Pakistan has set an ambitious deadline of June 2026 to fully digitise payments across all tiers of government, including federal, provincial, local bodies, and state-owned enterprises. The initiative, part of a broader push toward a cashless economy, was revealed during a session of the National Assembly Standing Committee on Finance and Revenue on Thursday.
State Bank of Pakistan (SBP) Governor Jameel Ahmad, while briefing the committee, outlined progress made so far in strengthening the digital payments ecosystem. He noted that the infrastructure currently in place supports 226 million accounts and 46 million RAAST IDs nationwide, demonstrating the scale of adoption. According to Ahmad, 88 percent of retail transactions are now digital, reflecting a significant shift in consumer behavior and institutional practices.
The SBP governor emphasized that the focus now extends beyond volume to improving transaction value, reliability, and security. To address rising concerns over fraud, he announced measures including the rollout of a bank liability framework and a two-hour cooling-off period for high-risk digital transactions. These safeguards are expected to enhance customer trust and make the system more resilient.
Highlighting global comparisons, Ahmad pointed to the successful launch of Mashreq Bank’s digital operations in Pakistan, achieved within just 12 months — a sharp contrast to the average five-year timeline for such projects elsewhere. He also confirmed that five new digital banks had been granted in-principle approval, a development expected to intensify competition and innovation in Pakistan’s financial sector.
Despite the progress, challenges remain. Ahmad acknowledged gaps in financial literacy and areas requiring regulatory improvement. He assured lawmakers that the central bank is committed to closing these gaps while ensuring the ecosystem remains inclusive, secure, and innovative.
MNA Naveed Qamar, who chaired the meeting, stressed the importance of integrating social protection systems into the digital transformation agenda. He advocated for digital wallets as a replacement for branchless banking models, arguing that they would give beneficiaries direct access to funds and multiple withdrawal channels, enhancing transparency and accessibility.
Minister of State for Finance and Revenue Bilal Azhar further briefed the committee on the prime minister’s cashless economy initiative. According to him, three dedicated subcommittees are working to accelerate adoption and innovation in digital payments, laying down a clear roadmap for Pakistan’s transition. He emphasized that digitisation of payments will not only modernize financial services but also drive financial inclusion, transparency, and long-term economic growth.
In a related development, Governor Ahmad inaugurated the JazzCash Experience Lounge, designed to showcase cutting-edge digital payment solutions. Demonstrations included biometric authentication through facial recognition and palm verification, wearable payment devices, and QR code-enabled transactions. These innovations highlight the range of possibilities in advancing customer experience while strengthening security.
As Pakistan moves toward the 2026 target, industry experts believe the digitisation of government payments could serve as a catalyst for broader adoption of fintech solutions across the country. By reducing reliance on cash, the government aims to improve efficiency, curb leakages, and enhance transparency, while also ensuring that citizens gain easier access to digital financial services.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.