ATMs are everywhere in Pakistan, more than 20,000 across the country. Even though digital payments are growing over the time yet 98% of ATM usage still involves cash withdrawal. Pakistan's ATM culture is not contracting despite digital revolution. In fact it's expanding. This is not a sign of progress, it's a symptom of deeper and serious problem. The ATM isn't dying in Pakistan. It's thriving because cash is still the king and that is costing us billions.

Pakistan's digital adoption is impressive on paper. In 2026, mobile app based payments have reached 2 billion transactions worth Rs 33.7 trillion. Digital platforms now account for 90% of retail payment volume.

If there's so much adoption for digital banking in Pakistan then why are there more ATMs than ever?

In year 2025-2026, the number of ATMs grew from 18,900 to over 20,300. In contrast India experienced a decline in ATM numbers despite far higher digital payment volumes.

Here's the reality: mobile wallets and banking apps aren't replacing cash, they are simply moving it around digitally before someone withdraws it. Just like the SBP notes, digital channels are "transitional tools" rather than endpoints.

Pakistan's E-commerce market is worth $7-8 billion annually. Yet 70-80% of online transactions still use cash on delivery.

Here's what really happens with every order:

  1. A consumer withdraws cash from an ATM.
  2. A delivery network collects that cash.
  3. The cash is deposited back into banks.
  4. Another consumer withdraws it again.

Each cash on delivery triggers at least ONE ATM TRANSACTION!

At large scale it creates millions of withdrawals that sustain ATM networks.

In Pakistan cash in circulation has reached approximately Rs 10.9 billion. Regulating ATM causes too much cost for the banks including electricity, cooling system, security, increasing cash on daily basis. All these costs fall on citizens whether they use cash or not. Citizens have to pay higher fees, get low interest and costly loans to fulfill expenses.

ATM is not dying because people are addicted to it, they don't want to leave cash. According to an economist, Pakistan will keep making ATM, till people keep withdrawing money "just in case".

The cash culture is still strong, ATM isn't anywhere close to die so it's not good for us and our economy. The real question isn't why ATMs are multiplying. It's why, after a digital revolution, we still need them to.