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Pakistan has taken another step toward a digital future as the federal government approved a Rs. 3.5 billion subsidy to promote cashless transactions. The move aims to increase merchant onboarding on the Raast platform and expand QR code-based payments across the country.
Incentives for Digital Transactions
The State Bank of Pakistan (SBP) confirmed that the subsidy will apply to person-to-merchant transactions processed between September 1, 2025, and June 30, 2026. Under the program, financial institutions will receive support equal to 0.5% of each transaction’s value, capped at Rs. 100.
To encourage adoption, the subsidy will be divided equally between the merchant’s financial institution and the customer’s financial institution. This means both acquiring and issuing banks benefit from the incentive.
At the same time, regulated entities will be allowed to charge merchants up to 0.25% of the transaction value for onboarding and servicing. Payments from the subsidy pool will be released quarterly. If the total disbursement risks breach the Rs. With a 3.5 billion annual ceiling, the SBP will reduce the rate to ensure funds are distributed fairly.
Compliance and Audit Measures
The SBP has directed all regulated entities, including banks, microfinance institutions, electronic money institutions, and payment service providers, to strictly follow the prescribed process. Only successful transactions posted through the Raast system will qualify for support.
Institutions must submit quarterly subsidy claims verified by their internal audit teams to Raast Payments Pakistan within five working days after the quarter ends. Raast Payments Pakistan will then cross-check these claims with its records and inform the financial institutions of any discrepancies within five days. Banks will have another five days to reconcile and resubmit their claims. If no response is received, the initially calculated amount will be treated as final.
The SBP also announced that its inspection teams will review subsidy claims during routine on-site audits. The first payout, covering September 2025, will be bundled with claims for the quarter ending December 31, 2025. However, all disbursements will depend on the Finance Division’s approval and release of funds.
Building a Cashless Future
Officials say this program falls under the Prime Minister’s Cashless Economy initiative, designed to make digital payments more appealing for both merchants and consumers. Experts believe the subsidy can accelerate digital adoption, expand financial inclusion, and create a stronger foundation for Pakistan’s IT and fintech sectors.
