Make digital payments mandatory: Easypaisa CEO.

ISLAMABAD -- The president and CEO of easypaisa/Telenor Microfinance Bank (TMB), has presented a proposal to the government, urging them to reduce taxes on smartphones and provide incentives for retailers to embrace digital payment methods in order to formalise the economy in the upcoming budget.

M Mudassar Aqil highlighted the positive impact of the Punjab government's initiative, where making digital payments results in a lower GST rate compared to cash payments. He suggested that the federal government adopt a similar model and include easy paisa digital payment methods alongside credit cards to bring the undocumented economy into the fold. He emphasised the need for digital payments to be accessible to all and recommended that the government enforce regulations requiring retailers to accept digital payment methods.

While discussing the promotion of digital payment systems, Aqil proposed the implementation of measures such as lower taxes on smartphones, widespread acceptance of digital payments, and incentives for retailers to adopt digital payment methods while discouraging cash transactions. During the interview, the TMB CEO also shed light on the challenges posed by the fluctuating dollar exchange rate, particularly its impact on technology costs.

As a significant portion of TMB's expenses is technology-related and denominated in dollars, the bank has faced significant effects from the volatility of the dollar. Despite these challenges, the bank absorbs the costs to ensure affordable services for its users.

Looking towards the future plans of TMB and...