The government has announced plans to provide digital wallets to all eligible beneficiaries of the Benazir Income Support Programme (BISP) during the current year.

The new wallets will allow beneficiaries to receive their financial assistance digitally while also giving them access to other basic financial services.

Speaking at a ceremony for the launch of Z-Wallet, Minister of State for Finance Bilal Azhar Kayani said the government, public institutions and private sector were working together to promote digital payments across Pakistan.

He said the digital wallet initiative would help make financial transactions easier and more accessible for millions of people receiving government support.

Raast Driving Digital Payments

Bilal Azhar Kayani highlighted the role of Raast, Pakistan’s instant payment system, in expanding digital transactions.

He said the government was working to make Raast simpler and more user-friendly so that more people could benefit from digital payment services.

According to the minister, the number of merchants using digital payment facilities has crossed 2 million, while the number of digital banking users has reached 137 million.

QR Payments Get Boost

The minister said the government had also provided a subsidy on the Merchant Discount Rate (MDR) to encourage businesses to accept QR-code payments.

He added that significant progress had been made in the digitalisation of government payments as part of broader efforts to modernise the country’s financial system.

Digital payment usage in government institutions has increased sharply, rising from 9% to 76%.

Similarly, digital payments in self-accounting entities have increased from 5% to 75%, according to the minister.

More Services Through Wallets

More than 10 million BISP beneficiaries are already receiving their payments through digital channels, according to the government.

The new digital wallets will work much like bank accounts, allowing beneficiaries to use the money they receive for a wider range of financial transactions.

Users will be able to pay utility bills, transfer money and access other financial services through their wallets.

Push Towards a Digital Economy

The government says the move is part of a wider strategy to shift public payments towards digital platforms.

Officials believe greater use of digital payments can improve transparency, reduce transaction difficulties and make government assistance more efficient.

The initiative could also give millions of BISP beneficiaries greater control over their funds while reducing reliance on cash-based payment methods.