Pakistan PM orders doubling of digital payment targets to boost cashless economy

In this handout photograph taken and released by Pakistan's Prime Minister Office on April 24, 2025, Pakistan's Prime Minister Shehbaz Sharif chairs a high level security meeting with the chiefs of the Pakistan forces and other government officials at the Prime Minister House in Islamabad. (AFP/File)
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Updated 03 July 2025
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Pakistan PM orders doubling of digital payment targets to boost cashless economy

  • Move aims to deepen transparency, widen tax net as mobile app users set to rise from 95-120 million
  • Government targets expansion of QR code usage, e-payments and Internet access across the country

ISLAMABAD: Prime Minister Shehbaz Sharif has ordered the doubling of all key digital economy targets, including mobile-based payments, QR code adoption, and overall transaction volumes, as part of Pakistan’s push to accelerate its transition to a cashless economy, his office said on Thursday.

The directive comes as authorities aim to increase mobile payment users from 95 million to 120 million, and QR code-enabled merchants from 0.9 million to 2 million. The total value of digital transactions is expected to rise from Rs7.5 billion ($26.9 million) to Rs12 billion ($43 million), according to figures shared in a meeting chaired by Sharif on Thursday. A statement released after the discussions did not provide a timeline for meeting these targets.

Sharif said the targets were not ambitious enough and must be doubled across the board to match the scale of Pakistan’s digital transformation agenda.

“A digital transaction system is essential for bringing transparency to the economy,” Sharif said. “It is an urgent need of the hour to ease payments between citizens and businesses and raise awareness about the use of digital systems.”

Pakistan, a country of over 240 million people, has a vast informal economy and low tax compliance. The government has long identified digitization as a key tool to improve governance, reduce corruption, and expand the country’s narrow tax base.

Three committees — the Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee, and the Government Payments Committee — have already been formed to oversee the transition. 

At Thursday’s meeting, Sharif directed the bodies to present “workable proposals in collaboration with all stakeholders,” the statement said.

The State Bank of Pakistan is developing strategies to simplify digital transactions for traders, including special incentive packages for small businesses. The government also plans to expand the use of digital mobile apps and improve access to digital public infrastructure.

Sharif was also briefed on new services set to launch soon, including e-stamping, as well as public Wi-Fi expansion across hospitals, schools, parks, government offices and metro lines in Islamabad.

He instructed officials to roll out these facilities across all federal territories, as well as Azad Jammu and Kashmir and Gilgit-Baltistan.


Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate

Updated 26 February 2026
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Pakistan says responding to Afghan ‘offensive operations’ after border fire as tensions escalate

  • Afghan Taliban spokesperson says “large-scale offensive operations” launched against Pakistani military bases
  • Pakistan says Afghan forces opened “unprovoked” fire across multiple sectors along shared border

ISLAMABAD: Afghanistan’s Taliban authorities said on Thursday they had launched “large-scale offensive operations” against Pakistani military bases and installations, prompting Pakistan to say its forces were responding to what it described as unprovoked fire along the shared border.

The escalation follows Islamabad’s weekend airstrikes targeting what it said were Tehreek-e-Taliban Pakistan (TTP) and Daesh militant camps inside Afghanistan in response to a wave of recent bombings and attacks in Pakistan. Islamabad said the strikes killed over 100 militants, while Kabul said dozens of civilians were killed and condemned the attacks as a violation of its sovereignty.

In a post on social media platform X, Afghan government spokesperson Zabihullah Mujahid said Afghanistan had launched “large-scale offensive operations” in response to repeated violations by the Pakistani military.

 

 

Pakistan’s Ministry of Information said Afghan forces had initiated hostilities along multiple points of the frontier.

“Afghan Taliban regime unprovoked action along the Pakistan–Afghanistan border given an immediate, and effective response,” the ministry said in a statement.

The statement said Pakistani forces were targeting Taliban positions in the Chitral, Khyber, Mohmand, Kurram and Bajaur sectors, claiming heavy Afghan casualties and the destruction of multiple posts and equipment. It added that Pakistan would take all necessary measures to safeguard its territorial integrity and the security of its citizens.

 

 

Separately, security officials said Pakistani forces had carried out counterattacks in several border sectors.

“Pakistan’s security forces are giving a befitting reply to the unprovoked Afghan aggression with full force,” a security official said, declining to be named. 

“The Pakistani security forces’ counter-attack destroyed Taliban’s hideouts and the Khawarij fled,” they added, referring to TTP militants. 

The claims from both sides could not be independently verified.

Cross-border violence has intensified in recent weeks, with Pakistan blaming a surge in suicide bombings and militant attacks on militants it says are based in Afghanistan. Kabul denies providing safe havens to anti-Pakistan militant groups.

The clashes mark the third major escalation between the neighbors in less than a year. Similar Pakistani strikes last year triggered weeklong clashes before Qatar, Türkiye and other regional actors mediated a ceasefire in October.

The 2,600-kilometer (1,600-mile) frontier, a key trade and transit corridor linking Pakistan to landlocked Afghanistan and onward to Central Asia, has faced repeated closures amid tensions, disrupting commerce and humanitarian movement. Trade between the two nations has remained closed since October 2025.