Pakistan Launches Independent Audit to Assess Cashless Economy Progress and Impact

The Government has announced plans to conduct an independent review and audit of its ambitious Pakistan cashless economy initiative, aimed at evaluating the program’s progress, efficiency, and overall impact on the country’s digital financial ecosystem. The audit, to be conducted by a qualified international consultancy selected through competitive bidding, will assess the initiative’s design, governance, implementation, and impact.

Launched to modernize government systems and promote a broader digital economy, the initiative seeks to increase financial inclusion, enhance transparency, reduce leakages in government transactions, and improve public service delivery. At the heart of the program is the development of a Digital Public Infrastructure (DPI), which will enable seamless digital payments for both public and private sector transactions, integrate a data exchange layer, and provide citizens with a single-sign-on platform for nationwide service accessibility.

The cashless economy initiative includes measures to encourage merchant adoption of digital payments, such as QR code deployment, reduced duties on payment processing equipment, and subsidized transaction fees through the RAAST payment rail. The government has also moved to accelerate digital infrastructure by waiving Right-of-Way (ROW) charges for laying fiber optics, a step already implemented by federal entities including Pakistan Railways, the National Highway Authority (NHA), and the Capital Development Authority (CDA), with provincial authorities expected to follow.

The initiative is overseen directly by the Prime Minister, who chairs periodic steering committee meetings. A dedicated committee has been established with three sub-committees focused on:

• Digital Payments Innovation and Adoption – chaired by the Governor of the State Bank of Pakistan.

• Development of Digital Public Infrastructure – chaired by the Federal Minister of IT.

• Digitization of Government Payments (G2P and P2G)—chaired by the Federal Secretary of Finance.

Progress is tracked using indicators such as the number of digital merchants, digital banking users, total digital transactions, Digital Payments Index rankings, financial inclusion rates, gender gaps in digital access, internet penetration, and the extent of government payments digitized.

Assessing the Cashless Economy Drive

Pakistan’s push towards a cashless economy represents one of the most ambitious digital transformation efforts in the country’s history. With a vision to modernize public finances, enhance transparency, and expand financial inclusion, the initiative seeks to shift both government operations and the broader economy onto a digitally enabled framework. By integrating government payments, merchant adoption, and citizen-facing digital services through platforms like RAAST, the initiative aims to create a seamless digital ecosystem benefiting citizens and businesses alike.

However, the scale and complexity of this undertaking present significant challenges. Successful implementation requires more than technology; it demands robust infrastructure, behavioral change among citizens and merchants, and coordinated governance across federal and provincial agencies. While measures like zero ROW charges for fiber deployment and subsidized merchant acquisition costs remove structural barriers, adoption hurdles remain. Rural populations may face connectivity issues, limited digital literacy, and hesitation in shifting away from cash-based systems, while small businesses may resist due to perceived costs or transaction reliability concerns.

The government’s decision to commission an independent review underscores the critical importance of accountability and objective assessment. Evaluating implementation, governance, and impact will reveal what is working, identify gaps, and ensure that the initiative advances financial inclusion and operational efficiency. It will also provide a benchmark for measuring the effectiveness of subcommittee oversight and citizen adoption metrics.

Ultimately, Pakistan’s cashless economy initiative is a test of both ambition and execution. Its success could transform the country’s financial landscape, making transactions faster, more transparent, and more inclusive. Achieving these outcomes will require strategic planning, cross-sector coordination, political will, and public trust, and the upcoming independent audit is a vital checkpoint to ensure the program stays on course.

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