Pakistan’s digital banking users top 127 million amid shift to cashless economy

A salesman registers a credit card for a customer at a shop in Peshawar, Pakistan April 1, 2019. (Reuters/File)
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Updated 03 March 2026
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Pakistan’s digital banking users top 127 million amid shift to cashless economy

  • Government digitally disbursed $5.7 billion in salaries and pensions between July and January
  • Pakistan’s central bank aims to encourage traceable payments to curb tax evasion, corruption

ISLAMABAD: Pakistani officials told Prime Minister Shehbaz Sharif on Tuesday the number of digital banking users in the country had surpassed 127 million, the PM Office said, as the government pushes ahead with efforts to promote a cashless economy.

Pakistan has witnessed significant growth in digital transactions in recent years. The country’s central bank said last year that its instant digital payment system, Raast, had processed more than 892 million transactions worth Rs20 trillion ($72 billion) since its launch in 2021.

During a review meeting chaired by Sharif on the promotion of a cashless economy, officials said Rs1.6 trillion ($5.7 billion) were disbursed between July 2025 and January 2026 by the government in salaries, pensions and vendor payments directly through the Raast digital platform.

“The meeting was further informed that the number of people benefiting from digital banking has crossed 127 million,” the PM Office said in a statement.

Pakistan remains a cash-dominated market, with a significant share of transactions, particularly in the informal sector, conducted in cash.

In recent months, the State Bank of Pakistan has taken steps to promote the cashless economy, aiming to make financial transactions more traceable and curb tax evasion and corruption.

Pakistan has also introduced a cashless model at airports across the country under which only digital service providers can provide services to customers.


Pakistani on trial in US says Trump, Biden were possible targets in Iran-linked assassination plot

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Pakistani on trial in US says Trump, Biden were possible targets in Iran-linked assassination plot

  • Asif Merchant, who paid money to hitmen, tells court Iranian contact named three potential targets
  • The Pakistani national says he anticipated getting arrested, acted out of fear for his relatives in Iran

NEW YORK: The allegation sounded like the stuff of spy movies: A Pakistani businessman trying to hire hit men, even handing them $5,000 in cash, to kill a US politician on behalf of Iran ‘s powerful paramilitary Revolutionary Guard.

It was true, and potential targets of the 2024 scheme included now-President Donald Trump, then-President Joe Biden and former presidential candidate and ex-UN Ambassador Nikki Haley, the man told jurors at his attempted terrorism trial in New York on Wednesday. But he insisted his actions were driven by fear for loved ones in Iran, and he figured he’d be apprehended before anything came of the scheme.

“My family was under threat, and I had to do this,” the defendant, Asif Merchant, testified through an Urdu interpreter. “I was not wanting to do this so willingly.”

Merchant said he had anticipated getting arrested before anyone was killed, intended to cooperate with the US government and had hoped that would help him get a green card.

US authorities were, indeed, on to him — the supposed hit men he paid were actually undercover FBI agents — and he was arrested on July 12, 2024, a day before an unrelated attempt on Trump’s life in Butler, Pennsylvania. Merchant did sit for voluntary FBI interviews, but he ultimately ended up with a trial, not a cooperation deal.

“You traveled to the United States for the purpose of hiring Mafia members to kill a politician, correct?” Assistant US Attorney Nina Gupta asked during her turn questioning Merchant Wednesday in a Brooklyn federal court.

“That’s right,” Merchant replied, his demeanor as matter-of-fact as his testimony was unusual.

The trial is unfolding amid the less than week-old Iran war, which killed Iranian Supreme Leader Ayatollah Ali Khamenei in a strike that Trump summed up as “I got him before he got me.” Jurors are instructed to ignore news pertaining to the case.

The Iranian government has denied plotting to kill Trump or other US officials.

Merchant, 47, had a roughly 20-year banking career in Pakistan before getting involved in an array of businesses: clothing, car sales, banana exports, insulation imports. He openly has two families, one in Pakistan and the other in Iran — where, he said, he was introduced around the end of 2022 to a Revolutionary Guard intelligence operative. They initially spoke about getting involved in a hawala, an informal money transfer system, Merchant said.

Merchant testified that his periodic visits to the US for his garment business piqued the interest of his Revolutionary Guard contact, who trained him on countersurveillance techniques.

The US deems the Revolutionary Guard a “foreign terrorist organization.” Formally called the Islamic Revolutionary Guard Corps, the force has been prominent in Iran under Khamenei.

Merchant said the handler told him to seek US residents interested in working for Iran. Then came another assignment: Look for a criminal to arrange protests, steal things, do some money laundering, “and maybe have somebody murdered,” Merchant recalled.

“He did not tell me exactly who it is, but he told me — he named three people: Donald Trump, Joe Biden and Nikki Haley,” he added.

After US immigration agents pulled Merchant aside at the Houston airport in April 2024, searched his possessions and asked about his travels to Iran, he concluded that he was under surveillance. But still he researched Trump rally locations, sketched out a plot for a shooting at a political rally, lined up the supposed hit men and scrambled together $5,000 from a cousin to pay them a “token of appreciation.”

He even reported back to his Revolutionary Guard contact, sending observations — fake, Merchant said — tucked into a book that he shipped to Iran through a series of intermediaries.

Merchant said he “had no other option” than to play along because the handler had indicated that he knew who Merchant’s Iranian relatives were and where they lived.

In a court filing this week, prosecutors noted that Merchant didn’t seek out law enforcement to help with his purported predicament before he was arrested. He testified that he couldn’t turn to authorities because his handler had people watching him.

Prosecutors also said that in his FBI interviews, Merchant “neglected to mention any facts that could have supported” an argument that he acted under duress.

Merchant told jurors Wednesday that he didn’t think agents would believe his story, because their questions suggested “they think that I’m some type of super-spy.”

“And are you a super-spy?” defense lawyer Avraham Moskowitz asked.

“No,” Merchant said. “Absolutely not.”