ISLAMABAD: A parliamentary committee was informed on Thursday that Pakistan plans to digitise all payments by the federal, provincial, and local governments, as well as state-owned enterprises, by June 2026. This initiative is part of a broader move towards a cashless economy.

State Bank of Pakistan (SBP) Governor Jameel Ahmad briefed the National Assembly Standing Committee on Finance and Revenue, outlining the country’s progress in developing a digital payments ecosystem. He discussed the current infrastructure, achievements, and emerging trends, noting that 88 per cent of retail transactions are now conducted digitally.

He added that Pakistan’s digital infrastructure supports 226 million accounts and 46m RAAST IDs across the country. Efforts are ongoing to increase the value of these transactions and improve security, including the introduction of a bank liability framework and a two-hour transaction cooling-off period to reduce fraud.

Mr Ahmad highlighted the successful launch of Mashreq Bank’s digital operations in Pakistan, which took just 12 months — a rapid timeline compared to the typical five-year rollout elsewhere. He also mentioned that five new digital banks had been granted in-principle approval to operate in the country.

SBP chief says push for cashless economy gains momentum with new initiatives

Despite the progress, the SBP governor acknowledged challenges such as low levels of financial literacy and regulatory gaps. However, he reassured the committee that the SBP was committed to addressing these issues and building a secure, inclusive, and innovative digital payments ecosystem.

MNA Naveed Qamar, chairing the meeting, emphasised the need to expand digital payments and social protection systems, particularly through digital wallets. This would replace branchless banking, providing beneficiaries with direct access to funds and multiple withdrawal options.

Minister of State for Finance and Revenue Bilal Azhar briefed the committee on the prime minister’s cashless initiative, which is supported by three subcommittees focused on digital payments innovation and adoption. The committee discussed the roadmap for the initiative, underlining the role of digital financial services in enhancing financial inclusion, transparency, and economic growth.

Separately, Mr Ahmad inaugurated the JazzCash Experience Lounge, designed to showcase various digital payment innovations, including facial recognition payments, palm verification, wearables, and QR code-based transactions.

Published in Dawn, September 19th, 2025