Govt Plans Legal Reforms to Enforce Digital Payment Solutions in Pakistan

The government is preparing a major legal package to support its vision of a cashless economy. It plans to amend several existing laws to make digital payment solutions mandatory at all business and retail outlets in Pakistan.

According to sources from the Ministry of Finance, the new draft will update the Payment Systems and Electronic Fund Transfers Act, 2007. Once approved, every business will be required to offer at least one digital payment option, such as a QR code payment system. Local and provincial governments will also have the power to enforce these rules and ensure compliance.

Govt Plans Legal Reforms to Enforce Digital Payment Solutions in Pakistan

The Capital Development Authority (CDA) and Islamabad Capital Territory (ICT) are already revising their bylaws to make digital payment options compulsory at all retail and business points in Islamabad. Provincial governments will take similar steps by amending their local laws or introducing new Digital Payment Acts. These laws will make it mandatory for retailers and service providers to accept digital payments.

Until these laws are passed, local authorities have been told to issue temporary notifications directing businesses to install and use digital payment systems in their outlets.

Some public utilities have already started implementing these changes. The Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) now print Raast QR codes on consumer bills. Together, they serve over 10.7 million customers and collect nearly Rs385 billion annually. So far, more than 21,400 customers have paid their gas bills through Raast QR codes, with payments worth Rs51.8 million recorded.

Similarly, 10 out of 11 electricity distribution companies (DISCOs) are now printing Raast QR codes on their bills. The remaining company, Tesco, has also signed an agreement to adopt the system. Over 27,900 customers have already paid electricity bills using these QR codes, with transactions exceeding Rs128 million.

The total customer base of all DISCOs is around 35 million, and their yearly collections reach Rs4 trillion. Training sessions for utility companies were organized by the State Bank of Pakistan (SBP) and Karandaaz to ensure smooth implementation of Raast payments.

The National Database and Registration Authority (NADRA) has also joined the digital shift. Raast QR payments are now available at 949 NADRA centres and through the PAK ID mobile app, which has 10.7 million users. These efforts have boosted cashless transactions at NADRA centres from 66% to 76% by October 2025.

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From mid-August to October, over 161,000 transactions were completed using Raast. Currently, Raast QR payments make up 10% of all cashless transactions through NADRA, showing steady growth in user adoption. The total yearly potential for digital collections through Raast is estimated at Rs28.47 billion, with nearly 27 million consumers expected to use the system.

Islamabad has already taken the lead in enforcing digital payments. The CDA now requires all licensed businesses to display Raast QR codes for transactions. A Merchant Acquisition Committee has also been formed to monitor progress and coordinate with partner banks.

So far, more than 38,800 retail stores in Islamabad have been equipped with Raast QR payment systems, supported by 12 partner banks.

This move marks a significant step towards building a cashless economy, promoting convenience, transparency, and financial inclusion across Pakistan.