Pakistan Tightens Digital Payment Tracking, Eyes Tax Reforms

Pakistan is reviewing definitions for active digital payment users and merchants while seeking tax reform proposals to accelerate the Cashless Pakistan initiative, following a fourfold increase in merchants accepting electronic payments during the last fiscal year.

Pakistan’s federal government is planning to refine how digital payment adoption is measured and explore tax policy reforms to accelerate the Prime Minister’s Cashless Pakistan initiative. The decisions were taken during a high-level meeting chaired by Minister of State for Railways and Finance Bilal Azhar Kayani at the Finance Division on October 13, 2026.

According to Profit and PhoneWorld , the committee agreed to review definitions for active app users, active merchants and unique digital payment users to ensure that the government’s Cashless Pakistan dashboard reflects more accurate and reliable data. The review will help authorities distinguish between registered users, active participants and unique individuals using digital payment channels.

The meeting focused on three key indicators: the number of active and unique digital payment users, annual digital transaction volumes and the number of merchants actively accepting electronic payments. Participants examined existing measurement methods and discussed how usage, activity and unique users should be defined.

Kayani also directed private-sector representatives to prepare recommendations on tax policy reforms that could encourage wider adoption of digital payments. The proposals are expected to support the next phase of the initiative by addressing barriers to electronic transactions and improving incentives for businesses and consumers.

The meeting was informed that the number of merchants accepting digital payments had increased fourfold during the last fiscal year, reflecting the expansion of Pakistan’s digital payment infrastructure.

Public-sector institutions have also made progress. The National Database and Registration Authority (NADRA) has digitised 99% of payments at its service centres nationwide, while passport centres have been equipped to accept digital payments. The government has also achieved approximately 75% digital payment acceptance across centralised and self-accounting entities.

Kayani emphasised the importance of accurate, validated and non-duplicated information on the Cashless Pakistan dashboard. Reliable data, he said, is essential to measure progress consistently and transparently.

The government says the initiative aims to “improve public convenience, strengthen transparency and accelerate the documentation of economic activity.” Wider digital payment adoption could also help bring more transactions into the documented economy and improve financial inclusion.

The meeting included representatives from the Finance Division, State Bank of Pakistan, Ministry of IT and Telecommunication, NADRA and Pakistan Digital Authority. Private-sector participants included the Pakistan Banking Association, Easypaisa Digital Bank, JazzCash, Bank Alfalah, JS Bank and Karandaaz Pakistan.

The latest decisions signal a shift towards more precise performance measurement and policy coordination as Pakistan seeks to expand digital transactions. The proposed tax reforms and clearer definitions will help determine how progress is tracked and which measures may encourage broader adoption of cashless payments.

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