Islamabad: The Government of Pakistan’s initiative to establish a cashless economy has reached significant milestones in its first year, as revealed in a recent review meeting chaired by the Minister of State for Railways and Finance, Bilal Azhar Kayani. The initiative has successfully expanded the digital payments ecosystem, with annual digital transactions rising from 6.9 billion to 11.3 billion and the number of active digital payment merchants increasing from 0.5 million to over 2 million. This progress is largely attributed to the Raast QR Code initiative, which also contributed to the growth of digital banking users to over 135 million.

According to Press Information Department, the ‘Cashless Pakistan’ initiative, launched in June 2025, is structured around three key areas: enhancing public convenience, promoting transparency, and advancing the formal documentation of the economy through digital payments. The initiative operates under the direct supervision of the Prime Minister and includes three sub-committees focused on digital payments innovation, digital public infrastructure, and digitizing government payments.

Mr. Kayani highlighted progress in financial inclusion, which has grown to 69 percent, and noted efforts to reduce the gender gap through targeted interventions. He also reviewed the digitization progress of public sector entities, with 25 high-impact federal and provincial bodies set for complete digitization by December 2026. In government-to-people payments, approximately 75% of transactions are now conducted digitally.

The Minister of State stressed the importance of maintaining this momentum to further Pakistan’s digital transformation. He reaffirmed the government’s commitment to working with regulators, financial institutions, fintech companies, and the private sector to expand digital payments and ensure a transparent economy. To uphold transparency and efficient use of public funds, a third party has been engaged to validate progress and address reporting gaps.

The review meeting was attended by senior officials from various government and financial institutions, including the State Bank of Pakistan, Federal Board of Revenue, and representatives from digital payment companies and banks.