https://arab.news/92tc7
- Pakistan’s undocumented economy estimated at around 40 percent of its GDP, says Finance Adviser Khurram Schehzad
- Digitizing even modest portion of cash transactions could save Pakistan approximately $590 million annually, he says
KARACHI: Pakistan’s government is eyeing increasing the country’s annual digital transactions from 7.5 billion to 15 billion by June 2026, Adviser to the Finance Minister Khurram Schehzad said this week amid Islamabad’s push to promote a cashless 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 and promoting corruption.
Speaking at the 5th Pakistan Future of Retail Business Summit and Expo held in Karachi on Wednesday, Schehzad said the government’s Cashless Pakistan Initiative aimed to enhance accountability.
“Highlighting the key targets of the initiative, Schehzad said the number of monthly active Raast QR merchants will increase from 500,000 to 2 million by June 2026, annual digital transactions will double from 7.5 billion to 15 billion by the same period,” the Press Information Department (PID) said.
He said Islamabad also aimed to digitize 100 percent of government payments by December 2026, noting that a large share of transactions in Pakistan still involve cash.
The official added that Pakistan’s undocumented economy is estimated at around 40 percent of its gross domestic product, leading to inefficiencies and revenue leakages.
“Digitizing even a modest portion of cash transactions could save the country approximately Rs164 billion annually, while reducing the undocumented economy by 25 percent could unlock over Rs1 trillion in additional resources,” Schehzad noted.
Pakistan’s government has recently undertaken measures to promote digital transactions in the country. The Pakistan Airports Authority (PAA) announced on Tuesday that it 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 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.