SBP Targets Full Payment Digitization by 2026

The State Bank of Pakistan (SBP) announced that all federal and provincial payments will be fully digitized by June 2026, with state-owned enterprises (SOEs) expected to complete their digital payment transition by December 2026. Additionally, Pakistan plans to integrate its digital payment system, Raast, with the Arab Monetary Fund (AMF)’s Buna platform, facilitating swifter and more secure cross-border remittances from overseas Pakistanis.

During a briefing to the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, SBP Governor Jameel Ahmed detailed that this integration will streamline remittances but prohibit fund outflows. Buna, launched in 2020 by the AMF, is a cross-border, multi-currency payment platform supporting Arab and international currencies, including the Saudi Riyal and Emirati Dirham, with plans to include the Chinese Yuan to enhance regional trade and economic integration.

Governor Ahmed emphasized Raast’s remarkable growth, noting that its initial annual transaction volume of Rs 1 trillion is now processed in just nine days, reflecting rapid adoption. The government is steering toward a cashless economy, targeting digitization of all government payments—spanning federal, provincial, and local levels—by December 2026.

The SBP highlighted the launch of Mashreq Bank’s digital operations in Pakistan, completed in a record 12 months compared to the global five-year norm, with its global middle office now based in Pakistan.

Deputy Governor Saleem Ullah outlined a roadmap for digitizing government payments, confirming that federal and provincial payments will be fully digital by June 2026, followed by SOEs by December 2026. Minister of State for Finance Bilal Azhar Kayani assured the committee that the government would cover associated costs to spur adoption, positioning Pakistan as a regional leader in digital payments.

Finance Secretary Imdadullah Bosal explained that government services, including salaries, pensions, taxes, and utility bills, will transition gradually to the cashless system. The SBP clarified that banks will not cover user errors in digital transactions, but losses from fraud or system errors will be compensated if reported within two hours.

Deputy Governor Saleem Ullah underscored Pakistan’s robust financial infrastructure, with 95 million active mobile banking users, 226 million bank accounts, 19,000 bank branches, 20,000 ATMs, and 850,000 QR-enabled merchants. The system will support offline transactions, and consumers will face no fees for cashless payments.

Committee members voiced concerns about the digital ecosystem’s efficacy, noting that 50% of Pakistan’s economy remains undocumented. MNA Hina Rabbani Khar questioned the feasibility of cashless services amid unreliable internet connectivity and stressed the need for robust offline transaction support.