Naveed Ahmed

The partnership between the National Database and Registration Authority (NADRA) and 1 LINK allows 17,000 e-Sahulat outlets to be connected to a network of 37 banks, reports WealthPK. An official representative of e-Sahulat told WealthPK that the NADRA and 1 Link partnership has made it possible for them to add a new payment method to their app wallet for people in Punjab, Khyber Pakhtunkhwa, Sindh, and Islamabad Capital Territory (ICT).

The official said the e-Sahulat branches previously only validated biometric identification and distributed tokens for the Federal Board of Revenue (FBR) payments. With the new feature, however, payments to the FBR will also be made through e-Sahulat, she added. Similarly, payments from person-to-government (P2G) entities, such as federal organizations, the Capital Development Authority (CDA), telecommunication services, electricity bills, and university fees will be made through this mechanism. The e-Sahulat Wallets will also be used to pay maintenance fees for Bahria Town and Defence Housing Authorities, as well as for airline tickets, she added.
Moreover, government-to-person (G2P) payments can also be made through this feature. This makes it much easier for the pensioners who have to queue up at the banks for hours.

Together with a payment mechanism, this service will not only benefit people, but also support digital banking in Pakistan. According to a report called "Pakistan Banking Perspective 2022" by KPMG Taseer Hadi & Co. Chartered Accountants, the number of transactions through digital banking channels like mobile banking and internet banking went up by 143% and 55%, respectively.
Despite this growth in the banking sector, according to the State Bank of Pakistan (SBP), the total number of ATMs available in Pakistan is 15,741. The World Bank data shows that 11 ATMs per 100,000 adults are available in the country. It is the third lowest in the region compared to Afghanistan, Bangladesh, Nepal, India, Maldives, and Bhutan.

WealthPK/World Bank Research

To make the economy less dependent on ATMs, e-Sahulat Vault also works as an alternative to ATMs. This is possible because with the help of 1 LINK, the e-Sahulat platform can do business transactions with all commercial banks in Pakistan. This joint venture is a great idea and aims to achieve big targets, but it also has challenges to face. Aamir Raza, a senior banker at the Muslim Commercial Bank (MCB), said though inclusion of this facility in digital banking has reduced burden on the banking sector, there are also hurdles in its implementation. For instance, according to the e-Sahulat website out of 17,000 franchises, only 6,000 have the ability to prove biometric identity. So, to create a big impact, the remaining franchises also need to be biometric.

Moreover, credit facilities with e-Sahulat can also increase the scope of service. If data from the NADRA and financial information from the FBR can be authenticated, then it will be easier to provide credit facilities through this channel.

Credit: Independent News Pakistan-WealthPk