SBP Plans Full Govt Payments via Raast by FY26

The State Bank of Pakistan (SBP) has unveiled plans to channel all government payments through Raast, the nation’s instant payment system, by the end of the 2025-26 fiscal year, signaling a robust push toward digitizing financial transactions.

SBP Deputy Governor Saleem Ullah announced this initiative during the launch of a study titled “Merchant Payments on RAAST: Responsible Pricing for Impact and Inclusion”, developed by the United Nations-based Better Than Cash Alliance in collaboration with the SBP, financial service providers, and industry stakeholders.

The report identifies key enablers for the responsible digitization of merchant payments and proposes a fee structure for person-to-merchant (P2M) transactions.

“Raast began with bulk payments, focusing on government-to-public (G2P) transactions, and by the end of this fiscal year, all government payments will flow through Raast,” Saleem Ullah stated. The SBP has urged government departments to adopt digital payments, with the bulk payments facility already facilitating dividend payments and other disbursements.

To boost merchant adoption, the government has introduced a subsidy program for Raast P2M QR code transactions, allocating Rs3.5 billion in subsidies from September 2025 to June 2026. Saleem Ullah emphasized that this initiative aims to reduce cash reliance, accelerate digitalization, and foster inclusive economic growth.

Raast’s person-to-person (P2P) payment facility has witnessed remarkable uptake. The first trillion rupees in transactions took 360 days to process, but now the same volume is achieved every nine days.

L Nshuti Mbabazi, Managing Director of the Better Than Cash Alliance, predicted that Pakistan could become a cashless economy within three years, citing robust infrastructure, connectivity, and regulatory support. She stressed the need for policies prioritizing micro and small businesses, ensuring inclusive access, and building a resilient digital payments ecosystem.

The SBP’s initiative, backed by the study, focuses on designing merchant solutions that are affordable, scalable, and sustainable, advancing Pakistan’s digital financial inclusion goals and making digital payments more convenient than cash for all citizens.