The federal government has set December 31, 2026, as the deadline to make Islamabad Pakistan’s first fully cashless city, with authorities accelerating efforts to shift businesses and government departments towards digital payments.
The decision was taken during a meeting on the Cashless Capital project chaired by State Minister for Interior Tallal Chaudhry in Islamabad on Friday, according to an official statement issued by the Ministry of Interior.
Chaudhry said the project was being implemented rapidly on the special instructions of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi. He added that consultation with relevant stakeholders was essential to ensure its successful implementation.
The state minister announced that no cash payments would be accepted in any department of the Islamabad Capital Territory (ICT) administration and the Capital Development Authority (CDA) after November 30, 2026.
The government has also set December 31 as the target to bring all merchants in Islamabad into the digital payments system. So far, approximately 26,000 merchants have been connected to the cashless network.
According to Chaudhry, digital payment facilities will be introduced across all business segments, ranging from street vendors to major commercial centres.
He said the initiative would improve financial transparency, tax monitoring and the overall transaction system while supporting Islamabad’s transformation into a modern digital city.
CDA Chairman Sohail Ashraf, banking sector representatives and senior government officials also attended the meeting. Banking representatives welcomed the initiative and assured the government of their cooperation.
The move follows Prime Minister Shehbaz Sharif’s broader push to expand digital payments across Pakistan. Last week, he directed relevant authorities to prepare a clear roadmap with time-bound targets for establishing a fully digital payment system nationwide.
The prime minister has also been informed that digitisation of payments across federal and provincial government institutions is progressing, with most institutions expected to shift to fully digital payments by December 2026.
