Pakistan’s cash economy has expanded to a record level even as poverty in Pakistan has climbed to its highest point in more than a decade. New State Bank data shows currency in circulation crossing Rs11.94 trillion in fiscal year 2025-26, while government survey figures put the national poverty rate at nearly 29 percent. Together, these two trends paint a troubling picture of an economy that remains heavily undocumented and increasingly unequal, despite years of digital banking investment and reform promises. Background For more than a decade, Pakistan’s policymakers have promoted…
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