The federal government has decided to extend the subsidy on Raast QR payments to encourage more businesses to adopt digital payment methods under Prime Minister Shehbaz Sharif’s Cashless Pakistan Initiative.

Minister of State for Finance Bilal Azhar Kayani announced the decision during a meeting with banking executives at the Pakistan Banks Association (PBA) headquarters in Karachi on Friday.

Officials from the State Bank of Pakistan (SBP), Raast and Karandaaz also attended the meeting.

Kayani said the prime minister had approved the continuation of the subsidy on merchant discount rate (MDR) charges for QR transactions to sustain the growth of digital payments.

Government Pushes Digital Payments

The minister briefed banking representatives on progress under the Cashless Pakistan Initiative, including the growing use of digital payment channels and efforts to digitize government transactions.

He also discussed progress towards the targets set for fiscal year 2026 and stressed the need to maintain momentum in shifting payments from cash to digital platforms.

SBP to Prepare New Measures With Banks

Kayani asked the State Bank to consult chief digital officers of commercial banks, the CEO of Raast and Karandaaz to develop recommendations for the Prime Minister’s Cashless Committee.

The consultations will focus on improving the user experience of digital payment services, particularly QR transactions, and identifying measures to increase their adoption among businesses and consumers.

The Prime Minister’s Cashless Committee is also working on introducing new performance indicators and revising existing targets to speed up the country’s transition towards digital payments.

The minister urged banks to take a more active role in expanding digital payment facilities and encouraging businesses across Pakistan to adopt cashless transactions.