Pakistan’s finance ministry and global payments firm Visa have agreed to expand technical coordination aimed at digitizing government payments and strengthening the country’s digital payments infrastructure. The initiative focuses on leveraging macroeconomic stabilization to accelerate cashless transactions and enhance financial inclusion.
The agreement emerged during a meeting in Islamabad between Finance Minister Senator Muhammad Aurangzeb and a Visa delegation led by Tareq Muhmood, Regional President for Central Europe, the Middle East, and Africa. The discussions underline Pakistan’s efforts to broaden its tax base, improve transparency in public finances, and reduce reliance on cash as part of ongoing economic reforms.
Finance Minister Aurangzeb linked the expansion of digital payments to progress under the IMF-supported program, highlighting reforms across taxation, energy, state-owned enterprises, public debt management, and privatization, including measures to expedite asset sales. He emphasized that the government is prioritizing end-to-end digitization of receipts and expenditures to improve efficiency and service delivery, with implementation being coordinated at the highest level.
Key areas of discussion included payment infrastructure and acceptance, expansion into Tier-2 and Tier-3 cities, support for small and nano businesses, and digital payment tools such as QR codes and tap-to-phone technology. Fraud prevention, cash displacement, and competition across payment channels were also addressed, reflecting regulators’ commitment to managing risk while fostering innovation.
Visa shared feedback from banks and fintechs operating in Pakistan, noting growing interest in digital payments following macroeconomic stabilization. The meeting reviewed emerging areas such as remittances, e-commerce, and tourism-related spending by overseas Pakistanis. Discussions also included regulated use cases for new technologies, including blockchain and digital assets, particularly in remittances, public debt management, and government payments.
Pakistan is pursuing reforms to its payment rails through the State Bank of Pakistan and plans to operationalize the Pakistan Digital Authority as part of a broader digital economy agenda. The greater adoption of digital payments is expected to support financial inclusion, improve documentation of the economy, and create potential spillovers for revenue collection and economic growth.
Both sides agreed to continue technical engagement and knowledge-sharing with regulators to further develop Pakistan’s digital payments ecosystem as reforms progress. The Visa delegation included senior regional and Pakistan-based executives.
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