Islamabad will become the first fully cashless city in Pakistan, with all businesses and shopkeepers required to connect to digital payment systems by December 31, 2026, the government has announced.
State Minister for Interior Talal Chaudhry said that from November 30, no department of the Islamabad Capital Territory (ICT) or the Capital Development Authority (CDA) will accept cash payments.
Chaudhry made the announcement while chairing a meeting on the Cashless Islamabad project, attended by CDA Chairman Suhail Ashraf, banking sector representatives and other senior officials.
He said the project is being implemented quickly on the special instructions of the prime minister and the federal interior minister. He noted that Interior Minister Mohsin Naqvi had pledged to the prime minister that Islamabad would become the first cashless city and the first cashless capital in the world.
According to Chaudhry, a cashless system will improve financial transparency, tax monitoring and the transaction process. He said 26,000 merchants in Islamabad are already connected to digital payment systems, and the facility will be extended to every level, from street vendors to large commercial centres.
He added that consultation with all relevant institutions and stakeholders is important for the success of the project. Banking sector representatives welcomed the initiative and assured full cooperation. Chaudhry said all concerned institutions will work together to make Islamabad a modern digital city.
The move comes as the digital payments system continues to change how businesses and consumers carry out transactions. The fintech and digital payments sector is growing rapidly, creating new investment opportunities in the country.
In fiscal year 2025, retail transactions totalled 9.1 billion, with a combined value of Rs612 trillion. In fiscal year 2026, the number of transactions rose to 14.3 billion, and their combined value reached Rs673 trillion.
Mobile banking users increased to 24.1 million in fiscal year 2025, up from 10.9 million in fiscal year 2021. This rapid expansion of the digital economy is offering profitable opportunities to domestic and foreign fintech investors in Pakistan.
