Pakistan is set to digitise all payments made by federal, provincial, and local governments, along with state-owned enterprises, by June 2026, officials revealed during a parliamentary committee session on Thursday. The initiative is part of a broader effort to strengthen the country’s cashless economy and expand the reach of digital financial services across the nation. State Bank of Pakistan (SBP) Governor Jameel Ahmad briefed the National Assembly Standing Committee on Finance and Revenue on the progress of Pakistan’s digital payments ecosystem, highlighting the country’s ongoing transition toward fully electronic transactions.
According to SBP, 88 percent of retail transactions in Pakistan are now conducted digitally, supported by a robust infrastructure that includes 226 million accounts and 46 million RAAST IDs. Governor Ahmad detailed efforts to enhance the value and security of digital payments, including the introduction of a bank liability framework and a two-hour transaction cooling-off period designed to prevent fraud. He also highlighted the swift launch of Mashreq Bank’s digital operations in Pakistan, which took just 12 months—a significant acceleration compared to the typical five-year rollout in other markets. Additionally, five new digital banks have received in-principle approval to operate in the country, reflecting growing confidence in Pakistan’s fintech sector.
Despite these advancements, Governor Ahmad acknowledged existing challenges, including low financial literacy levels and regulatory gaps. He assured the committee that SBP is actively working to address these issues while fostering a secure, inclusive, and innovative digital payments ecosystem. MNA Naveed Qamar, chairing the session, stressed the importance of expanding digital payments and social protection systems, particularly through digital wallets. These digital tools are intended to replace traditional branchless banking, providing beneficiaries with direct access to funds and multiple withdrawal options.
Minister of State for Finance and Revenue Bilal Azhar also briefed the committee on the prime minister’s cashless initiative, which is supported by three subcommittees focusing on digital payments innovation and adoption. The committee discussed the roadmap for implementing this initiative, emphasizing the role of digital financial services in promoting transparency, financial inclusion, and economic growth. In a related development, Governor Ahmad inaugurated the JazzCash Experience Lounge, a facility showcasing digital payment innovations including facial recognition payments, palm verification, wearable devices, and QR code-based transactions, further highlighting Pakistan’s push toward a comprehensive digital finance ecosystem.
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