Govt accelerates cashless transition

October 29, 2025(MLN): The government reaffirmed its commitment to building a resilient and digital economy as inflation drops to an average of 5%, marking a major step in stabilizing Pakistan’s economic landscape.

Speaking at the 5th Pakistan Future of Retail Business Summit and Expo in Karachi, Advisor to the Finance Minister Mr. Khurram Schehzad outlined reforms aimed at promoting digital inclusion, expanding the tax base, and accelerating the country’s transition towards a cashless economy.

Themed “Retail in a Changing World: Building Resilience in Pakistan’s Commerce,” the summit brought together key stakeholders from the public and private sectors. Mr. Schehzad, who inaugurated the event as Chief Guest, said the government’s reform agenda focuses on creating a transparent, documented, and growth-oriented economy that fosters business confidence, industrial revival, and long-term investment.

He highlighted that Pakistan’s consumption-driven economy should be viewed as an opportunity rather than a constraint, pointing to the country’s young, spending-oriented population as a major growth driver for producers and retailers.

Mr. Schehzad credited the decline in inflation to the government’s efforts to lower the cost of doing business, ensure affordable and predictable energy pricing, and stimulate industrial activity. “Reforms in taxation, energy pricing, and inter-provincial trade are now showing tangible results,” he said.

Discussing the Cashless Pakistan Initiative, he said the government under the supervision of Prime Minister Shehbaz Sharif and Finance Minister Senator Muhammad Aurangzeb is pushing for a digital and documented economy that could unlock over Rs1 trillion in additional resources by reducing the undocumented economy by 25%.

He explained that the initiative rests on three pillars: Conversion, Inclusion, and Adoption focused on digitizing government transactions, ensuring financial access for all citizens, and encouraging widespread use of digital payments.

Key targets include increasing monthly active Raast QR merchants from 500,000 to 2 million and doubling annual digital transactions to 15 billion by June 2026.

By December 2026, all government payments are expected to be digitized, while internet penetration is projected to rise from 60% to 80%.

Among the milestones achieved so far, Mr. Schehzad noted the opening of 10 million bank accounts for BISP women beneficiaries, the launch of Raast QR payments at NADRA offices and retail outlets, and Raast integration in utility billing for 12 million consumers.

Additionally, right-of-way charges on internet infrastructure have been abolished nationwide to cut costs and improve connectivity.

“These efforts are transforming Pakistan into a digitally enabled, transparent, and inclusive economy,” he said, adding that the separation of tax policy formulation from collection has strengthened institutional efficiency.

Mr. Schehzad emphasized that fiscal reforms, energy rationalization, and digital transformation are positioning Pakistan as a competitive regional hub for trade, retail, and investment.

He urged the private sector to actively support digital adoption and export-led growth, noting that public–private collaboration is essential for sustainable development.

The session was moderated by Mr. Rana Tariq Mehboob, Chairman of the Chairstore Association of Pakistan.

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