Pakistan is on the cusp of a transformative shift toward a cashless economy, with the government introducing groundbreaking measures to integrate digital payments into everyday life. Under the leadership of Prime Minister Shehbaz Sharif, a significant decision has been made to embed QR codes on all electricity, telephone, and gas bills, enabling seamless digital payments. This initiative, coupled with the upcoming launch of the Digital Payment Index Pakistan, signals the country’s commitment to embracing fintech innovation and fostering financial inclusion.
In this comprehensive guide, we’ll explore the details of Pakistan’s digital payment revolution, the mechanisms being put in place, and how these changes will impact businesses, consumers, and the economy at large. Whether you’re a tech enthusiast, a business owner, or simply curious about Pakistan’s fintech landscape, this article will provide valuable insights into the future of payments in the country.
Why Digital Payments Matter in Pakistan
The global shift toward digital payments has reshaped economies, offering convenience, security, and efficiency. In Pakistan, where cash has long dominated transactions, the transition to a cashless economy is a game-changer. Here’s why this matters:
- Financial Inclusion: Digital payments enable millions of unbanked individuals to participate in the formal economy through mobile apps and digital wallets.
- Transparency: Cashless transactions reduce the risk of fraud and enhance accountability in financial systems.
- Economic Growth: By streamlining payments, businesses can operate more efficiently, boosting economic activity.
- Global Competitiveness: A robust digital payment ecosystem positions Pakistan as a forward-thinking player in the global fintech space.
With these benefits in mind, the government’s decision to integrate QR codes into utility bills and expand digital payment infrastructure is a strategic move to modernize the economy.
Key Initiatives Driving Pakistan’s Digital Payments Revolution
QR Codes on Utility Bills
One of the most significant steps in Pakistan’s digital transformation is the mandate to include QR codes on all utility bills. This decision, finalized in a high-level meeting chaired by Prime Minister Shehbaz Sharif, will allow consumers to pay their electricity, gas, and telephone bills using digital payment methods such as mobile apps or digital wallets.
This initiative is expected to:
- Simplify the payment process for millions of households.
- Reduce reliance on cash and in-person payment centers.
- Encourage the adoption of digital banking and mobile apps among the general population.
The mechanism for implementing QR codes will be developed by a team led by the Secretary Petroleum and Natural Resources, in collaboration with the Secretary Power, Secretary IT&T, and Chairman Capital Development Authority (CDA). The team has been tasked with finalizing the framework within a month, ensuring a swift rollout.
Launch of the Digital Payment Index Pakistan
Next month, Prime Minister Shehbaz Sharif will launch the Digital Payment Index Pakistan, a landmark initiative aimed at tracking and promoting the adoption of digital payments across the country. The Governor of the State Bank of Pakistan (SBP) and the CEO of Karandaaz are overseeing preparations for this launch, which will serve as a benchmark for measuring Pakistan’s progress toward a cashless economy.
The Digital Payment Index will:
- Monitor key metrics such as the number of active digital payment points and transactions.
- Provide insights into the growth of digital banking and fintech adoption.
- Guide policymakers in making data-driven decisions to enhance the digital payment ecosystem.
Mandatory Digital Payments at Petrol Stations and Motorways
To further promote digital payments, the government has mandated that all petrol stations across Pakistan, including those in Azad Jammu and Kashmir (AJ&K) and Gilgit-Baltistan (GB), accept payments via QR codes, Point of Sale (PoS) terminals, and soft PoS systems. This requirement will be a mandatory condition for their operating licenses.
The Secretary Petroleum and Chairman Oil and Gas Regulatory Authority (OGRA) are responsible for developing the mechanism within one month. This move ensures that even sectors traditionally reliant on cash, such as fuel retail, embrace digital transactions.
Targets Set by the State Bank of Pakistan
The State Bank of Pakistan (SBP) has outlined ambitious targets to accelerate the adoption of digital payments, as approved by the Sub-Committee on Digital Payments Innovation and Adoption. These targets include:
- Active Digital Commerce Payment Points: Increase from 0.5 million to 2 million, with a focus on expanding QR code availability.
- Active Merchants: Ensure at least 1 transaction per month per merchant to promote consistent digital payment usage.
- Digital Banking Users: Grow the number of mobile, internet app, and digital banking users from 95 million to 120 million by FY 2026.
- Digital Transactions: Double the number of digital transactions from 7.5 billion to 15 billion annually.
- Remittances: Achieve 100% digital remittances, eliminating cash payments and transitioning all remittances to bank accounts or digital wallets.
These targets reflect Pakistan’s commitment to building a robust digital payment infrastructure that supports both consumers and businesses.
Financial Incentives and Subsidies
To encourage the adoption of digital payments, the government has revised the annual subsidy allocation for cashless transactions to Rs 3.5 billion. This includes a 0.5% incentive for banks to onboard merchants onto the Raast payment system, Pakistan’s instant payment platform. Banks are permitted to charge a Merchant Discount Rate (MDR) of up to 0.25%, with any additional costs borne by service providers.
This financial support is designed to:
- Motivate banks to promote digital payment solutions.
- Reduce barriers for merchants adopting digital payment systems.
- Ensure affordability for businesses transitioning to cashless transactions.
Legal and Infrastructure Support
Legal Framework for Digital Payments
The Chairman of the Capital Development Authority (CDA), in consultation with the Law and Justice Division, is reviewing the legal framework to mandate the acceptance of QR codes, PoS terminals, and other digital payment instruments. This framework will ensure that businesses and service providers are legally obligated to offer digital payment options, creating a standardized approach across sectors.
Elimination of Right of Way (RoW) Charges
To support the expansion of digital infrastructure, the government has decided to eliminate Right of Way (RoW) charges for IT and IT-related infrastructure, starting with the CDA, National Highway Authority (NHA), and Pakistan Railways. Additionally, new housing societies will be required to waive RoW charges for IT infrastructure development, such as fiberization, as a condition for receiving approvals.
This decision will:
- Reduce costs for deploying digital infrastructure.
- Accelerate the rollout of high-speed internet and connectivity, essential for digital payments.
- Serve as a model for provincial governments to adopt similar policies.
Islamabad IT Park Inauguration
The Secretary Information Technology and Telecom has been directed to finalize arrangements for the inauguration of the Islamabad IT Park by the third week of August 2025. This state-of-the-art facility will foster innovation in Pakistan’s tech ecosystem, supporting the growth of fintech and digital payment solutions.
The Role of Raast Payment Pakistan
The Raast payment system, Pakistan’s instant payment platform, is at the heart of the country’s digital payment strategy. The Governor of the State Bank of Pakistan has been tasked with ensuring that the Board of Raast Payment Pakistan includes private-sector experts with proven expertise in digital payments. Additionally, the appointment of the CEO of Raast Payment Pakistan will be finalized by the end of September 2025, strengthening the platform’s leadership.
Raast is expected to play a pivotal role in:
- Facilitating instant, low-cost digital transactions.
- Supporting the integration of QR codes and PoS systems.
- Driving financial inclusion by connecting underserved populations to digital banking.
Challenges and Opportunities
While Pakistan’s digital payment initiatives are ambitious, they come with challenges:
- Digital Literacy: Educating consumers and merchants about digital payment systems is critical for widespread adoption.
- Infrastructure Gaps: Ensuring reliable internet connectivity across rural and urban areas is essential for seamless transactions.
- Resistance to Change: Transitioning from cash-based systems may face resistance from businesses and consumers accustomed to traditional methods.
However, these challenges also present opportunities:
- Innovation: Fintech startups can develop user-friendly solutions to bridge the digital literacy gap.
- Public-Private Partnerships: Collaboration between the government, banks, and tech companies can accelerate infrastructure development.
- Economic Empowerment: Digital payments can empower small businesses and individuals by providing access to formal financial services.
How Pakistan’s Digital Payment Revolution Impacts You
For consumers, the introduction of QR codes on utility bills means greater convenience and flexibility. You can pay bills from the comfort of your home using a smartphone, eliminating the need to visit payment centers. For businesses, adopting digital payment systems opens new opportunities to reach tech-savvy customers and streamline operations. For policymakers, these initiatives provide a framework to monitor and enhance the digital economy.
To stay ahead in this rapidly evolving landscape, consider:
- Downloading a digital wallet or banking app to start making cashless payments.
- Exploring Raast for instant, low-cost transactions.
- Staying informed about government initiatives like the Digital Payment Index Pakistan.
Conclusion
Pakistan’s push toward a cashless economy is a bold and necessary step in the digital age. By integrating QR codes into utility bills, launching the Digital Payment Index Pakistan, and setting ambitious targets for digital transactions, the government is laying the foundation for a modern, inclusive financial ecosystem. These initiatives, supported by the State Bank of Pakistan and platforms like Raast, position Pakistan as a leader in fintech innovation in the region.
As these changes unfold, both consumers and businesses stand to benefit from increased convenience, transparency, and economic opportunities. Stay tuned for more updates on Pakistan’s digital transformation, and join the movement toward a cashless future.
