PM orders faster shift to digital payments as Pakistan advances cashless economy

Prime Minister Shehbaz Sharif on Tuesday called for an accelerated transition to a cashless economy, directing authorities to broaden the use of digital payment systems and expand awareness campaigns to encourage businesses and consumers to embrace electronic transactions.

Presiding over a meeting on the country's digital payments strategy, the prime minister said moving away from cash-based transactions would promote greater transparency, improve economic documentation and contribute to sustainable long-term growth.

Officials informed the meeting that Pakistan's digital payments ecosystem recorded notable gains over the past year. Mobile banking application users increased from 95 million to 137 million, while the number of merchants accepting digital payments surged by 300%.

The government also reported that 92% of overseas remittances received during the past year were processed through digital channels, prompting the prime minister to direct that all future remittance inflows be routed digitally.

The meeting was further informed that the Benazir Income Support Programme (BISP) has substantially expanded its digital payment infrastructure, with 10 million beneficiaries now receiving financial assistance through digital wallets. Sharif described the system as more transparent, efficient and convenient for recipients.

As part of the next phase of the initiative, the prime minister instructed relevant authorities to intensify the rollout of QR code-based payment solutions among merchants to further accelerate the adoption of digital transactions across the country.

Participants were also told that an independent third-party validation of the cashless economy initiative is currently in progress. The assessment, together with its recommendations, is scheduled to be presented to the government in November.

Sharif also commended the economic team for the progress achieved over the past year in expanding Pakistan's digital payments landscape and advancing the country's transition towards a cashless economy.