The Finance Division has prepared a draft legal package proposing amendments to the Payment Systems and Electronic Fund Transfers (PS&EFT) Act, 2007, aimed at mandating the availability of at least one digital mode of payment across Pakistan. The proposed changes include compulsory acceptance of digital payments such as QR codes and the delegation of enforcement powers to local governments, marking a significant step toward accelerating the country’s transition to a cashless economy.
According to official documents, the draft amendment has been forwarded by the Finance Secretary to the Prime Minister’s Office for in-principle approval. Once approved, the proposal will be circulated to the federal cabinet and the Cabinet Committee for Disposal of Legislative Cases. As part of the government’s strategy to strengthen digital adoption at the retail and grassroots level, Raast QR code-based payments are expected to play a central role in the new framework.
Sources indicate that the initiative aligns with the broader push toward a fully digital public finance ecosystem. A key institutional development supporting this transition is the establishment of the Government Payments and Receipts Transformation Unit under the Ministry of Finance. The newly created unit will serve as the central coordinating body for integrating government entities with Raast, Pakistan’s instant payment system, and for driving end-to-end digitisation of public sector payments and collections.
The unit will oversee government-to-person and person-to-government payment flows, ensuring standardisation, efficiency, and transparency across departments. Its responsibilities include developing the government-facing Raast Connect platform, providing project management support, assisting departments in onboarding with payment aggregators, facilitating business process re-engineering, and securing technical expertise through the National Information Technology Board and provincial IT boards when required.
Under the Cashless Pakistan initiative, the government has set ambitious digital adoption targets to be achieved by December 2026. These include increasing the number of active digital merchants to 2 million, expanding digital banking users to 120 million, and scaling annual digital transactions to 15 billion. The plan also envisions 100 percent digitisation of non-tax person-to-government payments and more than 80 percent of remittances being credited directly into bank accounts.
Progress indicators suggest momentum is building. As of November 2025, Pakistan recorded 3.3 billion digital transactions, with nearly 89 percent of selected government collection streams already digitised. Financial inclusion has risen to 67 percent, with a roadmap in place to reach 70 percent by 2026, alongside continued efforts to narrow the gender gap in access to financial services.
Several federal entities, including the Power Division, Petroleum Division, Pakistan Railways, NADRA, and Pakistan Post Office, are at various stages of digital transformation, with full Raast-based integration planned by 2026. On the disbursement side, organisations such as the Benazir Income Support Programme, Pakistan Military Accounts Department, and the Central Directorate of National Savings have initiated large-scale transitions, with full digitisation timelines set between March and June 2026.
Provincial governments have also begun aligning with the digital payments agenda. High-impact departments across Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, and Gilgit-Baltistan are being brought onto digital platforms for salaries, pensions, vendor payments, and fees. Islamabad Capital Territory has already introduced bylaws mandating digital payment solutions at retail outlets, while most provinces have issued notifications requiring acceptance of digital payments as they review or draft dedicated Digital Payment Acts.
Recent achievements include the completion of a fully digital e-Stamp solution for ICT, integrated with SBP’s 1-Link system, eliminating the need for physical documentation. Digital infrastructure is also expanding, with internet connectivity provided to schools, health units, and public spaces, supporting the government’s broader push toward a digitally enabled and cashless economy.
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