Pakistan sees retail payments surge to $592 billion in first quarter of FY26— report

A shopkeeper selling niqab or face veils waits for customers at a market in Karachi on November 24, 2025. (AFP/File)
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Updated 30 December 2025
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Pakistan sees retail payments surge to $592 billion in first quarter of FY26— report

  • Retail payment volumes rose to 2.8 billion transactions during the quarter, marking 10% increase
  • Expansion primarily driven by continued rise in mobile app-based banking, says Pakistan’s central bank

KARACHI: Pakistan saw retail payments surge to Rs166 trillion [$592 billion] during the first quarter of the current fiscal year, a report by the central bank said on Tuesday, registering an increase of six percent compared to the last quarter. 

In its quarterly report on payment systems, the State Bank of Pakistan (SBP) said retail payment volumes rose to 2.8 billion transactions to mark a 10% quarterly growth. It said the value of the payments surged to $592 billion during the same period. 

“This expansion was primarily driven by the continued rise in mobile app-based banking,” the SBP report said. 

The report further said digital payment channels accounted for 2.5 billion transactions, representing 90% of total retail payments compared to 87% in the same quarter last year. 

The central bank said mobile app-based payments dominated the digital landscape, with 2 billion transactions carried out through apps offered by banks, branchless banking (BB) providers and EMIs [electronic money institutions]. 

“These transactions constituted 81% of all digital payments and amounted to PKR 33.7 trillion [$120.3 billion] in value,” the SBP report said.

Internet banking also saw a “steady expansion,” with the report stating that an increasing number of users conducted transactions through digital channels. Payment cards in circulation increased to 61.3 million, the SBP said, of which 90% are debit cards and four percent are credit cards.

The report also said that a network of 20,527 ATMs facilitated 267 million transactions across the country during the quarter that amounted to Rs4.5 trillion [$16.1 billion]. 

“These developments collectively reflect continued progress toward a more inclusive, efficient, and digitally enabled payments ecosystem in Pakistan,” the SBP said. 


Nationalist Bollywood hit ‘Dhurandhar’ ignites India-Pakistan controversy

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Nationalist Bollywood hit ‘Dhurandhar’ ignites India-Pakistan controversy

  • Movie stars Ranveer Singh as an Indian intelligence agent who infiltrates alleged criminal networks in Karachi
  • Film has drawn sharp criticism from Pakistani officials while becoming one of the year’s biggest hits in India

A Bollywood spy thriller set in Pakistan has sparked heated debate across both countries over its portrayal of cross-border tensions, even as the film breaks box office records in India amid a surge in nationalist cinema.

“Dhurandhar,” starring Ranveer Singh as an Indian intelligence agent infiltrating criminal networks in Pakistan’s Karachi, has drawn sharp criticism from Pakistani officials and some international critics while becoming one of the year’s biggest commercial hits in India.

The 3.5-hour film, directed by Aditya Dhar, weaves real historical events including the 1999 plane hijacking, the 2001 Parliament attack, and the 2008 Mumbai attacks into a fictional narrative about an Indian spy’s mission to dismantle alleged links between Karachi gangs and terror networks.

Released Dec. 5 with minimal publicity, “Dhurandhar” has grossed more than 12.15 billion rupees ($134.76 million) in ticket sales, making it the highest-grossing Bollywood film last year. 

“It is a unique thing. Most films are set in India, but in this film, a RAW agent infiltrates Pakistan and is living there, hiding his identity, and the film portrays all of that through this setup, about Karachi and everything. That’s why it is such a good film. I mean, it is very important to watch this film,” said movie-goer Naresh Kumar.

The film represents a growing trend in Indian cinema toward nationalist blockbusters that align with Prime Minister Narendra Modi’s policies, following controversial hits like “The Kashmir Files” and “The Kerala Story” that sparked debates over historical accuracy while achieving commercial success.

In India, some film critics faced online harassment for negative reviews, prompting the Film Critics Guild to condemn “targeted attacks” against reviewers.

“Films that evoke patriotic fervor among audiences generally do well, but that is not to say that any film with this kind of subject would have done well,” said Bollywood film analyst Komal Nahta. “Everything seems to have gone right with the film.” 

The controversy highlights how cinema continues to reflect decades-old tensions between the nuclear-armed neighbors, who have fought four wars since partition in 1947. Fighting erupted between the countries in May following an attack on tourists in Kashmir that India blamed on Pakistan-backed militants.

In Pakistan’s Lyari neighborhood, which was depicted in the film, residents criticized the portrayal as inaccurate.

“It is a completely baseless movie because our neighboring country doesn’t know anything about our country,” said Mohammad Zohaib, a Lyari resident and burger shop owner. “They don’t know anything about Lyari, so how can they make a completely realistic film about someone?” 

The Pakistan Peoples Party filed legal action in a Karachi court last month over the film’s unauthorized use of assassinated former Prime Minister Benazir Bhutto’s image and its portrayal of party leaders as terrorist sympathizers.

“About 10 percent of what has been shown in the movie is reality, 90 percent is not real,” said Khizer Abdul Wahid, a Lyari resident and beauty salon owner.

Pakistan banned Indian films in 2019, but Bollywood remains popular there with audiences using VPNs or illegal downloads to watch new releases.

Theatre admissions in India have fallen 45 percent since their 2018 peak of 1.58 billion, according to Ernst and Young, as streaming services offer content that complements cheap mobile data available to most Indians.

Even global hits like the latest Avatar film struggled to secure screens due to “Dhurandhar’s” strong showing, analysts said.