Pakistan to introduce ‘cashless’ services at airports in digitization push

Passengers wait at Jinnah International airport after all domestic and international flights were cancelled in Karachi on May 7, 2025. (AFP/File)
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Updated 28 October 2025
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Pakistan to introduce ‘cashless’ services at airports in digitization push

  • Pakistan, a country of over 240 million people, has a vast informal economy and low tax compliance
  • The government has long identified digitization as key tool to improve governance, increase compliance

KARACHI: The Pakistan Airports Authority (PAA) is introducing a cashless model at airports across the country, under which only digital service providers approved by the central bank will be able to provide services to customers, the PAA said on Monday, amid Islamabad’s push for digitization to transform the economy.

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.

In recent years, the State Bank of Pakistan (SBP) has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.

In a statement on Monday, the PAA said businesses and institutions at Pakistani airports will have to adopt the SBP-licensed digital system and those failing to do so will be liable to fines.

“This move will help in facilitating convenience, transparent transactions, and promoting a modern financial system for passengers,” it said. “Passengers will be able to pay in cash as well as adopt the new system, however, they are encouraged to adopt digital payment methods.”

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

The South Asian country is also developing digital identities of all its citizens to enable secure and efficient payments, Pakistani state media reported in August.

In July, Pakistan launched the Merchant Onboarding Framework that requires banks and payment providers to equip all merchants with the government’s Raast payment system-enabled digital tools such as QR codes and PoS [Point of Sale] systems.


Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

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Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

  • The amendments allow for QR-based verification, authentication controls, biometric expansion, and card format updates
  • The measures advance integrated digital governance through National Data Exchange Layer and broader digital ID ecosystem

ISLAMABAD: Pakistan has notified amendments to the National Identity Card and Pakistan Origin Card rules and introduced QR-based verification and stronger fraud controls, the National Database and Regulatory Authority (NADRA) said on Tuesday, amid efforts to strengthen the country’s digital ecosystem.

The amendments modernize Pakistan’s identity document framework by legally embedding QR-based verification, strengthening authentication controls across digital services, expanding biometric recognition and updating card formats for key citizen categories.

A core reform is the statutory introduction of the Quick Response (QR) code as a defined security and verification feature, authorizing the use of “QR code or any other technological feature” in lieu of current microchip enabling NADRA to adopt evolving verification technologies without repeated rule amendments.

This QR-enabled capability directly strengthens Pakistan’s Digital ID ecosystem and supports interoperability through the National Data Exchange Layer, according to the national database regulator.

“This establishes a robust legal basis for quick and secure verification of identity credentials in both offline and online environments,” NADRA said.

“This will also enable all citizens to carry similar card instead of currently prevalent two types of national identity cards one of which is with microchip and the other without.”

Pakistani state media reported in August that the country was developing digital identities of all its citizens to enable secure and efficient payments. The measures came as part of a broader effort to digitize the economy for greater transparency.

QR-based credentials allow rapid front-end validation of identity attributes in service delivery settings, while also enabling back-end systems to confirm authenticity and status through trusted exchanges. This is expected to improve speed, transparency and consistency of identity verification across government entities and regulated sectors, reduce manual handling, and lower the risk of fraud and impersonation, according to NADRA.

The amendments also strengthen the enforcement effect of card suspension. The Rules now clarify that where a card is suspended, all verification, authentication and related services linked to that card shall stand suspended forthwith. This closes a key risk area by ensuring that once a card is suspended, it cannot continue to be used through digital verification channels or institutional authentication processes.

“The amendments also introduce standardized identification for residents of Azad Jammu and Kashmir by requiring an inscription indicating ‘Resident of Azad Jammu and Kashmir’ in the manner specified by the Authority, thereby ensuring uniform geographic identification on the document,” NADRA said.

“Overall, these amendments strengthen the legal and technological foundations of Pakistan’s identity system by enabling secure QR-based verification, reinforcing the integrity of digital authentication services, improving biometric assurance,” it said. “They also advance readiness for integrated digital governance by supporting structured interoperability through the National Data Exchange Layer and a broader Digital ID ecosystem.”