Pakistan’s digital finance landscape is witnessing rapid growth as the government intensifies its push for a cashless economy. Specialized committees established under the Prime Minister’s Cashless Economy initiative have outlined ambitious national targets for the State Bank of Pakistan (SBP) to accelerate digital financial inclusion and expand the adoption of fintech solutions across the country.
The initiative focuses on setting measurable benchmarks to ensure greater reliance on digital channels for everyday transactions. Among the key goals is the expansion of active digital merchants from the current base to 2 million by the end of fiscal year 2025-26. Simultaneously, authorities are aiming to grow the number of mobile and internet banking users from 95 million today to 120 million within the next twelve months. These steps are expected to double the annual volume of digital payment transactions, pushing the figure from around 7.5 billion currently to 15 billion by 2026.
Finance ministry officials confirmed that overseas remittances are another major focus area under the plan. At present, nearly 80 percent of inward remittances are routed through formal banking channels or mobile wallets, while the remaining 20 percent are still disbursed in cash. The new target seeks to shift this entirely to bank accounts or digital wallets, eliminating cash payouts. The move is designed to enhance transparency in remittance flows, improve traceability of funds, and strengthen Pakistan’s foreign exchange reserves.
The directives from the committee, chaired by the prime minister, assign the SBP a pivotal role in enabling wider adoption of mobile and internet banking services. By driving regulatory reforms, enhancing interoperability across financial institutions, and encouraging fintech partnerships, the central bank is expected to bring digital payments to all segments of society, including underserved and rural populations.
Industry observers note that digital wallets are already experiencing a surge in usage, spurred by rising smartphone penetration, expanding 4G coverage, and a shift in consumer behavior during and after the pandemic. Wallets linked to mobile networks and banking apps have become increasingly popular for bill payments, e-commerce transactions, person-to-person transfers, and merchant payments. With the government’s renewed focus, this trend is expected to accelerate further, creating opportunities for banks, telecom operators, and fintech startups to scale their services.
The broader strategy aligns with Pakistan’s vision of fostering financial inclusion, reducing dependency on cash, and curbing the informal economy. Analysts suggest that if the outlined targets are met, Pakistan could see a transformative change in its payment infrastructure, reducing costs for businesses, improving efficiency for consumers, and creating a more transparent financial system.
The government’s targets, though ambitious, reflect global trends where digital wallets and real-time payment systems are replacing traditional cash transactions. By prioritizing digital adoption through SBP-led initiatives, Pakistan is positioning itself to join other emerging economies in advancing towards a modern, technology-driven financial ecosystem.
