KARACHI: The State Bank of Pakistan (SBP) has announced that all government payments will be routed through Raast, the country’s instant payment system, by the end of the fiscal year 2025-26. The move aims to accelerate Pakistan’s shift toward a fully digital economy and reduce reliance on cash-based transactions.
Speaking at the launch of a study titled “Merchant Payments on Raast: Responsible Pricing for Impact and Inclusion”, SBP Deputy Governor Saleem Ullah said the central bank is working with federal and provincial departments to transition all public sector payments to Raast within the current fiscal cycle.
“Raast started with bulk payments focusing on government-to-public (G2P) transactions, and by the end of this fiscal year, all government payments will be routed through Raast,” he stated. The system already facilitates dividend disbursements and other government payments.
The study — developed by the United Nations-based Better Than Cash Alliance in collaboration with SBP and financial industry stakeholders — outlines strategies for responsible digitization of merchant payments and proposes a fee structure for person-to-merchant (P2M) transactions to support inclusive growth.
To encourage merchants to adopt Raast-based digital payments, the government has introduced a subsidy program worth PKR 3.5 billion for QR code transactions, covering the period from September 2025 to June 2026. The initiative is expected to make digital payments more affordable for small and medium enterprises.
Highlighting the rapid growth of Raast’s ecosystem, Saleem Ullah noted that while it initially took 360 days to process the first trillion rupees in person-to-person (P2P) transactions, the same volume is now achieved every nine days.
L. Nshuti Mbabazi, Managing Director of the Better Than Cash Alliance, said Pakistan has the potential to become a cashless economy within three years, given its strong digital infrastructure, regulatory support, and growing adoption of financial technology.
The SBP said the ongoing efforts to digitize government and merchant payments aim to build a secure, inclusive, and cost-effective digital payment ecosystem, ensuring convenience and transparency for citizens across Pakistan.
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