The State Bank of Pakistan (SBP) is taking significant steps to simplify the process of opening merchant accounts, a move aimed at promoting digital payments across the country. In a recent meeting with the Senate Standing Committee on Finance, Deputy Governor Dr. Inayat Hussain announced that the SBP is reducing the complexity of the account-opening forms for merchants. The forms, which previously spanned 16 pages, will now be condensed into a much simpler 2-3 page format. This change is part of the SBP’s broader strategy to encourage the adoption of digital payment systems among merchants, making the process more accessible and efficient.
The simplification of merchant account forms is a key initiative in the SBP’s ongoing efforts to boost the digital payments ecosystem in Pakistan. Dr. Hussain emphasized that this move would significantly ease the onboarding process for merchants, helping them transition to digital platforms with greater ease. By reducing bureaucratic hurdles, the SBP aims to make it more convenient for businesses to embrace digital payment solutions, such as QR code systems, thereby increasing the overall adoption rate.
In line with these efforts, the Senate Standing Committee on Finance has set a deadline of June 30, 2025, for the implementation of a fully digital payment system in Pakistan. This ambitious target reflects the government’s commitment to modernizing the financial infrastructure and promoting greater financial inclusion.
SBP is collaborating with key organizations like Karandaaz and the Pakistan Banks Association to incentivize both merchants and consumers to adopt digital payment methods. These collaborations are intended to create a more conducive environment for digital transactions, which can help drive economic growth and enhance financial transparency.
Dr. Hussain also highlighted that last year, Pakistan paid $138 million in fees for using bank cards, underscoring the growing reliance on digital transactions. The Finance Committee has directed the Ministry of Finance and SBP to submit a progress report on these initiatives within six months, ensuring that the country stays on track with its digital payment goals.
In addition to the digital payment initiatives, the committee also approved an important amendment to the State-Owned Enterprises (SOE) Act, 2024. This amendment clarifies the governance guidelines for SOEs, focusing specifically on public sector companies where the federal government holds more than 51 percent of the shares. This clarification is expected to enhance the transparency and efficiency of state-owned enterprises, supporting broader governance reforms across the country.
As Pakistan moves towards a more digitally inclusive economy, these efforts by the SBP to simplify merchant account registration and promote digital payments are expected to play a pivotal role in transforming the financial landscape. By making digital payment systems more accessible to businesses, the SBP is paving the way for a more robust, efficient, and inclusive financial ecosystem.
