Pakistan's shift toward a digital economy is gaining momentum, with nearly 88 percent of payments across the country now being made through digital channels, according to the Pakistan Banks Association (PBA).

The banking body said the rapid adoption of digital banking services reflects a major transformation in the country's financial sector, as more consumers and businesses rely on mobile banking, internet banking, digital wallets, and electronic payment systems for everyday transactions.

According to the PBA, the overall number of digital transactions has continued to rise steadily in recent months. The total value of digital payments has also increased by 12 percent, highlighting growing public confidence in electronic financial services.

However, the association clarified that a higher number of digital transactions does not necessarily translate into a proportionally higher monetary value, as many users are making smaller but more frequent payments through digital platforms.

Experts believe the expansion of digital banking is helping improve financial inclusion by giving more people access to secure and convenient banking services. The increasing use of digital payments is also expected to reduce reliance on cash and improve transparency in financial transactions.

The PBA said several key meetings on retail banking and the financial sector will be held later this year. These discussions will focus on the future of digital banking, enhancing customer convenience, strengthening cybersecurity, and promoting greater financial inclusion across Pakistan.

Industry observers say continued investment in digital infrastructure, stronger security measures, and greater public awareness will play a crucial role in accelerating Pakistan's transition toward a modern, cashless economy while supporting long-term economic growth and innovation.