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November 13, 2026
Pakistan has set December 31, 2026, as the deadline to make Islamabad its first fully cashless city, with government departments ending cash payments from December 1. The initiative, part of PM Shehbaz Sharif’s digitalisation agenda, aims to expand digital payments, enhance financial transparency, and improve tax documentation. Over 26,000 merchants have been connected to digital payment systems, supported by the nationwide expansion of the State Bank’s Raast platform.
Pakistan is accelerating its transition towards a digital economy by setting December 31, 2026, as the deadline to make Islamabad the country’s first fully cashless city, with authorities expanding digital payment facilities across government departments and commercial establishments.
Minister of State for Interior Talal Chaudhry announced that government departments operating under the Islamabad Capital Territory administration and the Capital Development Authority (CDA) would stop accepting cash payments after November 30. From December 1, all payments to these departments will be processed through digital channels.
The initiative forms part of Prime Minister Shehbaz Sharif’s broader efforts to digitise Pakistan’s largely cash-dependent economy, improve financial transparency, and bring more businesses into the formal tax system.
Chaudhry said the government aims to connect all merchants in Islamabad to digital payment systems by December 31, covering roadside vendors, small retailers, and large commercial establishments. More than 26,000 merchants in the capital have already been connected to digital payment facilities.
He added that Interior Minister Mohsin Naqvi had committed to Prime Minister Shehbaz Sharif that Islamabad would become Pakistan’s first cashless city and the world’s first cashless capital.
According to Chaudhry, the transition is expected to improve financial transparency, strengthen tax monitoring, and make commercial transactions more efficient. Representatives of the banking sector have also assured the government of their support for the initiative.
The cashless city project builds on a nationwide digital payment initiative launched in June 2025 to promote financial inclusion, document economic activity, and reduce dependence on cash transactions.
The government reported that the number of active merchants accepting digital payments nationwide had increased from 500,000 to 2.03 million under the initiative, while the overall volume of digital transactions had doubled within a year.
The State Bank of Pakistan’s Raast instant payment system is playing a central role in this transition by enabling individuals and businesses to make immediate digital payments. Its QR-code facility allows customers to complete transactions by scanning codes through banking and payment applications.
At a meeting last week, Prime Minister Shehbaz Sharif also directed authorities to develop a roadmap for introducing a fully digital payment system across the country. He emphasised the need to ensure reliable internet connectivity and make digital services more accessible and convenient for consumers.
The initiative reflects Pakistan’s broader efforts to expand digital financial infrastructure, formalise economic transactions, and reduce reliance on cash-based payments.
