payment system, which launched four years ago. It now counts over 39.5 million registered Raast IDs. Raast offers instant digital person-to-person (P2P) and person-to-merchant (P2M) transactions, with users sending or receiving money using their mobile numbers and bank accounts. Development Asia suggests that digital ID systems could facilitate digital finance and access to tax payments, pensions and other services. Bridging the gender gap is another area of focus.

The Asian Development Bank is implementing the Women Inclusive Finance Sector Development Program (WIFSDP). While that’s a mouthful, the program is more focused, as it supports the State Bank of Pakistan in training and deploying more women branchless banking agents in rural and remote areas, and working on reforms in policy, regulatory and institutional frameworks.

Article Topics

digital economy  |  digital ID  |  Digital Nation Pakistan Bill  |  digital public infrastructure  |  digital wallets  |  financial inclusion  |  humanitarian  |  Pakistan  |  social protection