Govt to amend laws to enforce digital payment solutions

The government is drafting a comprehensive legal package to amend existing laws and empower local governments and provincial authorities to enforce the availability of digital payment solutions at business and retail outlets as part of its push towards a cashless economy.

According to sources in the Ministry of Finance, the draft legal package is being developed to amend the Payment Systems and Electronic Fund Transfers Act, 2007, to make it mandatory for all businesses to offer at least one digital mode of payment – including QR code facilities. The proposed amendments will also authorise local governments to ensure compliance and enforcement.

The bylaws and regulations of the Capital Development Authority (CDA) and Islamabad Capital Territory (ICT) are also being revised to mandate and enforce the availability of digital payment acceptance solutions at all business and retail outlets within their jurisdiction.

Similarly, the provincial governments will be required to amend their respective laws, rules, and regulations – or enact new Digital Payment Acts – to make the availability of digital payment systems mandatory for retailers and service providers operating in their areas.

In the interim, local governments and regulatory authorities have been directed to issue notifications mandating the installation of digital payment acceptance facilities at retail outlets under their jurisdiction.
Sources said that Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) have already started printing Raast QR codes on their consumer bills. The two utilities together serve 10.74 million customers, with total annual collections amounting to Rs384.91 billion. So far, more than 21,400 consumers have paid their gas bills through Raast QR codes, amounting to Rs51.8 million in payments.

Similarly, 10 out of 11 electricity distribution companies (DISCOs) have begun printing Raast QR codes on all consumer bills, except credit bills. The remaining DISCO – Tesco – has also signed the Raast agreement for QR enablement. To date, more than 27,900 consumers have paid their electricity bills using Raast QR codes, amounting to Rs128 million in transactions.

The total consumer base of all DISCOs stands at 35 million, with yearly collections of around Rs4 trillion. Training sessions for utility companies were conducted in collaboration with the State Bank of Pakistan (SBP) and Karandaaz on August 21, 2025.

The National Database and Registration Authority (NADRA) has launched Raast QR payments at its service centres and within its mobile application. A total of 949 NADRA centres nationwide have been enabled for Raast QR payments, and the feature has also been integrated into the PAK ID app, which currently has 10.7 million users.

Raast QR codes are now printed on QMatic service tokens to enable quick and easy payments. As a result, cashless transactions at NADRA facilities have increased significantly, rising from 66% to 76% by October 2025. From August 15 onwards, more than 161,334 transactions have been conducted through Raast.

Currently, Raast QR payments account for 10% of all cashless transactions and 13% of daily applications processed through the PAK ID mobile app, which is also integrated with Raast and other digital payment platforms. The total yearly potential for digital collections through this system is estimated at Rs28.47 billion, with a consumer base of approximately 27.2 million.

Islamabad has already taken the lead by mandating digital payments at retail shops. Under the CDA’s administered region, the Directorate of Municipal Administration has required all businesses operating under trade licences to offer digital payment options.

A Merchant Acquisition Committee has been established to periodically review progress and ensure implementation. The CDA has also mandated the display of Raast QR codes for digital payments at all retail outlets in Islamabad.

To date, a total of 38,819 retail stores have been enabled through partner banks to accept payments via Raast QR codes. The CDA has engaged multiple banks to facilitate this process, with 12 banks currently participating in the initiative.