The Federal Board of Revenue (FBR) has become a major obstacle to the implementation of QR code-based payment systems in Pakistan, according to Deputy Governor of the State Bank of Pakistan (SBP), Dr. Inayat Hussain. Speaking to the Senate Standing Committee on Finance on Wednesday, he revealed that tax-related complications created by the FBR have discouraged merchants from adopting the technology, leaving Pakistan among the worst globally in QR code adoption.

Dr. Hussain explained that merchants are reluctant to integrate QR code payment systems due to the FBR’s practice of issuing tax notices after installation, which creates panic and deters businesses. He criticized the FBR’s focus on taxation over facilitation, stating that this approach has created significant barriers for merchants, including difficulties in completing forms and opening bank accounts. These challenges have slowed the widespread adoption of QR code-based payment systems, which are essential for modernizing payment transactions.

The deputy governor stressed the importance of installing QR code systems with every merchant to streamline payment processes and improve financial inclusion. In response, the Senate Finance Committee directed the Ministry of Finance and the SBP to submit a progress report within six months on measures taken to address these issues and promote the adoption of QR code technology.

Separately, Dr. Hussain clarified that the central bank would not introduce refinancing schemes for electric vehicles, stating that such programs could only be initiated through the Export-Import (Exim) Bank.