The State Bank of Pakistan (SBP) has introduced new measures to encourage digital payment acceptance at fuel stations across the country by reducing transaction costs and accelerating the deployment of Raast QR-based payment facilities. Under the new arrangements, the central bank has capped the Merchant Discount Rate (MDR) for card-present transactions at fuel stations at Rs. 1 per litre for the purchase of fuel and related products. The Interchange Reimbursement Fee (IRF) has also been capped at Rs. 0.20 per litre. The pricing mechanism applies to all payment cards issued in Pakistan and is intended to make digital payment acceptance more commercially viable for fuel station operators.
The new framework is designed to address the cost concerns that have historically affected the expansion of card payment facilities at petrol pumps. Fuel stations have remained heavily dependent on cash compared with several other retail segments, with transaction charges and infrastructure costs cited among the factors limiting wider adoption of digital payments. By setting the MDR and IRF on a per-litre basis, the SBP is seeking to reduce the cost associated with accepting card payments for fuel and related purchases. The arrangements will remain applicable until January 31, 2027, after which the central bank will review the mechanism in light of market response and progress in digital payment adoption.
Alongside the revised card payment charges, SBP has directed regulated entities to actively engage with fuel station operators to ensure the availability of interoperable Raast QR-based payment acceptance. Banks, microfinance banks, electronic money institutions, payment system operators and payment service providers are expected to work with their respective fuel station merchants to enable and promote Raast QR payments. The initiative is intended to give customers another digital payment option beyond debit and credit cards, allowing fuel purchases to be completed through QR-based transactions using participating banking and digital financial applications.
The central bank’s intervention comes as Pakistan continues to expand its digital payment infrastructure and encourage greater use of electronic transactions across retail businesses. Fuel stations represent a significant segment of everyday consumer spending, and increasing digital payment acceptance in this sector could contribute to wider use of cashless payment methods. The availability of both card and Raast QR options could also provide fuel station operators with greater flexibility in accepting electronic payments while giving consumers additional ways to complete transactions without relying on cash. The policy is also expected to support broader financial inclusion and digital payment adoption by extending electronic payment facilities to a high-frequency retail environment.
The SBP will revisit the pricing arrangements on or around January 31, 2027, based on the market’s response to the new mechanism. The temporary framework therefore provides banks, payment service providers and fuel station operators with a defined period to expand digital payment acceptance and assess its impact on transaction volumes and merchant adoption. By combining lower card payment charges with a push for Raast QR acceptance, the SBP is seeking to address both the cost and infrastructure barriers associated with digital payments at petrol pumps. The initiative marks another regulatory step toward increasing the use of domestic digital payment channels across Pakistan’s retail economy.
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