Government drafts legal package to mandate digital payments at retail outlets

The government is in the process of drafting a legal package aimed at amending existing laws to mandate digital payment solutions at business and retail outlets as part of its push towards a cashless economy as reported by Express Tribune.

The report confirmed that the draft legal package proposes amendments to the Payment Systems and Electronic Fund Transfers Act, 2007, making it mandatory for businesses to offer at least one digital payment method, including QR code facilities. Local governments will be authorised to ensure compliance and enforcement.

The Capital Development Authority (CDA) and Islamabad Capital Territory (ICT) are revising bylaws to mandate digital payment acceptance at all retail outlets within their jurisdiction. Provincial governments are also expected to amend or enact new Digital Payment Acts to enforce the same requirement for businesses in their areas.

In the interim, local governments and regulatory authorities have been instructed to issue notifications for the installation of digital payment acceptance facilities at retail outlets.

Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) have begun printing Raast QR codes on consumer bills. Together, the two companies serve 10.74 million customers with annual collections of Rs384.91 billion. Over 21,400 consumers have paid their gas bills using Raast QR codes, contributing Rs51.8 million in payments.

Meanwhile, 10 out of 11 electricity distribution companies (DISCOs) have adopted Raast QR codes for bill payments, with Tesco also signing up. To date, over 27,900 consumers have paid electricity bills through Raast QR codes, amounting to Rs128 million in transactions. The total consumer base of all DISCOs is 35 million, with annual collections around Rs4 trillion.

The National Database and Registration Authority (NADRA) has introduced Raast QR payments at its service centres and through its mobile application. Currently, 949 NADRA centres are enabled for Raast QR payments, and the feature is integrated into the PAK ID app, which has 10.7 million users. As a result, cashless transactions at NADRA facilities have risen from 66% to 76% by October 2025.

Raast QR payments now account for 10% of all cashless transactions and 13% of daily applications processed through the PAK ID app. The total potential for digital collections through this system is estimated at Rs28.47 billion, with a consumer base of 27.2 million.

The CDA has also mandated the display of Raast QR codes at retail outlets in Islamabad, with 38,819 stores now enabled to accept payments. A Merchant Acquisition Committee has been established to oversee the process, with 12 participating banks facilitating the initiative.