Pakistan Accelerates Shift Toward Cashless Economy as Digital Banking Users Reach 123 Million

Pakistan has made significant progress toward becoming a cashless economy, with wide-ranging reforms underway to digitize government payments, expand digital financial inclusion, and strengthen national digital infrastructure, according to updates presented during the Prime Minister’s seventh review meeting on the Cashless Pakistan initiative.

The government’s strategic roadmap focuses on digital payments innovation, digital public infrastructure, and the complete digitization of government-to-person (G2P) and person-to-government (P2G) transactions. As of November 2025, Pakistan has recorded 3.3 billion digital transactions annually, while 89 percent of non-tax P2G payments have already been digitized.

Pakistan Accelerates Shift Toward Cashless Economy as Digital Banking Users Reach 123 Million

Official data shows strong growth in digital usage across the country. The number of digital banking users has reached 123 million, while active merchants accepting digital payments stand at 0.76 million. The government aims to increase this figure to 2 million merchants by June 2026.

Financial inclusion has also improved, with 69 percent of the population now financially included. Efforts are underway to further reduce the gender gap in financial access, which has narrowed to 30 percent.

Government Payments Go Digital

A major milestone has been achieved in digitizing government payments. Federal and provincial governments have processed over PKR 1 trillion in salaries, pensions, and vendor payments through Raast up to November 2025. More than 6,000 high-value government offices, including all public works divisions, have transitioned to digital payment systems.

Utility companies have begun printing Raast QR codes on electricity and gas bills. So citizens can pay digitally through multiple channels. The Benazir Income Support Programme (BISP) is also transitioning fully to digital disbursements, with plans to move all beneficiaries to digital wallets by 2026.

Expansion of Digital Infrastructure

Significant investments are being made in digital public infrastructure. The Pakistan Asaan Khidmat (PAK) App has been integrated with the Islamabad City App. It enables citizens to access government services and make payments through a single platform. The app has recorded 1.6 million downloads as of November 2025. Moreover, it has collected PKR 963,757,121 in revenue.

Additionally, an end-to-end digitized e-stamp solution has been finalized for Islamabad, eliminating the need for physical stamp papers. Public Wi-Fi has been rolled out at key locations in the capital, while internet connectivity has been provided to 178 schools and 10 basic health units.

Mandating Digital Payments Nationwide

To accelerate adoption, digital payment acceptance through QR codes has been made mandatory for retailers in Islamabad, with other provinces moving toward similar legal and regulatory frameworks. Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan, and Azad Jammu and Kashmir have issued notifications or initiated legislative amendments to enforce digital payment acceptance at business outlets.

As a result, 41,625 merchants have already been onboarded onto digital payment systems in the Islamabad Capital Territory alone.

Future Outlook

The government plans to operationalize Raast as a fully independent entity. It will complete the nationwide digitization of G2P and P2G payments. It will also bring millions of low-income beneficiaries into the digital financial system through social protection wallets.

Officials emphasized that the Cashless Pakistan initiative aimed at improving efficiency and transparency. It will also reduce transaction costs, enhancing financial inclusion and strengthening economic documentation across the country.

With strong momentum and coordinated federal-provincial efforts, Pakistan’s transition toward a cashless economy is expected to accelerate further in 2026.