Digital Payment System Now Mandatory at All Shops Across Pakistan

Under the Cashless Pakistan Program, Pakistan has made it mandatory that all the retailers use digital payment options. Minister Bilal Azhar Kiyani confirms that each shop should have QR codes or POS systems to decrease the money usage. This transition aims to catalogue the economy, to which subsidies and tax rebates can be made to facilitate the transition of the merchants by June 2026.

The government launched the Cashless Pakistan Program to tackle the country’s high currency-in-circulation rate. Officials want to bring more people into the documented economy. Minister of State for Finance Bilal Azhar Kiyani recently clarified that every retail outlet must provide at least one digital payment method. While merchants can use POS machines, the state is pushing QR code–based systems because they cost almost nothing to set up.

The government set a final “Cashless Economy” deadline for June 2026. Right now, the Prime Minister aims to increase active digital merchants from 700,000 to 2 million.

• July 2026: All government departments will stop accepting cash for taxes and utilities.
• Social Safety: 10 million BISP beneficiaries are switching to digital wallets to prevent fraud.

Incentives for Digital Payments in Pakistan

The Ministry of Finance and the State Bank of Pakistan (SBP) introduced a Rs 3.6 billion technology subsidy. This fund helps small retailers afford digital infrastructure. Furthermore, the government capped the Merchant Discount Rate (MDR). This ensures that processing a digital transaction costs less than handling physical cash.

If a business fails to display a digital payment option, they face heavy fines. Under current digital tax reforms, large entities could pay up to Rs 3,000,000 in penalties. Smaller retailers currently have a “grace period,” but the pressure to digitize is growing. The government is focusing first on the tobacco and fuel sectors to stop tax evasion.