Pakistan Digitalization / Automation

KARACHI: In a major step towards making big payments through digital channels, the State Bank of Pakistan (SBP) said on Thursday it had chalked out plans move all the government payments through Raast – the country’s instant payment system – by the end of ongoing fiscal year 2025-26.

“We have plans that with the close of this fiscal year we will be having all government payments go to Raast. We are working very aggressively,” SBP deputy governor Saleem Ullah said this while speaking at the launch of a study titled ‘Merchant Payments on RAAST: Responsible Pricing for Impact and Inclusion.’

He further said the government had announced subsidy for merchants in Raast to share their cost and encourage them to join the digital payment platform.


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The subsidy programme for person-to-merchant/P2M QR Code based transactions is not limited only to the ongoing fiscal year (FY26), but this is a three-year programme. The government has already allocated Rs3.5 billion subsidy for September 2025 to June 2026 about a week ago.

“The subsidy would ensure merchants face zero or minimal cost in adopting digital platforms. It shall be paid at the rate of 0.5% of the value of each Raast P2M QR Code based transaction or Rs100, whichever is lower,” the official said.

“There is more than Rs11.2 trillion to Rs11.3 trillion available of cash in the economy. If Rs2.5 trillion to Rs3 trillion of this is brought back into the banking system, it will benefit everybody – banks, fintechs and all stakeholders – and help overcome the huge undocumented and the informal economy, the deputy governor said.

“The ultimate goal is to win the war against cash and that can only be achieved through partnerships and collaborations among stakeholders. This will help accelerate digitalisation of the economy and expedite inclusive growth.”

The United Nations (UN)-based Better Than Cash Alliance conducted the study in consultation with SBP, financial service provider and industry stakeholders. The study recommends a fee to be paid to merchants on P2M transactions on Raast.

‘Pakistan may go cashless in 3-year’

Better Than Cash Alliance, managing director, L. Nshuti Mbabazi said Pakistan might go cashless within the next three years.

“Pakistan has everything required to go cashless in less than three years,” Mbabazi said while addressing the occasion.

“You have everything. The banks present here show that appetite. Infrastructure, the connectivity to get it going, I am sure when the business case is making sense infrastructure investors will invest.”

SBP designated as resolution authority to deal with distressed banks, protect depositor interests

She urged the regulators and the government to make effective policies that build an ecosystem that leaves no one behind and drives financial inclusions and they mobilise trillions of cash in the economy.

Fee on Raast recommended

Raza Matin of Pakistan Leads, Better Than Cash Alliance, said the study had recommended a 0.35% MDR (Merchant Discount Rate) floor across most sector to protect the business models of acquirers that couldn’t monetise beyond transactional income.

Other recommendations were including to set specific rates for price-sensitive segments like fuel, education, and utilities, as well as higher-risk sectors such as e commerce; eliminate issuers interchange fees entirely to reduce merchant burden; introduce a zero fee for microtransactions (below Rs300) and assure merchants that P2M data would not be used for tax enforcement in the early phase.

While talking to journalists, Matin said they had recommended pricing, as there was a cost in doing on online transactions. “However, there is no price on person-to-person (P2P) transactions on Raast, nor is there a recommendation to price P2P transactions.”
 

Digitalisation: all govt payments will go via Raast by FY26, says SBP​


Over Rs11 trillion of cash available in Pakistan economy, says central bank official

Salman Siddiqui
October 2, 2025

KARACHI: In a major step towards making big payments through digital channels, the State Bank of Pakistan (SBP) said on Thursday it had chalked out plans to move all the government payments through Raast – the country’s instant payment system – by the end of ongoing fiscal year 2025-26.

“We have plans that with the close of this fiscal year we will be having all government payments go to Raast. We are working very aggressively,” SBP deputy governor Saleem Ullah said this while speaking at the launch of a study titled ‘Merchant Payments on RAAST: Responsible Pricing for Impact and Inclusion.’

He further said the government had announced subsidy for merchants in Raast to share their cost and encourage them to join the digital payment platform.

The subsidy programme for person-to-merchant/P2M QR Code based transactions is not limited only to the ongoing fiscal year (FY26), but this is a three-year programme. The government has already allocated Rs3.5 billion subsidy for September 2025 to June 2026 about a week ago.

“The subsidy would ensure merchants face zero or minimal cost in adopting digital platforms. It shall be paid at the rate of 0.5% of the value of each Raast P2M QR Code based transaction or Rs100, whichever is lower,” the official said.

“There is more than Rs11.2 trillion to Rs11.3 trillion available of cash in the economy. If Rs2.5 trillion to Rs3 trillion of this is brought back into the banking system, it will benefit everybody – banks, fintechs and all stakeholders – and help overcome the huge undocumented and the informal economy, the deputy governor said.

“The ultimate goal is to win the war against cash and that can only be achieved through partnerships and collaborations among stakeholders. This will help accelerate digitalisation of the economy and expedite inclusive growth.”

The United Nations (UN)-based Better Than Cash Alliance conducted the study in consultation with SBP, financial service provider and industry stakeholders. The study recommends a fee to be paid to merchants on P2M transactions on Raast.

‘Pakistan may go cashless in 3-year’

Better Than Cash Alliance, managing director, L. Nshuti Mbabazi said Pakistan might go cashless within the next three years.

“Pakistan has everything required to go cashless in less than three years,” Mbabazi said while addressing the occasion.

“You have everything. The banks present here show that appetite. Infrastructure, the connectivity to get it going, I am sure when the business case is making sense infrastructure investors will invest.”

She urged the regulators and the government to make effective policies that build an ecosystem that leaves no one behind and drives financial inclusions and they mobilise trillions of cash in the economy.

Fee on Raast recommended

Raza Matin of Pakistan Leads, Better Than Cash Alliance, said the study had recommended a 0.35% MDR (Merchant Discount Rate) floor across most sector to protect the business models of acquirers that couldn’t monetise beyond transactional income.

Other recommendations were including to set specific rates for price-sensitive segments like fuel, education, and utilities, as well as higher-risk sectors such as e commerce; eliminate issuers interchange fees entirely to reduce merchant burden; introduce a zero fee for microtransactions (below Rs300) and assure merchants that P2M data would not be used for tax enforcement in the early phase.

While talking to journalists, Matin said they had recommended pricing, as there was a cost in doing on online transactions. “However, there is no price on person-to-person (P2P) transactions on Raast, nor is there a recommendation to price P2P transactions.”
 
theyre fast bringing in a cashless system (digital currency) and slavery system once fully implemented.....i dont know why these people are so willing to bring in a facsist slavery system and to eliminate cash
govt having too much power over what u can buy......SLAVERY
 
PK781 said:
theyre fast bringing in a cashless system (digital currency) and slavery system once fully implemented.....i dont know why these people are so willing to bring in a facsist slavery system and to eliminate cash
govt having too much power over what u can buy......SLAVERY
Click to expand...

Modern states esp. these wannabe democracies are the most pathetic display of governance known to mankind in recent history.

Considering what type of population behaviour and social norms Pakistan has and keeping in mind what is going on in the world, where mega-corporations are taking over countries.
I cannot even begin to imagine how stupid that person or that team was who decided that we will double down on the jew owned financial system instead of developing an alternative.
The same system that has effectively made us impotent against west regarding our most crucial isssues eg. Palestine.
 
he federal government has approved a comprehensive redesign of Pakistan’s national passport, one of the most significant updates to the country’s travel document in recent years.

The Directorate General of Immigration and Passports (DGIP) has received formal authorization from the Ministry of Interior to move forward with the project.

According to official sources, the redesigned passport will feature images of historical and cultural landmarks from all four provinces, showcasing Pakistan’s rich heritage and national unity. The new design aims to blend artistic representation with modern aesthetics, following international trends in passport design.

Alongside the visual upgrade, the passport will include advanced security features to enhance protection against forgery and misuse. Printing of the updated passports will begin once technical preparations are complete, as part of ongoing reforms to improve document authenticity and streamline international verification.

This redesign comes after another major reform earlier this year, when the government began including mothers’ names alongside fathers’ on all new and renewed passports — a move aimed at aligning national documentation with global standards and social progress.

Officials have yet to announce a launch date, but confirmed that preparations for printing the modernized passports are currently underway.
 
as far as I understand, they are adding mothers name in the passport. I don't remember any passport with the mother's name before... But what else is changed?

On British passport, we don't even have father's name... I think this is unnecessary change
 
Mr X said:
as far as I understand, they are adding mothers name in the passport. I don't remember any passport with the mother's name before... But what else is changed?

On British passport, we don't even have father's name... I think this is unnecessary change
Click to expand...

We dropped in ranking from 96th place last year to 103rd this year, but Allah ka shukar, we are still ahead of Afghanistan at 106th.

Other than that, I do not understand the fascination with mother and father names on documentation.
 
Mr X said:
as far as I understand, they are adding mothers name in the passport. I don't remember any passport with the mother's name before... But what else is changed?

On British passport, we don't even have father's name... I think this is unnecessary change
Click to expand...
security features , should deter fakes .
 
Mr X said:
as far as I understand, they are adding mothers name in the passport. I don't remember any passport with the mother's name before... But what else is changed?

On British passport, we don't even have father's name... I think this is unnecessary change
Click to expand...

Things are so weird in Pakistan.
Me/American wife were applying for Pakistan's 'Family' Visa some months ago. It was all online with weird questions like her parents' names and maybe more info about them. And about her own 'religion'. I was a little stumbled filing the application but figured it out and got the visa. She was shaking her head in disbelief. Sigh!

Any oldies remember that Pakistan's passport into the 90s had quite a list of countries NOT allowed to visit: They were the Warsaw Pact / Soviet block countries... Hungary... Now all countries are allowed except Israel.
 
Meengla said:
Things are so weird in Pakistan.
Me/American wife were applying for Pakistan's 'Family' Visa some months ago. It was all online with weird questions like her parents' names and maybe more info about them. And about her own 'religion'. I was a little stumbled filing the application but figured it out and got the visa. She was shaking her head in disbelief. Sigh!

Any oldies remember that Pakistan's passport into the 90s had quite a list of countries NOT allowed to visit: They were the Warsaw Pact / Soviet block countries... Hungary... Now all countries are allowed except Israel.
Click to expand...
I am surprised to hear that as I didn't know other countries other than Israel were also disallowed. Pakistani government has always been incompetent. For example is this even a news that Pakistani passport design is changed? UK's passport design was changed at least 3 times in the last 10 years and yet no one talks about it.

You are right that Pakistanis ask too many unnecessary questions in any application form you come across. Pakistan should follow Turkey model and reduce the number of questions to bare minimum. Ideally name, date of birth, citizenship and passport number should be enough for visa application unless the nationality is Indian, then you can ask a few more questions if need be
 
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