PM highlights criticality of cashless economy

Pakistan is accelerating its push toward a cashless economy as digital payments continue to expand rapidly across the country. On Tuesday, Prime Minister Shehbaz Sharif instructed authorities to fast-track the transition, describing digital transformation as a key driver of sustainable economic growth, transparency, and financial inclusion.

 

While chairing a high-level meeting on promoting digital payments and a cashless economy, the prime minister praised the economic team's progress over the past year in increasing the adoption of digital financial services. He highlighted the remarkable 300% rise in merchants using QR code payment systems and directed officials to intensify awareness campaigns so that more businesses embrace QR-based transactions.

 

The prime minister emphasized that reducing reliance on cash would strengthen economic transparency and support long-term development. He also instructed the relevant authorities to digitize all remittances sent by overseas Pakistanis, aiming to improve efficiency, documentation, and transparency in foreign inflows.

 

Officials informed the meeting that the number of merchants accepting digital payments had climbed by 300%, reaching more than 2 million between June 2025 and June 2026. During the same period, mobile banking users increased significantly from 95 million to 137 million, reflecting growing public confidence in digital financial services.

 

Prime Minister Shehbaz welcomed these achievements and urged banks and financial institutions to take a more active role in expanding access to digital banking and payment solutions.

 

According to the briefing, Pakistan processed approximately 11.9 billion digital transactions between July 2025 and June 2026, demonstrating the rapid adoption of electronic payment channels nationwide. Officials also reported that 92% of overseas remittances were received through digital channels during the previous year.

 

The meeting was further informed that nearly 10 million beneficiaries of the Benazir Income Support Programme (BISP) are now receiving payments through digital wallets. The prime minister described this initiative as a faster, more transparent, and convenient method of delivering financial assistance to deserving citizens.

 

Officials also highlighted major progress in payment digitization at the National Database and Registration Authority (NADRA), where 99% of payments are now made digitally. As a result, cash transactions have declined dramatically from 71% to just 1%.

 

The review also covered ongoing efforts to expand the use of the RAAST instant payment system and other digital payment platforms. The Pakistan Banking Association (PBA) has established targets for member banks to further increase digital payment adoption, particularly through greater utilization of RAAST.

 

The meeting was informed that an independent third-party assessment of Pakistan's transition toward a cashless economy is currently underway, with the final report and recommendations expected in November 2026.

 

Concluding the meeting, the prime minister instructed all relevant institutions to continue working together to expand digital financial inclusion and ensure that citizens, businesses, and government programmes benefit from secure, efficient, and transparent digital payment systems.

 

The meeting was attended by Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, IT Minister Shaza Fatima, Petroleum Minister Ali Pervaiz Malik, Economic Affairs Minister Ahad Cheema, Minister of State for Finance Bilal Azhar Kayani, SBP Governor Jameel Ahmad, the Chairman of NADRA, and senior officials from relevant government institutions.