Pakistan to shift all government payments
to digital channels by next year
Pakistan is set to move all federal
and provincial government payments to digital channels by June 2026, as part of
its broader push toward a cashless economy.
In a briefing to the National
Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar, State
Bank of Pakistan (SBP) officials outlined the roadmap for digital
transformation.
Deputy Governor Saleem Ullah shared
that Pakistan has 226 million bank accounts, including 96 million unique
accounts, supported by 19,000 branches, 20,000 ATMs, 9,500 merchants, and
850,000 QR code merchants nationwide. He assured the committee that customers
will not be charged for cashless transactions.
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Committee Chairman Qamar urged the government to ensure uninterrupted mobile and internet connectivity, warning that frequent shutdowns disrupt livelihoods and undermine digital adoption.
Key initiatives announced
SBP Governor Jameel Ahmad revealed that “RAAST” accounts for overseas
Pakistanis in Gulf countries will soon be linked with the Buna payment system,
allowing direct remittances into local bank accounts. However, the facility
will only enable inward transfers.
He added that the central bank has
issued five digital payment licenses, including to Easypaisa, JazzCash, and
Mashreq Bank. By 2028, the goal is to bring 75% of young people into digital
financial services.
To support adoption, the government
will cover the 0.5% merchant fee on transactions, ensuring no additional burden
on businesses or customers.
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Minister of State for Finance Bilal Kayani noted that half of Pakistan’s economy remains undocumented, but confirmed that government salaries, pensions, tax payments, and utility bills will progressively shift to digital platforms. Supporting legislation will be introduced to formalize the transition.
Consumer protection challenges
The SBP governor clarified that banks will not compensate users for losses
caused by errors or fraud; responsibility will lie with the respective digital
channel or platform. To address consumer risks, the Standing Committee
recommended creating dedicated funds to safeguard users.
The finance secretary said that with
this initiative, Pakistan will rank among the first countries to implement a
nationwide, end-to-end digital payments ecosystem.
Source: Pro Pakistani