In a significant push to advance Pakistan’s digital economy and reduce dependence on cash, the State Bank of Pakistan is preparing a strategy to simplify digital payment mechanisms for traders. The plan was disclosed during a recent high-level meeting focused on promoting a cashless economy, chaired by Prime Minister Shehbaz Sharif, according to a statement from the Prime Minister’s Office.
Officials briefed the prime minister on the latest developments following the establishment of three specialized committees: the Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee, and the Government Payments Committee. These bodies were created during an earlier session and have now been fully constituted, each tasked with driving specific facets of Pakistan’s digital transformation agenda.
During the meeting, the committees presented detailed strategies and proposals aimed at integrating digital financial tools more deeply into the country’s economic framework. Prime Minister Shehbaz Sharif emphasized that a robust digital transaction system is crucial for bringing transparency and accountability to Pakistan’s economy. He noted that by moving away from cash, the country can curb leakages, document more transactions, and ultimately broaden the tax base.
The central bank’s forthcoming initiative is expected to focus heavily on facilitating digital payments for small traders and shopkeepers, who form the backbone of Pakistan’s retail and informal economy. A facilitation package is reportedly being designed to encourage these small businesses to adopt digital transaction channels, making it easier and more attractive for them to move away from traditional cash dealings.
The government also outlined ambitious targets under its broader digital roadmap. It aims to increase the number of mobile app users engaged in digital payments from the current 95 million to 120 million, double the merchants accepting QR code payments from around 0.9 million to 2 million, and expand the volume of digital transactions from Rs7.5 billion to Rs12 billion. These figures underscore the scale of Pakistan’s aspirations to embed digital financial services into daily commerce.
Meanwhile, the meeting also reviewed progress on various projects under the Digital National Pakistan vision. The Digital Economy Project has officially commenced, setting in motion multiple streams of work to digitize different aspects of governance and business. Notably, the Islamabad City mobile app, which already offers 15 services, has crossed 1.3 million downloads. The app has facilitated collections totaling Rs15.5 billion under the ICT Excise and Taxation head, reflecting growing user engagement with digital platforms.
Efforts are also advancing on the Digital Pakistan ID project, which aims to create a secure digital identity framework for citizens. Additionally, there are active initiatives to roll out Wi-Fi internet services across Islamabad, covering hospitals, universities, government offices, public parks, and metro bus routes. The prime minister has instructed that similar facilities be extended across other federal territories, including Azad Jammu & Kashmir and Gilgit-Baltistan, to ensure equitable access to digital infrastructure nationwide.
By easing digital payment systems and pushing tech-driven financial inclusion, Pakistan hopes to lay the groundwork for a more transparent, efficient, and competitive economy. The State Bank’s strategy, coupled with these broader digital initiatives, signals a clear commitment to steering the country toward a future where digital transactions become the norm rather than the exception.
