Bridging the Income Inequality: How Cryptocurrency and Artificial Intelligence (Al) can Help Pakistan – By: Zaib U Nisa
Pakistan faces significant income inequality, with a small elite holding a disproportionate share of wealth and power. The Richest 1% control over 20%, leaving millions behind. According to the World Bank, a staggering 50% (around 106 million in 2023) lack access to formal banking. This financial exclusion hinders economic growth and traps many in poverty.
Despite a booming tech industry and a young, tech-savvy population, economic opportunities remain concentrated. However, cryptocurrency and Artificial Intelligence (AI) possess the potential to be game-changers in this domain.
Traditional banks are out of reach for many Pakistanis, especially in remote areas. It cuts them off from essential financial services. Cryptocurrency, with its decentralized nature, bypasses banks altogether. People can use smartphones and digital wallets to manage their money, potentially bringing millions into the financial fold.
An estimated 9 million Pakistanis work abroad, sending over $34 billion in remittances (World Bank, 2022) to support families. Yet, traditional money transfers are slow and expensive. Cryptocurrency offers a faster, cheaper, and more secure way to send remittances, putting more money directly into the hands of those who need it most. It can be life-changing for families surviving on less than $1.90 a day.
While cryptocurrency is transforming the way we send money, AI is transforming the way we access capital and create economic opportunities. AI isn’t science fiction; it’s a practical tool for economic empowerment. Many small businesses, the backbone of Pakistan’s economy, struggle to get loans due to a lack of traditional credit history. AI can analyze alternative data to assess creditworthiness, allowing more people to access funding and create jobs.
Pakistani farmers grapple with unpredictable weather and limited resources. AI can analyze data on soil, weather patterns, and crop yields, potentially leading to higher incomes for millions of rural families.
Freelancers in Pakistan often struggle to find good clients. AI-powered platforms can better match them with projects based on skills and experience, connecting them with international clients and potentially boosting their earning potential.
Cryptocurrency and AI hold immense promise for reducing income inequality in Pakistan. By embracing these technologies and preparing for the future, Pakistan can create a more equitable society. This requires investment in digital literacy programs and regulatory frameworks that balance consumer protection with innovation. With a focus on responsible adoption, Pakistan can leverage these technologies to bridge the income gap and create a brighter economic future for all its citizens.
