Pakistan Moves to Update Payment Laws, Making QR Code Payments Mandatory

The Finance Division has prepared a draft legal package to amend The Payment Systems and Electronic Fund Transfers Act, 2007, introducing a mandate for at least one digital payment option, including Raast QR codes, and granting enforcement powers to local governments.

Official documents reveal that the draft amendment has been sent by the Finance Secretary to the Prime Minister’s Office for in-principle approval. Once cleared, it will be circulated to the Cabinet and the Cabinet Committee for Disposal of Legislative Cases (CCLC) for formal approval.

This legislative push is part of Pakistan’s broader Cashless Pakistan initiative, aimed at driving digital payment adoption at retail and grassroots levels, reinforcing the government’s commitment to a fully cashless public finance ecosystem.

Establishing the Government Payments and Receipts Transformation Unit

To coordinate this ambitious shift, Pakistan has established the Government Payments and Receipts Transformation Unit (GPRTU) under the Ministry of Finance. The unit will oversee digital enablement of government entities, ensuring seamless integration with Raast, the country’s instant payment system.

GPRTU will serve as the central hub for:

• Developing Raast Connect for government-facing services.
• Guiding departments in onboarding to payment aggregators.
• Facilitating business process re-engineering.
• Securing technical expertise from NITB and provincial IT boards.

The initiative covers both Government-to-Person (G2P) and Person-to-Government (P2G) payments, ensuring standardized, timely, and end-to-end digitization across the public sector.

Cashless Pakistan Targets and Progress

The government has set ambitious milestones for digital adoption by December 2026:

• 2 million active digital merchants.
• 120 million digital banking users.
• 15 billion annual digital transactions.
• 100% digitization of non-tax P2G payments.
• Over 80% of digital remittances directly credited to bank accounts.

As of November 2025, Pakistan recorded 3.3 billion digital transactions, with 89% of certain P2G streams digitized. Financial inclusion rose to 67%, with a roadmap to reach 70% by 2026, while gender disparities in financial access continue to decline.

Digital Transformation Across Federal and Provincial Entities

Several high-impact federal departments are transitioning to digital payments, including the Power Division, Petroleum Division, Pakistan Railways, NADRA, and Pakistan Post Office, with full Raast-based integration planned by 2026. On the G2P side, BISP, Pakistan Military Accounts Department, and Central Directorate of National Savings have begun large-scale digital disbursements, targeting full digitization between March and June 2026.

At the provincial level, key departments in Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, and Gilgit-Baltistan are being digitized, particularly for salaries, pensions, vendor payments, and fees. Islamabad Capital Territory has already issued bylaws mandating digital payment acceptance at retail outlets, while other provinces are reviewing or drafting Digital Payment Acts.

Tangible Wins in Digital Payments

Several milestones have been achieved in recent months:

• e-Stamp Solution: Fully digital e-Stamp integrated with SBP’s 1-Link system, eliminating paper-based processing.

• Digital Connectivity Expansion: Internet access provided to 178 schools and 10 Basic Health Units in ICT, alongside free Wi-Fi at 28 public locations.

• Integration of Apps: Islamabad City App merged with Pakistan Asan Khidmet App (PAK App) for Raast-powered cashless payments, surpassing 1.6 million downloads.

• Raast Payroll Implementation: Federal and provincial governments have processed over Rs 1 trillion through Raast as of November 30, 2025, digitizing approximately 6,000 high-value offices, including all 968 Public Works divisions.

Future Outlook

With upcoming Social Protection Wallets under SBP–BISP, interoperability among six participating banks by June 2026, and continued legal and institutional reforms, Pakistan’s transition toward a cashless, transparent, and inclusive economy is accelerating, officials noted.

The draft legal amendment to mandate Raast QR code payments marks a critical step in embedding digital finance into everyday transactions, potentially transforming public service payments and citizen engagement at the grassroots level.

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