Pakistan accelerates push toward cashless economy

August 18, 2025 (MLN): Pakistan is accelerating its efforts to transition toward a cashless economy, with the government placing digitization of financial transactions at the top of its reform agenda.

At a review meeting on the cashless economy held in Islamabad, Prime Minister Shehbaz Sharif emphasized that digitization is critical for boosting financial inclusion, curbing illicit transactions, and modernizing the economy.

He directed provincial chief secretaries to extend full cooperation with the federal government to ensure the Raast digital payment system is expanded down to the district level.

The Prime Minister expressed satisfaction with the progress achieved so far, noting that digital financial systems will play a pivotal role in enhancing transparency and efficiency in both public and private sector transactions.

Officials at the meeting briefed that Pakistan will build a comprehensive digital public infrastructure under which digital IDs will be developed for every citizen.

These IDs will integrate national identity cards, biometrics, and mobile numbers to allow secure and seamless payments across multiple platforms.

The meeting further highlighted that provincial governments have already made significant headway in linking government-to-public (G2P) and public-to-government (P2G) payments with the Raast system, marking a key step in driving adoption of digital transactions nationwide.

To strengthen the backbone of digital connectivity, federal development agencies have granted Right of Way for laying fiber-optic networks, while discussions are ongoing with Pakistan Railways and the National Highway Authority to extend digital infrastructure across the country.

The government’s push toward a cashless economy comes at a time when Pakistan is striving to enhance its digital economy, improve tax compliance, and expand financial inclusion.

The Raast system, launched by the State Bank of Pakistan in 2021, has already been integrated into various government payments, and authorities are now working to scale it further for broader public use.

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