The Ministry of Finance (MoF) is working on developing a cashless payment system for Government to Person (G2P) and Person to Government (P2G) transactions to improve transparency and efficiency within State Owned Entities (SOEs), according to a news report.Â
A sub-committee led by Secretary Finance, Imdad Ullah Bosal, has initiated discussions with relevant ministries, including the Ministry of Foreign Affairs, Ministry of Defence, and Ministry of Defence Production. Chief Secretaries, Finance Secretaries of four provinces, AJK, Gilgit-Baltistan, and the State Bank of Pakistan (SBP) are also involved in the consultations.
Advisor to the Prime Minister, Dr. Syed Tauqeer Hussain Shah, informed ministries about the Prime Minister’s establishment of the Steering Committee on Cashless Pakistan on June 22, 2025.
A finance-led sub-committee is working on plans to digitise government payments, including G2P and P2G transactions, with the aim of boosting efficiency and transparency. The committee seeks a comprehensive plan covering all relevant transactions, such as salary, pensions, vendor payments, and subsidies.
Dr. Shah asked all ministries to submit detailed information on SOEs and autonomous bodies involved in these transactions, including the nature, frequency, and current payment mechanisms.
Additionally, the SBP has set revised targets for digital payment adoption, including increasing active digital commerce points and expanding mobile and internet banking users. The goal is to enhance digital transactions by 100%, raising the volume from 7.5 billion to 15 billion.
The government has also approved a subsidy of Rs 3.5 billion to support cashless transactions, with banks allowed to charge up to 0.25% for merchant onboarding. The committee will review timelines for implementing the digital payment strategy at its next meeting.
To ensure private sector engagement, the SBP Governor has been tasked with appointing renowned experts in digital payments to the Raast Payment Pakistan board.
