Page 43 - CMA Journal (Jan-Feb 2026)

Focus Section

Tokenization is, in fact, an added layer of security. Digitalized financial services are the most important sectors for rapid
properties are provided security in combination with growth, which also underscores the advantages of
blockchain. digitalization.
2) Pakistan Scenario FBR has taken steps to track digital trading, which would
improve tax collections. Key Advantages: Round-the-clock
Pakistan started online payment systems somewhere trading. Digital services are cheaper and faster compared to
around 2008. Since then, big improvements have occurred bank services. Digital trade process time is almost zero.
and are still accelerating. Here, over 80 million people use Small investors can participate in big projects through
smartphones, causing rapid increase of online users, with tokenization. Entire world trade occurs over an internet
over 2.8 billion transactions by early 2025, showing that a connection. Not much investment is required to start a
great number of people are using modern technology digitalized business.
instead of cash transactions.
4) Limitations of Digital Assets
To minimize cash transactions, the digitalization process is
spreading fast, where digital banking and fintech The basic fear is the inherent intangible nature of digital
institutions play a significant role. The government is assets, with volatility and uncertainty. They are all risk-prone
working proactively, with commitment and seriousness, to to scams and hacks. Volatile nature reduces certainty,
include all government receipts/payments through digital especially when no factors exist to assess importance or
systems, especially for loans, support to the agriculture value. Sudden crashes or windfall gains create low
sector, and the general public with low income, together confidence. Different countries have different rules and
with expanding the tax net and privatization process for regulations, which may change rapidly. Lack of
overall economic improvement. comprehension due to intangible nature. Weak digital
During the first half of the current year 2026, IT exports infrastructure can quickly raise doubts. Low literacy impedes
noted an increase of 19% with a target of $5 billion by end adoption of digitalization. Charms of the undocumented
FY 2026. Raast, developed by SBP, is being used for digital economy may deter people from joining the digital platform
payments. Over 48 million users have entered this platform, for obvious reasons.
with 53 banks linked by mid-January 2026. Increasing digital 5) Conclusion
transactions indicates that people have confidence in this
mode, in spite of the fact that a majority of the population is Digital Transformation is less about technology and more
illiterate. Fast adoption of digital transactions has improved about human expertise. It is a double-edged sword: amateur
the country’s image internationally. However, there is a dire use may bring negative impact, but virtuoso application
need for consumer safety to be the foremost priority, in view brings stunning gains. At present, Pakistan is in deep
of widespread cybercrimes. SBP has already issued financial crisis, carrying total federal loans of Rs.79 trillion by
necessary guidelines to commercial banks repeatedly to end of Dec 2025, and still rising rapidly, posing a serious
improve cybersecurity and ensure foolproof mechanisms, as challenge when apparently no proper roadmap exists.
many online users have already faced big financial frauds.
Pakistan Virtual Assets Regulatory Authority (PVARA) will It is imperative that the government engage the best
supervise, control, and regulate the Virtual Assets and available youth in digital technology, providing maximum
Virtual Asset Service Providers to ensure public interest in support to freelancers already contributing to innovations
line with international standards, restrict misuse, and and IT exports. They are contributing over 45% to IT exports.
prevent money laundering, regulating the system for the
overall benefit of the people. The government has recently For rapid expansion of digitalization, maximum funds may
announced large funds for youth digital training. be directed to improving digital infrastructure. Implement
clear-cut long-term digitalization policies and remove
Pakistan still has a major portion of undocumented bottlenecks in government framework, especially red tape,
economy whose size cannot be precisely measured, but
only estimated around 50% to 100% of GDP ($410 billion), as rapid changes in industrial trends require quick decision
and some assess it at $450 billion, a figure exceeding our making. Leaders must ensure that once a project is
GDP. It is doubtful that this parallel economy could join the announced and approved, it is tracked and completed on
Digital Transformation process. time. It is hoped that the huge undocumented economy
may gradually integrate into Digital Transformation
3) Advantages of Digital Transformation through incentives under the Digital Pakistan Vision and
Some countries are running from pillar to post in search of the upcoming National Digital Commission. No doubt
just one billion dollars of loan, aid, or credit facilities, industrial growth and agricultural productivity bring solace
whereas money is so easy to accumulate, even for to the distressed economy, yet the continuous downfall
individuals like Elon Musk, who became the first person with demands a speedy recovery, where Digital Technology is
an estimated net worth of $852 billion by February 2026, the only answer.
according to Forbes. His success story: from $2 billion at end
2012—$300 billion in 2021—$400 billion in 2024—$500 About the Author: Syed Shamim Ahmed is a senior Chartered
Management Accountant having Fellow membership of ICMA. He
billion in 2025—$600 billion in mid-Dec 2025—$700 billion retired as General Manager Finance from the Karachi Port Trust
by end 2025—$852 billion in February 2026. This illustrates (KPT) where he served for around 22 years in different positions. He
the power of digital technology. There were times when was also a member of the Karachi Dock Labour Board for 7 years.
wise men used to advise hard work for success, but now After doing his MBA from IBA Karachi, he started his initial career
smart work could lead one to the top of the world. IT and with Citibank and then served in Awami Autos (now Pak Suzuki).

ICMA’s Chartered Management Accountant, Jan-Feb 2026 41