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The government has tasked the State Bank of Pakistan (SBP) with preparing a detailed report on the impact of a Rs3.5 billion annual subsidy approved to boost the adoption of Raast QR-based payments.
The decision came during a recent Economic Coordination Committee (ECC) meeting, where the SBP informed that the Steering Committee on Cashless Economy had recommended targeted support for merchants through a Merchant Discount Rate (MDR) subsidy. The measure aims to make digital transactions more affordable and accelerate the transition towards a cashless economy.
Under the MDR Subsidy Scheme, banks, microfinance banks, and Electronic Money Institutions (EMIs) regulated by SBP will receive 0.5% of each Raast QR transaction value, or Rs100 per transaction, whichever is lower. In addition, these entities may charge merchants up to 0.25% of the transaction value for onboarding and servicing.
The Finance Division said the subsidy would ease cost burdens on merchants, incentivising them to adopt digital payments. It added that the scheme could digitise merchant transactions worth around Rs700 billion annually.
The ECC approved the Rs3.5 billion allocation for the current fiscal year through a supplementary grant, with future allocations to be determined annually. The SBP has been directed to notify the MDR Subsidy Scheme and submit an evaluation report by July 2026, covering merchant adoption, consumer use, and transaction volumes.
The Finance Ministry also highlighted complementary measures, including reducing import duties on payment devices and ensuring zero cost for merchants using Raast QR.
