The State Bank of Pakistan has unveiled a new framework to accelerate digital payments at fuel stations, capping card transaction charges and directing banks to roll out Raast QR acceptance at petrol pumps across the country.
Under the new arrangements, the Merchant Discount Rate (MDR) for debit and credit card transactions at fuel stations will be capped at Rs1 per litre, while the Interchange Reimbursement Fee (IRF) will be limited to Rs0.20 per litre for purchases of fuel and related products. The special pricing will remain in effect until January 31, 2027, and will apply to all payment cards issued in Pakistan.
The central bank has also instructed commercial banks to actively work with fuel station operators to enable Raast QR-based payment acceptance, allowing customers to pay digitally through Pakistan’s instant payment system.
The move targets one of the country’s most cash-reliant sectors. More than 15,000 fuel stations operate nationwide, though point-of-sale terminals remain largely concentrated in major urban centres, leaving swathes of the country without card payment facilities.
Petroleum dealers say fuel stations currently pay roughly 0.8 percent in bank charges on card transactions — about Rs2.40 per litre — which has long discouraged both pumps and banks from expanding digital payment infrastructure.
The Pakistan Petroleum Dealers Association (PPDA) welcomed the SBP’s intervention. Chairman Malik Khuda Baksh said the lower transaction costs would spur wider adoption of digital payments at filling stations. “Although our demand was for zero percent charges, we appreciate this initiative and believe that, in consultation with the PPDA, the charges will be reduced further in the future,” he said.
The association had formally demanded a complete waiver of bank charges during a meeting with officials from the Oil and Gas Regulatory Authority (Ogra) and the government in the last week of July. Federal Minister for Petroleum Bilal Azhar Kayani had assured the PPDA that the matter would be addressed, and the chairman noted the minister has now honoured that commitment.
Digital payments analyst Abdus Samad Khan said the initiative would encourage fuel stations to install more POS terminals and QR payment facilities, improving convenience for consumers while reducing cash handling and associated security costs across the petroleum sector.
According to the latest SBP data, 68.3 million payment cards are currently in circulation in Pakistan, with card usage continuing to rise, particularly in the retail sector.
