Pakistan Approves Rs 3.5 Billion Subsidy to Promote Cashless Economy

The State Bank of Pakistan (SBP) has announced that the federal government has approved a targeted subsidy of Rs 3.5 billion to support the transition toward a cashless economy.

According to the SBP, the subsidy will be provided to regulated entities for onboarding merchants onto the Raast digital payment system and for facilitating Raast Person-to-Merchant (P2M) QR code transactions. The scheme will be effective from September 1, 2025, to June 30, 2026.

Under the plan, the government will cover 0.5% of the transaction value or Rs 100 per payment — whichever is lower — through the Raast P2M QR code. The subsidy will be disbursed on a quarterly basis.

Additionally, SBP-regulated entities will be allowed to charge merchants 0.25% of the transaction value as service fees.

The initiative reflects Pakistan’s broader push toward digital financial inclusion, aimed at reducing reliance on cash transactions and strengthening the formal economy.