Pakistan eyes doubling digital transactions to 15 billion by June 2026 

People wait to use an ATM bank machine in Rawalpindi on June 9, 2023. (AFP)
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Updated 30 October 2025
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Pakistan eyes doubling digital transactions to 15 billion by June 2026 

  • Pakistan’s undocumented economy estimated at around 40 percent of its GDP, says Finance Adviser Khurram Schehzad 
  • Digitizing even modest portion of cash transactions could save Pakistan approximately $590 million annually, he says 

KARACHI: Pakistan’s government is eyeing increasing the country’s annual digital transactions from 7.5 billion to 15 billion by June 2026, Adviser to the Finance Minister Khurram Schehzad said this week amid Islamabad’s push to promote a cashless 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 and promoting corruption. 

Speaking at the 5th Pakistan Future of Retail Business Summit and Expo held in Karachi on Wednesday, Schehzad said the government’s Cashless Pakistan Initiative aimed to enhance accountability. 

“Highlighting the key targets of the initiative, Schehzad said the number of monthly active Raast QR merchants will increase from 500,000 to 2 million by June 2026, annual digital transactions will double from 7.5 billion to 15 billion by the same period,” the Press Information Department (PID) said. 

He said Islamabad also aimed to digitize 100 percent of government payments by December 2026, noting that a large share of transactions in Pakistan still involve cash. 

The official added that Pakistan’s undocumented economy is estimated at around 40 percent of its gross domestic product, leading to inefficiencies and revenue leakages. 

“Digitizing even a modest portion of cash transactions could save the country approximately Rs164 billion annually, while reducing the undocumented economy by 25 percent could unlock over Rs1 trillion in additional resources,” Schehzad noted. 

Pakistan’s government has recently undertaken measures to promote digital transactions in the country. The Pakistan Airports Authority (PAA) announced on Tuesday that it 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 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’s Punjab deploys satellites, drones, AI to combat smog

Updated 59 min 15 sec ago
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Pakistan’s Punjab deploys satellites, drones, AI to combat smog

  • Senior minister warns industrial masks may become necessary without a change in public attitudes toward pollution
  • Cities in Punjab face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution

ISLAMABAD: Punjab Senior Minister Marriyum Aurangzeb on Wednesday said Pakistan’s most populous province deployed satellites, drones and artificial intelligence to tackle smog, warning that industrial masks may become necessary if public attitudes toward air pollution did not change.

Punjab cities face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution that threatens public health and daily life. The smog season typically begins in late October, peaks between November and January and can persist through February.

Smog causes symptoms such as sore throats, eye irritation and respiratory illnesses, while prolonged exposure raises the risk of stroke, heart disease and lung cancer. Children are more vulnerable due to higher breathing rates and weaker immune systems.

“We have the AI machine-learning forecasting system in place, surveillance drones and technology cameras,” Aurangzeb said while addressing an event.

“At present, what is considered one of the world’s best environmental protection forces — with training, equipment, technology and digitally integrated data — is operating in Punjab,” she added.

Aurangzeb said surveillance is now being carried out through drones.

“There is monitoring, technology, cameras,” she continued. “Everything is digital.”

The minister maintained the eastern corridor from India was a major source of smoke which becomes active during the winter season.

She said this was the first time a complete testing system was introduced by the Environmental Protection Agency to measure pollution released by vehicles.

She added the government has loaned 5,000 super seeders to farmers, which are agricultural machines that plant crops directly into fields without removing leftover stubble, reducing crop burning, and helping curb winter smog.

Aurangzeb warned the situation could reach a point where people may have to use industrial masks and carry therm around like a “purse or wallet.”

“This will become a mandatory item if we do not change our attitudes and habits toward air quality, climate and conservation.”

Pakistan’s main urban centers routinely rank among the most polluted cities in the world, with vehicular emissions remaining one of the top contributors to air pollution.

The severe air pollution also undermines economic productivity and diminishes the quality of life for millions of residents.