ISLAMABAD: The federal government has announced plans to transform Islamabad into Pakistan’s first fully cashless city by December 31, introducing a major shift towards digital payments across government offices, commercial markets and small businesses.
Under the initiative, government departments operating under the Islamabad administration and the Capital Development Authority (CDA) will stop accepting cash payments after November 30. The government has also set a target of connecting all traders, including street vendors and small business owners, with digital payment facilities by the end of December.
The announcement was made by Minister of State for Interior Talal Chaudhry while chairing a meeting to review progress on the government’s Cashless Islamabad initiative.
According to Chaudhry, no department under the Islamabad administration or CDA will be permitted to accept cash payments after November 30. The move is intended to encourage citizens to use digital channels for government-related transactions and reduce dependence on physical currency.
The government expects the transition to establish a more transparent and efficient payment system across the federal capital.
Chaudhry revealed that approximately 26,000 traders in Islamabad have already been connected to digital payment facilities.
However, the government intends to expand the initiative further by ensuring that businesses of every size can accept digital payments. The plan includes roadside vendors, small shopkeepers, retailers and major commercial centres.
The minister said that the authorities were taking necessary steps to make digital transactions accessible across different sectors of the city’s economy.
He also emphasised the importance of consulting all relevant stakeholders and considering their recommendations to ensure the successful implementation of the initiative.
Explaining the benefits of the initiative, Chaudhry said that shifting towards digital payments would improve financial transparency and strengthen the government’s ability to monitor taxable transactions.
He added that representatives of the banking sector had assured the government of their full cooperation in implementing the cashless payment system.
The involvement of financial institutions is expected to play an important role in expanding digital payment infrastructure and helping businesses adopt electronic transaction facilities.
Prime Minister Pushes Nationwide Cashless Economy Initiative
The development comes as the federal government intensifies efforts to promote a cashless economy across Pakistan.
Last week, Prime Minister Shehbaz Sharif chaired a meeting on digital payments and directed relevant authorities to develop a comprehensive roadmap with clear targets and deadlines for establishing a nationwide digital payment system.
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The prime minister also instructed officials to address problems faced by consumers while using digital payment services.
He stressed the need to improve internet connectivity across the country and ensure that ordinary citizens have easier access to digital technologies.
Furthermore, Sharif directed authorities to continue promoting the Raast QR Code payment system, which enables digital transactions between customers and merchants.
The government believes that expanding Raast QR Code facilities will contribute significantly to its broader vision of a cashless economy.
