DAWN Editorials - 29th May 2025

[zarnishhayat]

Going cashless

THE global experience shows that a cashless economy, where digital payments are the norm, may offer numerous economic benefits: increased convenience for consumers and businesses, greater transparency in financial transactions, enhanced security against fraud and theft, improved economic documentation, wider financial inclusion, lower tax evasion, etc.

No wonder the world is moving fast towards a cash-free, contactless economy due to its advantages. The migration to a cash-free economy has picked up pace worldwide since the Covid pandemic. Seen in this context, the finance minister’s push for a cashless economy must be supported.

A media report quotes him as saying that “moving towards a cashless economy is not simply a policy aspiration but a practical necessity for long-term fiscal resilience, competitiveness and inclusive growth”.

On Tuesday, he hinted at introducing measures in the next budget to implement compulsory use of digital payments in order to maximise cashless economy and increase documented transactions. The idea is to encourage digitisation of the economy to “shift tax burden away from salaried individuals and compliant businesses to untaxed and under-taxed sectors”.

The authorities plan to push the financial digitisation agenda by incentivising digital transactions and punishing cash transactions through additional tax measures besides blocking cash payments in certain yet-to-be identified critical sectors. A host of measures are believed to have been finalised for inclusion in the budget to “accelerate transition to a digital and less cash-dependent economy”.

With the digital-first system, Raast, for real-time payments between individuals, businesses and government entities already in place, the authorities rightly believe that digital payment infrastructure is widely available and accessible across various sectors of the economy: retail, services, public sector, etc for migration from cash to cashless economy. We have seen a dramatic increase in electronic transactions in the last few years, with more and more people turning to digital transactions.

Not only that, even small vendors are adopting alternative forms of payment: instant payments, digital wallets and QR payments, especially in the urban areas. Given the increasing popularity of contactless digital payments, many of us may assume that we are becoming a cashless society. Far from it.

Besides cultural issues and the fear that the government is monitoring digital payment data impeding early adoption of digital-only transactions, the poor broadband and mobile connectivity across many areas remains a major challenge in expanding electronic transactions. For many, cybersecurity issues are a worry — not without justification though.

On top of that the vast majority of the population, especially women and residents of the rural areas, remain unbanked and unable to access the facility. This means the government would have to work in different areas to create an ecosystem for digital transactions before we can actually hope to become a cashless economy.

Published in Dawn, May 29th, 2025


Bread & bullets

AS if the anti-Pakistan venom being spewed by hyper-nationalist sections of the Indian media was not enough, sadly, India’s top leadership keeps indulging in similar behaviour. When holders of high public office resort to playing to the gallery, the chances of peace in the subcontinent are reduced significantly. Delivering a speech in Gujarat’s Bhuj town recently, Indian Prime Minister Narendra Modi used ill-advised turns of phrase when referring to Pakistan. Echoing dialogues usually found in 1970s Bollywood blockbusters, he urged Pakistanis to “eat bread” or else “my bullet is ready”. He also repeated allegations of Pakistan supporting ‘terrorism’. At another event in Gandhinagar, Mr Modi questioned the relevance of the Indus Waters Treaty. Perhaps it was his presence in his home turf of Gujarat that made the Indian leader resort to such bellicose rhetoric. Whatever the reasons, if India’s leaders continue to use such combative language, a peaceful resolution to South Asia’s problems in the near future is highly unlikely. The Foreign Office has criticised Mr Modi’s “theatrical flourish”, observing that such remarks are not expected from “the leader of a nuclear-armed state.”

Perhaps the belligerence of India’s leaders is a reflection of the quality of India’s current leadership. From the eloquence and statesmanship of Mahatma Gandhi and Jawaharlal Nehru, down to the quiet resolve of A.B. Vajpayee and Manmohan Singh, today India’s leaders have come down to mouthing Bollywood clichés. Such intemperate remarks give a chance to hawks in Pakistan to reply in the same coin. If Mr Modi and his colleagues in government are serious about promoting sustained hostility against Pakistan, this ill-advised policy will spell disaster for the entire subcontinent. India cannot assume that Pakistan will simply sit back and watch as it violates this country’s sovereignty as part of a ‘new normal’. As the post-Pahalgam hostilities illustrated, Pakistan is more than capable of defending itself. But the major risk is that India’s provocative moves may one day spiral out of control, and lead to another full-blown war in South Asia. Such a prospect, with both states possessing nuclear arms, is not a pleasant one. Instead of promoting war hysteria and anti-Pakistan hatred, India’s leadership needs to climb down and talk to Pakistan. A peaceful resolution to bilateral disputes is possible, should both sides be interested in pursuing this path.

Published in Dawn, May 29th, 2025


Patriarchal views

THE CII’s commitment to stalling pro-women legislation with conservative interpretations of religion and tradition is widely known. The Child Marriage Restraint Bill, 2025, passed by the National Assembly and the Senate, has now been shot down by the council as “un-Islamic”; it fixes the minimum age for marriage at 18 years. In addition, the Child Marriage Restraining Bill draft by the KP government was termed a violation of Islamic principles, while thalassaemia screening before marriage was declared optional for both sides and not compulsory. It is perplexing to witness our parliamentarians enable such regressive views, apparently to foster male control.

Over time, it has become as clear as day that protecting women and girls cannot depend on the whims of such patriarchal groups that have repeatedly obstructed progressive regulations. From formulating a women’s protection bill that permitted a husband to beat his wife “when needed”, opposing a minimum age for marriage to stating that DNA evidence holds secondary value in rape cases, it has not just defied all understanding, reason, science and basic human freedoms, but flouted Pakistan’s commitments under international law. The political leadership needs to adopt a more modern and assured stance for national progress. Pakistan’s human rights predicaments will be resolved when the public compels its leadership to transform lives. In a country where women are wedged between custom and obligation, educated influential religious leaders ought to take charge of the manner in which scripture is interpreted, and the parliament has to stop marching backwards. The legislature is obligated by the Constitution to legislate in line with Islamic injunctions. It is time to reconsider the role played by the CII as the way it vets bills, and waters them down, is taking us back in time instead of marching forward.

Published in Dawn, May 29th, 2025