Govt Mandates Digital Payments at All POS Outlets

ISLAMABAD: The Finance Division has prepared amendments to the Payment Systems and Electronic Fund Transfers Act, 2007, mandating at least one digital payment option (such as QR codes) at all points of sale, with local governments empowered to enforce compliance. The finance secretary has forwarded the proposal to the Prime Minister’s Office for in-principle approval before cabinet circulation. To drive the cashless public finance shift, the government established the Government Payments and Receipts Transformation Unit (GPRTU) under the Ministry of Finance. The unit will coordinate digital enablement of government entities, oversee Raast integration, lead G2P disbursements and P2G collections, build a government-facing Raast Connect, support aggregator onboarding, re-engineer processes, and coordinate technical support with NITB and provincial IT boards. Under the Cashless Pakistan initiative, targets for December 2026 include 2 million active digital merchants, 120 million digital banking users, and 15 billion annual digital transactions. Non-tax P2G payments aim for full digitisation, while digital remittances to bank accounts target over 80%. As of November 2025, Pakistan recorded 3.3 billion digital transactions, with 89% of certain P2G streams digitised. Financial inclusion reached 67%, with a roadmap to 70% by 2026 and a narrowing gender gap. Several federal entities — Power Division, Petroleum Division, Pakistan Railways, NADRA, Pakistan Post — are at various stages of Raast-based integration, targeting full transition by 2026. Major G2P bodies like Benazir Income Support Programme, Pakistan Military Accounts Department, and Central Directorate of National Savings have set timelines between March and June 2026. At the provincial level, departments in Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, and Gilgit-Baltistan are prioritised for salary, pension, vendor, and fee payments. ICT has issued bylaws mandating digital payments at retail outlets; provinces are reviewing/drafting digital payment laws, with all except AJK issuing interim notifications requiring digital acceptance. Recent steps include a fully end-to-end e-stamp solution for ICT integrated with 1-Link, eliminating physical documentation, plus expanded digital connectivity in ICT through internet access to schools/health units and free public Wi-Fi at major locations.