The government of Pakistan is set to digitize all federal and provincial payments by June 2026, meaning that payments for salaries, pensions, taxes, and utility bills will be made online instead of with cash.
To discuss this major shift toward a cashless economy, the National Assembly’s Finance Committee, chaired by Syed Naveed Qamar, recently met with officials from the State Bank.
Right now, Pakistan has 226 million bank accounts, but only 96 million are unique.
The country also has 19,000 bank branches, 20,000 ATMs, and many merchants that accept digital payments using QR codes.
Importantly, people will not have to pay any fees for cashless transactions.
The committee chairman warned the government not to shut down mobile or internet services often because it can harm people’s daily lives.
He said connectivity must stay active no matter what political events happen.
The State Bank Governor, Jameel Ahmad, said overseas Pakistanis in Gulf countries will be able to send money directly to Pakistan using linked digital accounts.
But this system will only allow sending money to Pakistan, not the other way around.
By June 2026, Pakistan aims to introduce a cashless economy at both federal and provincial levels.
They also want 75% of young people to use digital financial services by 2028. The State Bank has given licenses to five companies for digital payments, including Easypaisa and JazzCash.
The government will cover the cost of merchant fees on digital payments, so businesses won’t have to pay extra.
However, if customers make mistakes or face fraud, the banks won’t pay compensation.
Instead, the responsibility will be on the digital platform where the problem happened.
To protect customers, the committee suggested creating special funds for consumer protection in the digital payment system.
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Pakistan’s move to shift all government payments to digital platforms by 2026 is a big step toward modernizing the economy.
With millions of bank accounts and growing digital merchants, the infrastructure is ready for this change.
Covering merchant fees encourages businesses to adopt cashless payments, which can boost digital transactions.
However, challenges remain, such as ensuring internet connectivity and protecting users from fraud without bank compensation.
The government’s plan to include a majority of young people in digital finance shows a focus on the future, but consumer protections and clear regulations will be key for success.
This shift could also help bring Pakistan’s large undocumented economy into the formal financial system, improving transparency and tax collection.
