Page 66 - CMA Journal (July-August 2025)

Pakistan’s Fintech and Focus Section

Data Analytics Landscape:

Lessons from MENA Countries

for a Data Powered Economy

By: ICMA Research and Publications Department

Preamble Figure 2: Snapshot of Digital Transactions in Volume & Value
.
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This article by the Research & Publications (R&P) 2500 18 83 50 2,141.10
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Department explores the evolution of Pakistan’s fintech 2000 1,563.60 1,699.40
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and data analytics landscape in 2025 and compares it with 1500 668.1 699.9 9.9
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668.1
565.3
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developments across the MENA region. It highlights the 1000 565 .3 3 3 3 3 3 3 3 3 23.8
23.8
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20.8
47.9
500 17.0 20.8 33.33 3 36.3 43.3 47.9
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rapid rise of digital payments, wallets, startups, and
0 0

Q1-FY24 Q2-FY24 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25
cryptocurrency in Pakistan, while also addressing Q1-FY24 Q2-FY24 Q3-FY24 Q4-FY24 Q1-FY25 Q2-FY25 Q3-FY25
challenges such as regulation, funding, and cybersecurity.
s
i
M
a
The article further reviews MENA’s governance Digital Transac ons (Volume in Million) Digital Transacttions (Value in Trillion)
frameworks, national data strategies, and case studies to Source: SBP, Payment System Transaction
identify lessons for Pakistan. It concludes with policy
transaction value (Rs. 117 trillion) still flows through
recommendations to guide the country toward a more
over-the-counter (OTC) channels, underscoring a gradual
coordinated and data-driven digital economy.
but uneven shift from cash to digital.
Pakistan’s Fintech and Data Analytics Major players such as JazzCash, Easypaisa, NayaPay, and
Landscape 2025 SadaPay dominate wallets and payments, while startups
like Abhi and CreditBook leverage analytics to extend
Pakistan’s fintech and data analytics ecosystem in 2025 is
expanding rapidly, supported by strong mobile and credit and financial access. Despite progress, 71% of
broadband penetration. By June 2025, subscriptions had transaction value continues to flow through cash and OTC
reached 197.8 million, with monthly data usage ranging channels, highlighting an uneven transition to digital.
from 8.1 to 8.76 GB, reflecting a digitally active In comparison, the MENA region is projected to see its
population (see Figure 1). AI market reach USD 9.34 billion in 2025, with growth
driven by top-down strategies—centralized data
Figure 1: Monthly Data Usage/ Subscriber by CMO (GBs)
platforms, open banking, and smart-city analytics.
Pakistan’s path, by contrast, is grassroots-led, built on
9
mass adoption of low-value, high-volume payments
8.5 enabled by affordable data.
8.76 8.73
8 8.35 8.57 With financial inclusion at 64% in 2025 and a target of
8.03 8.1
75% by 2028, Pakistan is well-positioned for
7.5 transformative growth. Yet challenges such as
2 25-Jan 25-Feb 25-Mar 25-Apr 25-May 25-Jun
a
-
Source: PTA fragmented regulation, uneven rural access, unstable
funding, and cybersecurity risks must be addressed.
This connectivity is fueling a surge in digital finance. Learning from MENA’s coordinated governance and
Transactions grew from 565 million in Q1-FY24 to 2.14 sectoral pilots could help Pakistan shift from fragmented
billion in Q3-FY25, with values rising by 182% to Rs. 47.9 progress to a structured, data-powered digital economy.
trillion. Mobile apps now drive most payments, while the Fintech Adoption in Pakistan
Raast system processed 368 million P2P transactions
worth Rs. 8 trillion in Q3-FY25, underscoring the Pakistan’s fintech sector has expanded rapidly in recent
importance of central bank–backed infrastructure. years, attracting more than USD 385 million in funding
since 2019. Investments peaked at USD 152 million in
The Payment Systems Quarterly Review (Q3-FY25) shows
retail payments surged to 2.4 billion transactions, with 2022, fueled by strong demand for digital financial
mobile apps handling 1.7 billion transactions worth Rs. services, but declined sharply in 2023 amid economic
27 trillion. Overall, digital payments now represent 89% challenges and investor caution. Encouragingly, the
of retail transactions by volume, though 71% of sector began to rebound in 2024 with USD 26.3 million
raised, followed by USD 52 million in 2025.
64 ICMA’s Chartered Management Accountant, Jul-Aug 2025