Progress on Prime Minister Shehbaz Sharif’s cashless economy initiative has been slower than expected, with fewer than 700,000 retailers across the country connected to the digital payment system so far.
According to the briefing presented to the Prime Minister, only 39,000 traders in Islamabad are currently active on the system. The government has set a target to integrate 2 million retailers into the digital payment network by June 2026, but this goal appears challenging due to strong resistance from traders.
The meeting was informed that oversight of the cashless economy project has been assigned to Minister of State for Finance Bilal Azhar Kayani.
Officials reported that the circulation of cash in the economy has reached 34%, and traders’ resistance to entering the tax net remains one of the biggest obstacles for the government.
The Prime Minister directed relevant authorities to accelerate awareness campaigns and take steps to reduce cash transactions, especially in rural areas. He emphasized that a cashless economy is essential for transparency, reducing corruption, and improving governance.
The meeting was also briefed that in Islamabad, retail shops have been equipped with QR code payment options, and new business licenses have been linked to mandatory digital payment systems.
Statistics presented showed that in the last fiscal year, traders paid only Rs 166 billion in income tax, whereas salaried individuals paid Rs 606 billion.
Officials further stated that 10 million digital wallets under the Benazir Income Support Programme (BISP) are being activated to transfer financial assistance to deserving families through digital channels.
Prime Minister Shehbaz Sharif reiterated that the world is moving rapidly toward a digital economy, and Pakistan cannot afford to fall behind. He instructed that financial inclusion targets be further increased to ensure nationwide benefit from the transition toward a cashless system.
