The federal government has formed a seven-member committee to design a detailed plan for introducing digital payment methods at petrol stations across Pakistan. This committee is led by Sharjeel Murtaza, Chief Digital Officer at Karandaaz Pakistan, and includes senior officials from the Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority, Oil Companies Advisory Council, and the State Bank of Pakistan. The initiative is part of the government’s wider effort to reduce cash use and boost digital transactions in key sectors.
The committee will finalize its proposal and submit it to the FBR and Ministry of Finance ahead of the upcoming federal budget. The plan requires petrol stations to offer multiple digital payment options, such as QR codes, debit and credit cards, and mobile wallets, ensuring convenience for consumers who choose digital payments. Fuel prices under this system will follow government notifications for digital transactions.
However, consumers opting to pay in cash will face an additional charge of Rs2-3 per liter, encouraging a shift toward digital payments. This additional fee is designed to reduce cash handling costs and improve tax compliance. The government has already implemented similar measures, like higher toll fees for cash payments on motorways and lower GST rates for digital payments at restaurants.
Officials believe the new digital payment system will enhance transparency in petroleum sales and help track fuel supplies more accurately. The FBR chairman indicated that the extra revenue collected from cash payment surcharges might be refunded to consumers through periodic fuel price adjustments, balancing fairness with enforcement.
Furthermore, the government plans to impose an 18% GST on digital payments related to fuel imports and manufacturing, plus an additional 2% GST on cash transactions. This step aims to discourage cash dealings further and align taxation with digital payment trends, signaling Pakistan’s commitment to modernizing its economy and improving revenue collection.