An Overview of the G2P Payments Sector in Pakistan
Pakistan is on the path to digitizing a large share of its government flows to people. The country serves as an example of how public and private institutions together can move a country towards a digital financially inclusive system. Government and public actors have created the enabling environment and provided seed funding, while private actors are developing the infrastructure and services and developing a long-term business case. The initial efforts to distribute social cash transfers electronically have now been expanded to include a wider variety of government flows. In fact, social cash transfer programs constitute about 11% of total government payments, while salaries make up 68% and pensions 21%. Among social cash transfers, the Benazir Income Support Programme (BISP) represents the largest in terms of number of beneficiaries and volume of payments. CGAP estimates that if things keep moving forward, as they have in recent years, within 5 years over 75% of government flows could be digitized.