The Federal Board of Revenue (FBR) has taken a significant step towards increasing revenue and fulfilling the International Monetary Fund (IMF) conditions. Under the new policy, business transactions will now be conducted primarily through debit and credit cards instead of cash. This move aims to document the business sector and enhance tax compliance across Pakistan.
Mandatory POS Installation for Large Retailers
In the first phase, all Tier-1 retailers and major businesses are required to install Point of Sale (POS) machines to facilitate digital transactions. These POS systems will be directly linked to the FBR’s computerized system to ensure transparency and proper documentation of sales. The initiative is expected to curb tax evasion and streamline the taxation process.
CCTV Monitoring of Transactions
To further strengthen oversight, the government has decided to monitor transactions through CCTV cameras. This step is aimed at preventing fraudulent activities and ensuring compliance with the new digital payment system.
Pakistan Moving Towards Digital Payments
Economic expert Dr. Khakan Najeeb highlighted that the objective of this initiative is to transition Pakistan towards a digital economy. He stated that many neighboring countries have already adopted digital payment methods, and Pakistan must follow the global trend to modernize its financial system.
Government Needs a Strong Stand for Implementation
Dr. Sajid Amin, another economic expert, emphasized that the government must take a firm stance to ensure successful implementation. He suggested that authorities should not present documentation and taxation as mere revenue collection measures. Instead, the focus should be on digital transformation and economic growth to reduce resistance from businesses.
Impact on Businesses and Consumers
The mandatory shift to debit and credit card payments is expected to bring several benefits, including increased transparency, reduced cash dependency, and improved financial documentation. However, businesses will need to adapt to digital payment systems, which may require initial investments in POS machines and software integration.
Conclusion
The implementation of this policy marks a crucial step towards financial transparency and digitalization in Pakistan. As the country aligns with global trends, businesses and consumers will need to embrace the shift towards cashless transactions. The success of this initiative will largely depend on government enforcement and public acceptance.
Stay tuned for further updates on Pakistan’s economic reforms and digital transformation strategies.
 has taken a significant step towards increasing revenue and fulfilling the International Monetary Fund (IMF) conditions. Under the new policy, business transactions will now be conducted primarily through debit and credit cards instead of cash. This move aims to document the business sector and enhance tax compliance across Pakistan.){kind=link}