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KARACHI: The Pakistan Airports Authority (PAA) 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 PAA said on Monday, amid Islamabad’s push for digitization to transform the 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.

In recent years, the State Bank of Pakistan (SBP) has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.

In a statement on Monday, the PAA said businesses and institutions at Pakistani airports will have to adopt the SBP-licensed digital system and those failing to do so will be liable to fines.

“This move will help in facilitating convenience, transparent transactions, and promoting a modern financial system for passengers,” it said. “Passengers will be able to pay in cash as well as adopt the new system, however, they are encouraged to adopt digital payment methods.”

The government in Pakistan, a country of over 240 million people, has long identified digitization as a key tool to improve governance, reduce corruption and expand the country’s narrow tax base.

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.

ISLAMABAD: Prime Minister Shehbaz Sharif met Saudi Crown Prince Mohammed bin Salman in Riyadh during which they discussed expanding the two countries’ “historic and time-tested” partnership in trade, investment and economic cooperation, the Pakistani premier said on Tuesday. 

Sharif met the Saudi crown prince on the sidelines of the Future Investment Initiative (FII) conference in Riyadh on Monday. The Pakistani prime minister arrived in Riyadh the same day leading a high-level delegation to attend the FII conference, which brings together prominent global investors and leaders. Discussions during the summit will revolve around global challenges and opportunities such as innovation, sustainability, economic inclusion and geopolitical shifts. 

The Pakistani prime minister and Crown Prince Mohammed bin Salman’s meeting was attended by senior cabinet members from both countries as well as Pakistani Army Chief Field Marshal Syed Asim Munir, according to a statement released by Sharif’s office on Monday night. 

“We reaffirmed the enduring strength of the Pakistan–�������� brotherly bonds and discussed ways to further expand this historic and time-tested partnership in trade, investment, and economic cooperation,” Sharif wrote on social media platform X. 

He lauded the Saudi crown prince for his “personal commitment and resolute support” in advancing the two countries’ shared vision for deeper collaboration and prosperity. 

Pakistan and �������� last month signed a historic strategic defense agreement, according to which an attack against one country will be treated as an attack against both, formalizing their decades-old security ties.

Pakistan and �������� have long enjoyed close ties but have sought to broaden cooperation in recent years. The two countries signed memorandums of understanding worth $2.8 billion across multiple sectors last year in an effort to deepen their economic, trade and investment partnership. 

Islamabad and Riyadh share longstanding ties rooted in faith, mutual respect and strategic cooperation, with �������� remaining Pakistan’s key political and economic partner. The Kingdom also hosts over 2.5 million Pakistani expatriates, the largest source of remittances for Pakistan’s $407 billion economy.