All govt payments to be digitized by June 2026, says SBP Governor

Karachi: The parliamentary committee was informed that Pakistan plans to digitize all payments of federal, provincial, and local governments as well as government entities by June 2026, a move that is part of a broader policy towards a cashless economy.

According to a news report, State Bank of Pakistan (SBP) Governor Jamil Ahmed, while briefing the National Assembly Standing Committee on Finance and Revenue, highlighted the development of the digital payments system in the country. He spoke about the current structure, achievements, and emerging trends, saying that 88 percent of retail transactions are now being carried out digitally.

He stated that Pakistan’s digital infrastructure is currently facilitating 226 million accounts and 46 million Raast IDs, and further steps are being taken to increase the value of transactions and improve security, including a bank liability framework and a 2-hour ‘cooling-off period’ to reduce fraud.

Jamil Ahmed added that Mashreq Bank’s digital operations have been successfully launched in Pakistan, and the project was completed in just 12 months, while it usually takes 5 years in other countries. He also stated that five new digital banks have been given preliminary approval to start operations.

The Governor State Bank acknowledged that despite the progress, low levels of financial literacy and regulatory loopholes remain challenges; however, he assured the committee that the State Bank is committed to addressing these issues and creating a secure, inclusive, and modern digital payments system.

While chairing the meeting, Member of National Assembly Naveed Qamar stressed the need to expand the digital payments and social security system, especially through digital wallets, which can replace branchless banking and provide beneficiaries with direct access to funds and the facility to withdraw funds from various sources.

Minister of State for Finance and Revenue Bilal Azhar briefed the committee on the Prime Minister’s cashless initiative, for which three sub-committees have been set up to oversee innovation and adoption of digital payments.

The meeting deliberated on the roadmap of the project and highlighted the role of digital financial services in promoting financial inclusion, transparency, and economic growth.

In addition, Jamil Ahmed inaugurated the Jazz Cash Experience Lounge, which offers cutting-edge facilities in digital payments, including payments through facial recognition, palm authentication, wearable devices, and QR code-based transactions.