The government has reaffirmed its commitment to advancing a digital and cashless economy as inflation falls to an average of 5%, signaling a positive turn in Pakistan’s economic stabilization efforts. The announcement came during the 5th Pakistan Future of Retail Business Summit and Expo held in Karachi, where Advisor to the Finance Minister, Khurram Schehzad, outlined the government’s reform agenda to promote digital inclusion, expand the tax base, and foster transparency across financial systems.
Themed “Retail in a Changing World: Building Resilience in Pakistan’s Commerce,” the summit gathered key figures from both public and private sectors to discuss strategies for building a sustainable retail ecosystem. As Chief Guest, Schehzad emphasized that the government is prioritizing structural reforms to strengthen the economy by promoting documentation, lowering business costs, and improving institutional efficiency. He described Pakistan’s consumption-driven market as an untapped growth opportunity powered by a young, spending-oriented population, urging businesses to leverage this demographic advantage.
Schehzad attributed the recent decline in inflation to measures aimed at reducing the cost of doing business, ensuring affordable and predictable energy pricing, and stimulating industrial growth. He noted that ongoing reforms in taxation, energy pricing, and inter-provincial trade are beginning to yield tangible results. Highlighting the government’s Cashless Pakistan Initiative, he shared that under the leadership of Prime Minister Shehbaz Sharif and Finance Minister Senator Muhammad Aurangzeb, efforts are being intensified to move toward a fully digital and documented economy. The initiative is expected to unlock over Rs1 trillion in additional resources by shrinking the undocumented economy by 25%.
Outlining the strategy behind this transformation, Schehzad said the initiative is built on three pillars: Conversion, Inclusion, and Adoption. These focus respectively on digitizing government payments, providing financial access to all citizens, and encouraging the widespread use of digital transactions. The government aims to increase monthly active Raast QR merchants from 500,000 to 2 million and double annual digital transactions to 15 billion by June 2026. By December 2026, all government disbursements and collections are expected to be fully digitized, supported by an anticipated rise in internet penetration from 60% to 80%.
Schehzad also highlighted progress made under the program, including the opening of 10 million bank accounts for BISP women beneficiaries, the rollout of Raast QR payments at NADRA offices and retail outlets, and the integration of Raast into utility billing systems serving 12 million consumers. Additionally, the government has eliminated right-of-way charges on internet infrastructure nationwide to lower costs and accelerate digital connectivity. He said these measures are collectively transforming Pakistan into a digitally enabled, transparent, and inclusive economy, while separating tax policy formulation from collection has improved institutional performance.
Concluding his address, Schehzad underscored that fiscal discipline, energy rationalization, and digital transformation are positioning Pakistan as a competitive regional hub for trade, retail, and investment. He urged private sector leaders to embrace digital adoption and drive export-oriented growth, emphasizing that collaboration between the government and industry is essential to achieving sustainable progress. The session was moderated by Rana Tariq Mehboob, Chairman of the Chairstore Association of Pakistan.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
