Pakistan’s Cashless Drive Slows as Fewer Than 700,000 Retailers Adopt Digital Payments Despite PM Shehbaz Sharif’s Push

Although Prime Minister Shehbaz Sharif has been advocating for a shift toward a cashless economy, digital payment adoption in Pakistan remains limited, with fewer than 700,000 retailers currently using electronic transaction systems. In Islamabad alone, around 39,000 merchants have adopted digital payments, while the government’s target is to connect 2 million retailers by June next year.

The move is designed to cut down reliance on cash, improve tax collection efficiency, and promote wider financial inclusion. However, many traders are still reluctant to embrace the transition due to concerns about transaction costs, technical barriers, and regulatory oversight.

At the same time, digital banking usage in Pakistan has already surpassed official projections, showing a steady increase in online transactions and mobile banking activity. Government-to-person disbursements, such as payments under the Benazir Income Support Programme, are also shifting to digital platforms.

Ongoing initiatives aim to expand the use of digital wallets, encourage QR-based payments, and enhance financial literacy to make digital finance more accessible across urban and rural areas.