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Pakistan is set to make digital payments mandatory for retailers in key regions by September, accelerating its cashless economy ambitions. An official document reviewed by TechJuice reveals sweeping new directives aimed at rapidly transforming how transactions take place across the country.
In a high-level Steering Committee meeting on the cashless economy convened by the Prime Minister’s Office on July 3, 2025 (and formally issued through directives on July 8) the government laid out an aggressive roadmap to strengthen the cashless economy Pakistan vision.
A key highlight of the plan is that the Secretary of the Ministry of IT & Telecom and the Commissioner ICT have been instructed to make digital payment acceptance mandatory for all retail merchants in Islamabad Capital Territory (ICT), Azad Jammu & Kashmir (AJK), and Gilgit-Baltistan (GB). Retailers will be required to accept payments via QR codes, POS terminals, soft POS, or similar devices, with local district administrations enforcing this directive by September 2025 as a pilot model for nationwide expansion.
SBP to Raise Digital Targets by 400% as Banks Align with Cashless Push
The move comes alongside a string of other measures designed to deepen Pakistan’s shift toward a digital payments landscape. The State Bank of Pakistan (SBP) has been tasked with revising its digital transaction targets upward by at least 400%, while also ensuring all remittances are processed through digital channels. Commercial banks are expected to propose operational models to align with this bold shift.
During the same meeting, payment rails were formally declared as “public goods,” underlining their critical role in supporting a robust cashless economy Pakistan strategy. To streamline progress, the Governor SBP and Minister of State for Finance/Railways will now hold pre-review sessions ahead of each Steering Committee meeting. Furthermore, the Governor SBP has been directed to personally attend all committee meetings to ensure high-level coordination.
The document also details plans to dismantle regulatory bottlenecks, with the Law Minister and Attorney General assigned to review and streamline the legal framework governing Right of Way in provinces and territories. Meanwhile, SBP will launch a simplified framework for onboarding small merchants by July 2025 to broaden the acceptance of digital payments across retail sectors.
To build public trust and adoption, the SBP and Karandaaz will kick off a national awareness campaign by August 2025, educating citizens on digital transactions, consumer facilitation, and fraud prevention. A Digital Payments Index is also set to be unveiled that month to track progress.
Other directives include rolling out phased limits on cash-on-delivery for e-commerce, reviewing proposals to cut import duties and taxes on payment devices, and considering subsidies — capped at 0.5% or Rs200 per transaction — to encourage merchant adoption, amounting to an estimated Rs2.5 billion annually.
On the ground in Islamabad, the City Islamabad App and the “Cashless Islamabad” initiative — both incorporating e-Stamping features — are scheduled to be launched by Prime Minister Shehbaz Sharif by July 31, 2025. Public Wi-Fi hotspots and digital e-library facilities across the capital are also planned for completion by December.
In a move to bolster global investor and public confidence, all actions under the cashless economy plan will undergo third-party validation by a leading international firm, ensuring transparency and robust oversight as Pakistan steers decisively toward a digital-first financial system.
