ISLAMABAD: Pakistan’s government will activate digital wallets by the end of this month through which millions of beneficiaries will receive social protection payments, the Prime Minister’s Office (PMO) said in a statement on Monday as Islamabad accelerates its efforts to move toward a cashless economy.

Sharif launched 10 million digital wallets under the Benazir Income Support Programme (BISP), Pakistan’s flagship cash-transfer initiative for low-income households, in August. The Pakistani prime minister had termed the move as a “historic milestone” in the country’s journey toward transparency, financial inclusion and adopting a cashless economy.

Pakistan, which is a cash-dominated market especially considering the informal sector, has undertaken efforts in recent months to promote digital transactions. Officials have said promoting a cashless economy will promote accountability, curb corruption and prevent tax evasion.

Sharif chaired a review meeting of the government’s measures to promote cashless economy on Monday during which he was briefed on the status of the 10 million BISP digital wallets.

“[Participants] of the meeting were informed that these wallets will become fully functional by the end of this month, and the next tranche of payments to beneficiaries will be made through them,” the PMO said in a statement.

The prime minister was also informed that payment of electricity and gas bills are being made cashless through QR codes issued by instant digital payment platform Raast. The move would enable payment of bills worth billions of rupees digitally, the PMO said.

Sharif was briefed that the mobile application for obtaining government services in Islamabad has been linked with Raast to enable payments through it. The PMO added that issuing new business licenses in Islamabad has been made conditional on adopting digital payment systems, while all existing shops have been enabled to accept payments via Raast QR codes.

Sharif called for promoting awareness of the importance of a cashless economy in rural areas to fully eliminate informal economy.

“The entire world is rapidly moving toward a digital economy, and Pakistan must keep pace with global developments,” the prime minister said according to the PMO. “A cashless economy will lead to improved governance and a significant reduction in corruption.”