“This change is fueled by new technologies, supportive regulations, and a growing understanding of how a digitized economy can benefit everyone”
Pakistan is undergoing a major financial shift, moving rapidly from a cash-based system to one that embraces digital payments. This change is fueled by new technologies, supportive regulations, and a growing understanding of how a digitized economy can benefit everyone.
Recent figures from the State Bank of Pakistan (SBP) show clear progress. In late 2024 and early 2025, retail digital payment transactions jumped by 12% year-on-year, with mobile banking and e-wallet services leading the way. Digital platforms now handle an impressive 88% of all retail transactions by volume, indicating a significant change in how people and businesses operate. The SBP’s instant payment system, Raast, is key to this evolution, processing vast numbers of transactions and making interbank transfers much more efficient.
This momentum is no accident. The government, led by Prime Minister Shehbaz Sharif, is actively pushing for a cashless economy, setting bold targets and establishing committees to speed up the transition. Initiatives like simplified digital tax systems and expanded digital toll collections aim to formalize the economy and widen the tax base. The SBP, along with banks, fintech companies, and payment providers, are all working together to create an environment that encourages innovation and broader financial inclusion.
However, the path to a fully digital Pakistan faces obstacles. Many people, especially in rural areas, are still unbanked and rely on cash. Issues like limited infrastructure, gaps in digital literacy, and worries about cybersecurity and consumer protection must be addressed thoroughly. Building trust in digital platforms, ensuring different systems can work together, and making digital payments more appealing and affordable than cash are vital next steps.
Despite these hurdles, the future for digital payments in Pakistan looks very promising. The booming e-commerce sector, increasing smartphone use, and the government’s strong commitment to nurturing a digital ecosystem are powerful drivers. With ongoing investment in infrastructure, strong regulatory oversight, and focused efforts to boost digital literacy and ease public concerns, Pakistan can fully unlock its digital economy’s potential, leading to greater financial inclusion, transparency, and sustained economic growth for everyone.