In a move that could reshape Pakistan’s financial landscape, the federal government has announced plans to digitize all payments made by government institutions — from the federal and provincial levels to local bodies and state-owned enterprises — by June 2026. The initiative is a central part of the country’s broader push towards a cashless economy.
Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, briefed the National Assembly Standing Committee on Finance and Revenue about the progress made so far in building a strong digital payments ecosystem. He highlighted that nearly 88% of retail transactions are now being conducted digitally, a figure that reflects both the growth of mobile banking and the expanding role of fintech services in everyday life.
Pakistan’s infrastructure for digital transactions has expanded rapidly, with 226 million bank accounts and 46 million RAAST IDs registered across the country. To further strengthen trust and security, the SBP has introduced new measures, including a bank liability framework and a two-hour cooling-off period for high-value transfers to reduce the risk of fraud.
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Governor Ahmad also pointed to encouraging developments in the sector. For instance, Mashreq Bank’s digital operations were launched in Pakistan within just 12 months — a process that typically takes up to five years in other markets. Additionally, five new digital banks have been given initial approval to start operations, reflecting growing investor confidence in Pakistan’s fintech sector.
At the same time, challenges remain. Ahmad admitted that low financial literacy and certain regulatory gaps continue to slow adoption. However, he assured lawmakers that the SBP is committed to building a secure and inclusive system that ensures benefits reach ordinary citizens.
Committee chair MNA Naveed Qamar underscored the importance of linking digital payments with social protection programs, suggesting that digital wallets could gradually substitute branchless banking, giving the masses easier, direct access to funds.
The session also touched on the prime minister’s wider “cashless initiative,” backed by three dedicated subcommittees to drive innovation and adoption.
Separately, Ahmad inaugurated the JazzCash Experience Lounge, where visitors were introduced to futuristic payment tools such as facial recognition payments, palm verification, wearables, and QR-based transactions — offering a glimpse into the digital future Pakistan is racing towards.