Islamabad is set to become Pakistan’s first fully cashless city by December 31, 2026, as the government accelerates efforts to introduce digital payment systems across government departments, commercial establishments and businesses operating in the federal capital. Under the Cashless Islamabad initiative, authorities have established a deadline for transitioning public-sector transactions away from cash payments while working to bring all merchants in the city into the digital payments ecosystem. The initiative is part of the government’s broader strategy to improve financial transparency, strengthen tax monitoring and expand the use of electronic transactions across the country.
The decision was taken during an important meeting on the Cashless Capital project chaired by State Minister for Interior Tallal Chaudhry in Islamabad on November 13. According to an official statement issued by the Ministry of Interior, the meeting reviewed progress on the initiative and discussed the measures required to complete the transition within the announced timeline. Chaudhry emphasised that consultation with relevant stakeholders and incorporating their suggestions would be important for the successful implementation of the project. He said the initiative was progressing rapidly under the special instructions of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi, who have made the establishment of a cashless capital a government priority.
The state minister also recalled that Interior Minister Mohsin Naqvi had promised the prime minister that Islamabad would become Pakistan’s first cashless city and the world’s first cashless capital. As part of the implementation plan, the government has announced that cash payments will no longer be accepted in departments operating under the Islamabad Capital Territory administration and the Capital Development Authority (CDA) after November 30. Residents and businesses dealing with these institutions will therefore be required to use available digital payment channels for their transactions. The government is also targeting December 31 for bringing all merchants operating in Islamabad into the cashless payments system.
According to Chaudhry, approximately 26,000 merchants in Islamabad have already been connected to digital payment facilities, representing an important step towards expanding electronic transactions across the capital’s commercial network. The government intends to make digital payment options available at every level of economic activity, including street vendors, small retailers, commercial markets and major business centres. This approach is intended to ensure that the transition is not limited to large businesses and established commercial organisations but also reaches smaller merchants and everyday service providers. The state minister said that the relevant institutions would coordinate their efforts to transform Islamabad into a modern digital city, while representatives of the banking sector attending the meeting appreciated the initiative and assured the government of their full cooperation.
CDA Chairman Sohail Ashraf, banking sector representatives and other senior officials also participated in the meeting. Their involvement reflects the importance of coordination between government institutions, financial organisations and businesses in establishing the infrastructure required for widespread digital payments. The initiative is expected to increase the use of electronic transactions, improve the documentation of financial activities and strengthen the government’s ability to monitor economic transactions. By reducing dependence on physical cash, authorities also aim to support greater transparency in financial dealings and improve the monitoring of commercial activity across the federal capital.
Prime Minister Shehbaz Sharif has repeatedly highlighted the importance of introducing digital transaction systems throughout Pakistan, describing the transition towards a cashless economy as a key requirement for improving transparency and documenting economic activity. During a meeting last week, the prime minister directed relevant authorities to prepare a clear roadmap supported by time-bound targets for establishing a 100 per cent digital payments system across the country. He said promoting a cashless economy remained among the government’s top priorities and added that positive results from ongoing digitisation efforts were already beginning to emerge. Officials also informed the meeting that work on digitising payments across federal and provincial government institutions was progressing rapidly, with most institutions expected to complete the transition to fully digital payments by December 2026.
The Cashless Islamabad project represents a significant step in the government’s wider digital payments strategy, with the December deadlines setting specific targets for both public institutions and private merchants. Its implementation will depend on the availability of reliable digital payment facilities, cooperation from banks and financial service providers, and the readiness of businesses and consumers to adopt electronic transactions. If completed according to the announced schedule, Islamabad will become the country’s first city to move towards a fully cashless operating system, potentially providing a model for expanding digital payments infrastructure to other cities across Pakistan.
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