In today’s global economy, digitalization has become a transformative force, reshaping how businesses operate and how consumers interact. From banking and financial transactions to business management and development, most operations have moved to digital platforms, enhancing efficiency, accessibility, and operational capability.

Even in Pakistan, many businesses—especially those operating at national and international levels or engaged in exports—have adopted digital practices. According to various reports, digitalization has become a necessity at the macro level, as it is increasingly difficult to manage business operations without it.

However, challenges become more evident at the micro level, where small businesses are vital in providing daily essentials to the population. As globalization intensifies, consumer behavior has evolved rapidly. Buyers now expect modern, technology-driven experiences. This shift has had a deep impact on Pakistan’s microfinance and microeconomic sectors, which play a key role in promoting financial inclusion and empowering low-income individuals and small-scale enterprises.

Despite this growing need, several obstacles continue to hinder the digitalization of micro-level businesses. One of the primary barriers is low digital literacy—most small business owners, particularly in rural areas, lack the skills necessary to operate digital platforms effectively. Additionally, Pakistan’s regulatory infrastructure is weak and often discouraging. Institutions like the FBR and SECP operate in a bureaucratic and sometimes corrupt manner, making it difficult for small entrepreneurs to register their businesses and access benefits such as direct bank transfers. Alongside this, many small business owners remain hesitant to embrace change. A deeply rooted traditional mindset and a lack of trust or familiarity with digital tools often lead them to continue relying on cash-based transactions.

In contrast, digital adoption in the retail and food sector offers a compelling success story. For........

© The Spine Times