In a decisive step towards building a cashless economy, the federal government of Pakistan has approved a subsidy of Rs. 3.5 billion to boost the adoption of Raast QR payments. The measure, announced by the State Bank of Pakistan (SBP), is intended to accelerate merchant onboarding and encourage the widespread use of digital transactions across the country.
The scheme will run between September 1, 2025, and June 30, 2026, providing a direct financial incentive for Person-to-Merchant (P2M) transactions conducted through the Raast platform. Under the program, financial institutions will receive support at a rate of 0.5 percent of each transaction’s value, or Rs. 100, whichever is lower. This subsidy is part of the Prime Minister’s Cashless Economy program, which aims to drive digital financial inclusion by making it easier for small businesses and merchants to accept digital payments.
According to the SBP, the subsidy amount will be shared equally between the financial institution of the merchant (acquiring bank) and that of the customer (issuing bank). This equal distribution ensures both sides of the payment chain benefit from the program and actively promote QR-based transactions.
In addition to the subsidy, regulated entities such as banks, microfinance institutions, electronic money institutions, payment service providers, and merchant service providers may charge up to 0.25 percent of the transaction value for merchant onboarding and servicing. The SBP stated that subsidy claims will be processed quarterly, with payouts made once the Finance Division sanctions and releases the funds.
To maintain transparency and accountability, strict compliance procedures have been outlined. Regulated entities must keep complete records for verification and audit. Only transactions successfully posted in the Raast system will be considered eligible for subsidy claims. Furthermore, subsidy requests must be verified internally by financial institutions’ audit departments before submission.
Raast Payments Pakistan, the national payments operator managing the platform, will verify subsidy claims against its own transaction data. If discrepancies are found, institutions will be notified within five working days, and corrections must be submitted within another five-day window. If no response is provided, the calculated subsidy amount will be treated as final. The SBP has also authorized its inspection teams to review claims during on-site audits, ensuring compliance across the ecosystem.
The government has capped the annual subsidy allocation at Rs. 3.5 billion. Should claims exceed this ceiling, the per-transaction rate will be revised downward to maintain equitable distribution among participating institutions. This safeguard is designed to ensure broad participation while keeping the initiative within budgetary limits.
Industry experts note that the subsidy scheme marks a major push for digital payments in Pakistan, particularly for small merchants who often face barriers to adopting new financial technologies. By reducing costs and incentivizing adoption, the government aims to bring millions of small transactions into the formal digital economy. This could improve tax compliance, enhance transparency, and drive efficiency in the payment system.
The SBP confirmed that the subsidy for September 2025 transactions will be disbursed alongside claims for the quarter ending December 31, 2025. With this program, Pakistan takes another significant step toward realizing its vision of a financially inclusive, cashless economy powered by modern payment infrastructure.
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