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ISLAMABAD: Prime Minister Shehbaz Sharif has formed three special sub-committees to promote a ¡°cashless¡± system in the country, his office said on Monday amid Islamabad¡¯s efforts to promote digital transactions to ensure more transparency in the national economy. 

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted using cash. Pakistan¡¯s central bank has taken steps in recent months to ensure a more cashless economy so that financial transactions are more traceable, reducing chances of tax evasion and corruption. 

Pakistan has witnessed significant growth in digital transactions in recent years. The country¡¯s central bank said in April that its instant payment system, Raast, has processed over 892 million transactions amounting to Rs20 trillion ($72 billion) since its launch in 2021. 

¡°Prime Minister Shehbaz Sharif chaired a meeting on promoting a cashless economy,¡± the Prime Minister¡¯s Office (PMO) said in a statement. ¡°He directed the formation of three committees: Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee and the Government Payments Committee.¡±

The press release said these special sub-committees would present recommendations on facilitating payments between the public and businesses, raise awareness about digital systems, activate the Pakistan Digital Authority and simplify transactions between the public and private sectors.

Sharif instructed officials to ensure digital transactions are made more affordable and easier for the public compared to cash ones. He further directed that the RAAST digital payment system be established across the federation and all Pakistani provinces.

¡°Establishing a digital transaction system is extremely important to bring transparency into the economy,¡± Sharif was quoted as saying. ¡°Around the world, developed nations and successful economies are prioritizing cashless systems.¡±

During a briefing given to the premier on the government¡¯s steps to promote a cashless economy, Sharif was told that 40 million users in total are benefiting from RAAST. The Pakistani premier was told that the federal government¡¯s entire financial transactions are being conducted via RAAST and the system is being expanded to provinces as well.

¡°The Pakistan Digital Authority has been established, and work is underway under its umbrella to promote a cashless economy,¡± the PMO said. 

The prime minister was also briefed that through the IT ministry¡¯s Smart Islamabad Pilot Project, the government is taking steps to make Islamabad the first cashless city in Pakistan. 

KARACHI: Pakistan¡¯s premier Shehbaz Sharif has summoned a meeting of the National Security Committee (NSC) today, Monday, an official of the Prime Minister House confirmed amid surging tensions in the Middle East following the United States¡¯ (US) involvement in the Iran-Israel military conflict. 

The NSC is the principal decision-making body on Pakistan¡¯s national security matters. Chaired by the prime minister, it comprises the ministers of defense, foreign affairs, finance, interior, information and senior military leadership. 

The meeting will take place a day after US targeted key Iranian nuclear facilities, joining Israel in its military conflict against Iran which began on June 13. Israel had launched strikes against Iran¡¯s nuclear sites and targeted its military leadership, saying its attack intended to prevent Tehran from developing nuclear weapons. Iran insists its nuclear program is for peaceful purposes. 

¡°This [NSC meeting] is to happen today,¡± the official confirmed to Arab News, adding that a statement about the meeting will be released as well. 

The development takes place a day after Pakistan¡¯s mission to the United Nations (UN) announced Islamabad, Beijing and Moscow will present a joint resolution at the UN Security Council calling for an immediate and unconditional ceasefire in the Middle East. 

As per a copy of the draft seen by Arab News, the resolution calls for an immediate and unconditional ceasefire and a diplomatic solution to the nuclear issue to reach an agreement acceptable to all parties that ¡°guarantees the exclusively peaceful nature of the Islamic Republic of Iran¡¯s nuclear program in exchange for complete lifting of all multilateral and unilateral sanctions.¡±

Pakistan has condemned the US strikes against Iran, with its UN Ambassador Asim Iftikhar Ahmad calling on the Security Council on Monday to act ¡°urgently and decisively,¡± warning against the danger posed to the populations of the region as the war intensifies. 

Experts warn Pakistan, which shares a 900-kilometer porous border with Iran in its southwestern region prone to separatist militancy and cross-border attacks, will face additional security and economic challenges due to the worsening conflict between Tehran and Tel Aviv. 

Financial analysts have warned that surging global oil prices due to the worsening conflict will cause economic setbacks for Pakistan, which relies on expensive fuel imports for its energy demands. Islamabad is grappling with a macroeconomic crisis amid a precarious balance of payment position. 

The crisis also raises questions about how Islamabad will navigate its delicate balancing act between Iran, other Gulf partners, and the US, which remains one of Pakistan¡¯s largest trading partners and a critical source of military and economic assistance. How Pakistan manages these competing ties amid an escalating regional conflict could test its diplomacy in the coming weeks.