KARACHI: The Karachi Metropolitan Corporation (KMC) has announced the implementation of a fully digital payment mechanism through the State Bank of Pakistan’s Raast instant payment system, becoming the first local government institution in the country to adopt the initiative as part of efforts to promote digital governance, transparency, and financial modernisation.

From fiscal year 2026-27, which begins on July 1, all vendor payments and other approved financial disbursements by the KMC will be processed via electronic fund transfers directly into beneficiaries’ bank accounts.

A statement issued by the KMC said the initiative aimed to create a transparent, efficient, and cashless municipal administration while accelerating the digital transformation of the KMC.

It added that Karachi Mayor Barrister Murtaza Wahab said that KMC is committed to embracing modern governance practices that improve service delivery, strengthen accountability, and facilitate stakeholders through technology-driven solutions.

Mayor says initiative will boost transparency and efficiency

“This is not merely a technological upgrade; it is a revolutionary step in the financial management system of local government.

“By shifting to digital payments through Raast, we are ensuring that payments reach vendors and beneficiaries directly, securely, and in real time. This initiative reflects our commitment to transparency, efficiency and public sector innovation,” the statement quoted the mayor as saying.

The mayor further emphasised that the adoption of e-transfer payments will significantly reduce manual processes, eliminate unnecessary paperwork, and minimise delays associated with traditional payment methods.

“The new system will enable vendors to receive payments directly in their designated bank accounts without the need for physical processing or manual intervention”, he said.

The statement said that the KMC has become the first local council in Pakistan to fully integrate digital payment mechanisms in line with modern public financial management practices.

It added that the system was being implemented in accordance with the payment framework adopted by the Sindh Accountant General, ensuring compliance with established financial regulations and governance standards.

The statement said the transition to electronic payments was expected to bring numerous benefits, including enhanced transparency in financial transactions, improved audit trails, reduced administrative costs, faster payment processing, and greater convenience for vendors and service providers associated with the KMC.

It will also contribute to environmental sustainability by reducing paper consumption and promoting a paperless working environment, it added.

According to the statement, Financial Adviser KMC Gulzar Abro briefed the mayor on the project’s key features, implementation strategy, and execution timeline.

Mr Abro highlighted that extensive planning and coordination have been undertaken to ensure a smooth transition to the digital payment system from the commencement of the upcoming fiscal year.

The introduction of Raast-based payments represents another milestone in KMC’s ongoing reform agenda aimed at modernising municipal governance, strengthening institutional capacity, and improving public services, the statement concluded.

Published in Dawn, June 25th, 2026