Pakistan plans to digitize all government payments at federal, provincial, local, and institutional levels by June 2026, marking a major step toward creating a cashless economy. This update was shared with a parliamentary committee during a briefing on the country’s expanding digital payments ecosystem. The move reflects the government’s broader policy to modernize financial systems, improve efficiency, and ensure greater transparency in public transactions while aligning with global digital transformation trends.
State Bank of Pakistan Governor Jameel Ahmad highlighted the remarkable growth of the digital payments network while briefing the National Assembly’s Finance and Revenue Standing Committee. He revealed that 88 percent of retail transactions in Pakistan are now processed digitally, showcasing rapid adoption of electronic payments. Furthermore, Pakistan’s digital infrastructure currently supports 226 million accounts and 46 million Raast IDs, which facilitate secure, instant transfers across the country.
Moreover, Ahmad emphasized that new measures are being introduced to enhance security and transaction value, including a bank liability framework and a two-hour “cooling-off period” to reduce fraud risks. He proudly noted the swift launch of Mashreq Bank’s digital operations in Pakistan, which were completed within only 12 months—far quicker than the five years typically required in other countries. Additionally, five new digital banks have already received initial approvals to start their operations soon.
Despite the progress, Ahmad acknowledged ongoing challenges such as low financial literacy and regulatory gaps that may hinder full digital adoption. However, he assured the committee of the State Bank’s commitment to addressing these issues and building a secure, inclusive, and modern digital payment system. He underlined that stronger regulations and education campaigns will be vital for maintaining trust and encouraging more citizens to shift toward digital banking solutions.
Committee Chairman and National Assembly member Naveed Qamar stressed the need to expand digital payments and social protection programs through digital wallets. He noted that digital wallets could replace branchless banking, giving beneficiaries direct access to funds and withdrawal options from multiple sources. Additionally, Minister of State for Finance Bilal Azhar briefed the committee on the Prime Minister’s cashless initiative, which is being monitored by three subcommittees focused on innovation and adoption of digital payments.
In a related development, Jameel Ahmad inaugurated JazzCash Experience Lounge, showcasing advanced digital payment facilities. The lounge offers cutting-edge features such as facial recognition payments, palm verification, wearable devices, and QR code-based transactions, underscoring Pakistan’s ambition to accelerate financial inclusion, transparency, and economic growth through digital financial services.