Pakistan has agreed to deepen technical coordination with global payments firm Visa to accelerate the digitization of government payments and strengthen the country’s digital payments infrastructure, as part of broader economic and financial sector reforms. The understanding was reached during a meeting in Islamabad on January 8, 2026, between Federal Minister for Finance Senator Muhammad Aurangzeb and a Visa delegation led by Tareq Muhmood, Regional President for Central Europe, Middle East and Africa. According to a press release, discussions focused on leveraging recent macroeconomic stabilization to promote cashless transactions and expand financial inclusion across the country, particularly as Pakistan seeks to modernize public finance management and reduce reliance on cash based systems.
The engagement comes at a time when the government is pursuing wide ranging reforms aimed at widening the tax base, improving transparency in public finances and strengthening economic documentation. Senator Aurangzeb linked the push for digital payments with progress under the IMF supported program, highlighting reforms across taxation, the energy sector, state owned enterprises, public debt management and privatization, including measures to speed up asset sales. He said the government is prioritizing end to end digitization of public sector receipts and expenditures to improve efficiency, accountability and service delivery. Implementation of these initiatives, he added, is being coordinated at the highest level to ensure alignment across ministries, regulators and public sector entities.
Discussions during the meeting covered key aspects of payment infrastructure and acceptance, with particular emphasis on expanding digital payments into Tier 2 and Tier 3 cities where cash usage remains high. Both sides reviewed opportunities to support small and nano businesses through low cost acceptance solutions such as QR codes and tap to phone technologies, which allow merchants to accept digital payments without expensive hardware. Fraud prevention, cash displacement strategies and competition across payment channels were also discussed, reflecting the regulators’ focus on managing operational and financial risks while continuing to encourage innovation in the payments ecosystem. Visa shared feedback from banks and fintech companies operating in Pakistan, noting growing interest in digital payments following signs of macroeconomic stabilization and improved business sentiment.
Emerging areas including remittances, e-commerce and tourism related spending by overseas Pakistanis were also reviewed as part of the broader discussion on expanding digital payment use cases. The meeting also touched on regulated applications of new technologies such as blockchain and digital assets, particularly in areas like remittances, public debt instruments and government payments, where transparency and traceability are critical. Pakistan is already pursuing reforms to its payment rails through State Bank of Pakistan and plans to operationalize Pakistan Digital Authority as part of a wider digital economy agenda. Greater use of digital payments is seen by policymakers as supportive of financial inclusion, improved documentation of the economy and stronger revenue collection, with positive spillovers for growth and investment. Both sides agreed to continue technical engagement and structured knowledge sharing with regulators and stakeholders to support the evolution of Pakistan’s digital payments ecosystem as reforms advance. The Visa delegation included senior regional and Pakistan based executives, underlining the company’s continued interest in supporting Pakistan’s transition toward a more digital and inclusive financial system.
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