Cashless Pakistan surpasses 11.3 billion digital transactions in first year

Pakistan's Cashless Pakistan initiative has surpassed key milestones in its first year, with the number of active merchants accepting digital payments increasing fourfold to more than 2 million and annual digital transactions rising to 11.3 billion, the Finance Division said Monday.

According to a government statement, Minister of State for Railways and Finance Bilal Azhar Kayani chaired a high-level review meeting to assess progress since the initiative was launched in June 2025 under the direct supervision of Prime Minister Shehbaz Sharif.

The Finance Division said annual digital transactions increased from 6.9 billion to 11.3 billion over the past year, while the number of active merchants accepting digital payments rose from 500,000 to more than 2 million, supported by the government's Raast QR Code initiative. The number of digital banking users also expanded to more than 135 million.

The initiative is built on three pillars: improving public convenience, enhancing transparency and accelerating the formal documentation of the economy through digital payments. Its implementation is overseen by three subcommittees responsible for digital payment innovation and adoption, digital public infrastructure, and the digitization of government payments.

The statement said financial inclusion increased to 69%, while the gender gap in access to financial services continued to narrow through targeted measures.

Kayani said the government had identified 25 high-impact federal and provincial entities for complete digitization through the Raast payment system by December 2026. He added that about 75% of government payment acceptance at centralized and self-accounting entities had already been digitized.

"The government remains committed to working closely with regulators, financial institutions, fintech companies and the private sector to expand digital payments, strengthen financial inclusion and support a transparent and documented economy," Kayani said, according to the statement.

The minister also called for validating reported progress, eliminating duplication and strengthening data reporting to ensure transparency and the prudent use of public funds. The Finance Division said an independent third party has been hired to assess the initiative's implementation.

The review meeting was attended by senior officials from the State Bank of Pakistan, the Federal Board of Revenue, the National Database and Registration Authority, the Pakistan Banking Association, Raast Payments Pakistan, commercial banks, telecommunications companies, fintech firms and other public-sector institutions, according to the statement.