Islamabad Set for Fully Cashless Rollout by End of 2026 Under Federal Plan

The federal government has set December 31, 2026, as the deadline for making Islamabad Pakistan's first fully cashless city, under a plan that will require every business and merchant in the capital to adopt digital payment systems. The timeline was finalized at a high-level review meeting of the Cashless Islamabad initiative chaired by Minister of State for Interior Talal Chaudhry, according to officials familiar with the deliberations.

Under the phased approach, departments operating under the Islamabad Capital Territory administration and the Capital Development Authority will stop accepting cash payments after November 30. This step will make digital transactions mandatory for government services ahead of the broader citywide rollout. The review meeting was attended by CDA Chairman Sohail Ashraf, senior government officials and representatives of the banking sector.

Chaudhry said the initiative was being accelerated on the directives of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi. The government's stated aim is not only to make Islamabad Pakistan's first cashless city but also to position it as the world's first cashless capital. Officials told the meeting that approximately 26,000 merchants in the city had already joined digital payment platforms.

The remaining businesses, including large commercial establishments, small traders and street vendors, must integrate into the system before the December 31 deadline. The minister said the shift would help reduce undocumented economic activity, improve financial transparency, strengthen tax monitoring and make commercial transactions more efficient. He also stressed the need for continued consultation with local businesses so that the transition proceeds smoothly across different segments of the economy.

Banking sector representatives welcomed the initiative and pledged technical and operational support to help the government meet its year-end target. The government is seeking to build a citywide digital payment ecosystem covering businesses of all sizes, alongside moving public sector departments away from cash transactions.

The plan places Islamabad at the centre of a wider push toward digital finance in Pakistan, with authorities framing the cashless drive as a step toward greater documentation of the economy and more efficient public service delivery.