Digitising economy top govt policy: PM
Prime Minister Shehbaz Sharif, Sunday, chaired a high-level meeting on the transition towards a cashless and digital economy and expressed satisfaction over the progress made so far.
The prime minister emphasised that the government is working on a priority basis to digitise the economy and shift financial transactions to a cashless system.
PM Shehbaz underscores digital economy push to enhance transparency, ease public access
He directed all chief secretaries to extend full cooperation with the federal government in expanding the Raast payment system to the district level.
During the meeting, officials briefed the prime minister on measures taken towards a cashless economy. It was informed that under the Pakistan Digital Public Infrastructure initiative, digital IDs will be introduced containing citizens' national identity card details, biometrics, and mobile phone numbers. These digital IDs will enable secure digital payments.
The briefing further highlighted that provincial governments have made significant progress in linking government-to-public and public-to-government payments with the Raast system.
On infrastructure development, it was noted that the Federal Development Authority has granted right-of-way for fiber connectivity, while discussions are underway with Pakistan Railways and the National Highways Authority to further expand digital infrastructure.
The meeting was attended by Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Information and Broadcasting Attaullah Tarar, Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, Federal Minister for Petroleum Ali Pervez Malik, Adviser to the Prime Minister Dr Tauqeer Shah, Minister of State for Finance and Railways Bilal Azhar Kayani, along with senior government officials
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Digitalisation: FBR's Rs200,000 cash cap puts pressure on retailers, e-commerce
The Federal Board of Revenue (FBR) has tightened documentation of the retail and e-commerce sectors by capping cash transactions at Rs200,000 applicable to both traditional markets and online Cash on Delivery (CoD) orders. This is likely to put pressure on retailers, consumers to turn towards a cashless economy. FBR sets Rs200,000 cash payment limit, e-commerce CoD orders Impact on digital payments By capping cash payments, the FBR is nudging both retailers and consumers towards digital channels (bank transfers, debit/credit cards, mobile wallets, Raast). One reason CoD dominates in Pakistan's e-commerce (over 80% of orders) is consumer distrust of online payments. The new cap could push platforms to build stronger trust in digital checkout. This is likely to lead to greater financial inclusion as small businesses and e-commerce platforms integrate digital payment systems. High-value shoppers who relied on CoD may now be pushed toward pre-payment or digital settlement, reducing dependency on cash. Impact on e-commerce Logistics and courier companies handling CoD will need to adjust systems to reject or split orders above Rs 200,000, which is likely to increase operational complexity. One reason CoD dominates in Pakistan's e-commerce (over 80% of orders) is consumer distrust of online payments. The new cap could push platforms to build stronger trust in digital checkout. Lower cash handling by couriers may even reduce theft, fraud and cash mismanagement. Taxing the digital frontier: Pakistan's bold move to tap e-commerce and online revenues This latest move aligns with International Monetary Fund (IMF) backed reforms to formalise the economy and increase tax compliance as digital payments are likely to create a trail of transactions that can be monitored and taxed. Similar restrictions have been enforced also in other countries. India, for instance, capped cash transactions above INR 200,000 in a day in 2017, a move that coincided with the country's demonetisation drive and spurred the adoption of payment platforms like UPI. Bangladesh, too, has set caps on cash payments for corporate expenses to encourage digital trails. Pakistan's measure mirrors these regional shifts, though adoption may be slower given the dominance of cash. If enforced effectively, the Rs200,000 limit could help accelerate Pakistan's transition toward a cash-lite economy, in line with IMF-backed reform commitments. Success, however, will hinge on whether retailers and consumers adapt smoothly - or resist the transition.
Business Recorder
6 hours ago
- Business Recorder
PM Shehbaz reviews relief efforts for flood-affectees in Pakistan's northern areas
Prime Minister Muhammad Shehbaz Sharif presided a high-level meeting in Islamabad on Monday to review ongoing relief operations for the victims of torrential rains and floods in Khyber Pakhtunkhwa, Gilgit-Baltistan, and Azad Jammu & Kashmir. During the meeting, the prime minister announced that the entire federal cabinet will donate one month's salary to support flood victims in Khyber Pakhtunkhwa. He directed federal institutions to intensify relief efforts in the affected districts of the province. 'In this hour of difficulty, there is no federal or provincial government — we must ensure full support and rehabilitation of the affected people,' said the prime minister, stressing that assisting fellow citizens in distress is a national duty. He further added: 'This is not a time for politics. It's a time for service and for healing the pain of the people.' 'Heavy monsoon rains' likely to batter Karachi, other parts of Sindh till Friday PM Shehbaz announced that the federal government will provide financial assistance under the PM Relief Package not only to the families of those who lost their lives but also to the injured and affected. The premier directed Minister for Kashmir and Gilgit-Baltistan Affairs Amir Muqam to oversee the distribution of relief goods and the recovery operations in the affected regions. 'Relevant federal ministers will personally supervise the restoration of electricity, water, roads, and other basic services. Whereas, all concerned ministers must personally visit affected areas in KP, AJK, and GB,' he said. The National Highway Authority (NHA) must prioritise restoring all routes for relief access without distinguishing between provincial and national highways. The Ministry of Communications, NHA, and Frontier Works Organization (FWO) must ensure the repair of roads and bridges. The Minister for Communications is directed to visit affected areas and directly monitor restoration efforts, the PM Office said in a statement. The Minister for Power is also instructed to inspect damaged regions and ensure power restoration on priority, it added. Meanwhile, the PMO said the National Disaster Management Authority (NDMA) has been directed to present a final assessment of damages immediately, submit a comprehensive plan for the distribution of relief items in Khyber Pakhtunkhwa. Possible torrential rains in Punjab: Punjab CM asks stakeholders to remain alert 'Until the last affected individual is helped and basic infrastructure is restored, federal ministers will remain on the ground,' the prime minister stated, adding all required resources could be received from the Ministry of Finance. The Ministry of Health has been directed to dispatch medicines and medical teams and establish health camps in the affected areas. The Benazir Income Support Programme (BISP) has also been instructed to mobilise support for the victims. At the conclusion of the meeting, the prime minister and attendees offered prayers for the martyrs of the floods and for the speedy recovery of the injured. The forum was briefed about the efforts of the NDMA and officials designated by the PM for relief works. According to the briefing, 456 relief camps have been established and 400 rescue operations conducted so far, with trucks carrying relief supplies being dispatched, including today. The prime minister ordered that the most affected areas should receive aid first on a priority basis. A preliminary estimate puts losses to public and private property at over Rs126 million. The NDMA presented updates on the supply of rations, tents, medicines, medical teams, and other relief items. The premier ordered further increases in these supplies. It was also reported that the monsoon will continue until the second week of September, with six major spells already occurring and two more expected, whose effects may last through the end of September. Heavy rains, floods claim 313 lives across KP Several ministers and officials provided updates about situation in different areas. Federal Minister for Kashmir and GB Affairs Muqam briefed on the situation in Swat. Minister for Power Sardar Awais Khan Leghari reported on overall KP situaion. Special Assistant Mubarak Zeb Khan updated on Bajaur. The NHA chairman gave an update from Malakand. The secretary communications briefed from Gilgit. Other ministers, including Sardar Muhammad Yousaf, Mian Muhammad Mueen Wattoo, and Dr Musadik Malik, also shared updates on relief efforts in line with the prime minister's directions. The meeting was attended by key cabinet members and officials including Khawaja Asif, Ahsan Iqbal, Musadik Malik, Ahad Cheema, Attaullah Tarar, Muqam, Leghari, Yousaf, Wattoo, Mubarak Zeb, NDMA Chairman Lt. Gen. Inam Haider Malik, and PM's Chief Coordinator Musharraf Zaidi, along with other senior officials.
Business Recorder
13 hours ago
- Business Recorder
Chinese CPEC IPPs press Pakistan govt for Rs475bn dues
ISLAMABAD: As the date of Prime Minister Shehbaz Sharif's visit to China draws closer, Chinese CPEC Independent Power Producers (IPPs) have mounted pressure on the government for clearance of their outstanding receivables, which currently stand at around Rs 475 billion, well-informed sources told Business Recorder. Chief Executive Officers (CEOs) of Chinese CPEC IPPs have been writing letters to government functionaries, with copies also shared with the Chinese Ambassador to Pakistan. The Ambassador, sources said, is actively engaging with senior Pakistani officials to finalize the Prime Minister's agenda for bilateral meetings with Chinese leadership. In a recent letter, Wang Dongfang, CEO of Port Qasim Electric Power Company (PQEPC), expressed deep concern over the growing delays in tariff payments by the Central Power Purchasing Agency-Guaranteed (CPPA-G). Debt re-profiling with Chinese IPPs: PD, FD likely to share implementation proposal According to Wang, under the Government of Pakistan's guidance, the 1,320 MW Port Qasim Coal-Fired Power Project—one of the flagship energy ventures under the China-Pakistan Economic Corridor (CPEC)—has consistently provided clean, reliable, and economical electricity to the national grid. 'While we highly appreciate the efforts of the Government of Pakistan and CPPA-G in arranging funds and making tariff payments to IPPs, the total outstanding amount due to PQEPC has reached Rs 81 billion ($286.94 million) as of July 31, 2025, with a delay period of over six months, which could further escalate,' the letter stated. The CEO cautioned that shareholders and sponsors of the project, including those from China and Qatar, have conveyed 'significant discontent' over the payment backlog and have requested urgent measures to reduce the outstanding amount. 'We would like to notify that the current dues entitle PQEPC to suspend plant operations under Section 9.10 of the PPA, without any liability for Liquidated Damages (LDs),' the CEO warned. PQEPC also highlighted that its Energy Purchase Price (EPP) tariff is comparatively more competitive than oil- and RLNG-based power plants. Suspension of operations, the CEO warned, would result in a 'lose-lose' outcome, which both sides must avoid through timely settlement of dues to ensure sustainable generation and prevent triggering defaults under Loan Agreements and the Government of Pakistan's Sovereign Guarantee. Concluding his letter, Wang urged the Finance Minister, Senator Muhammad Aurangzeb and Planning Minster, Ahsan Iqbal to take immediate notice of the 'critical situation' and coordinate with relevant authorities to arrange financial support for CPPA-G so that the outstanding dues could be cleared without further delay. When an official was contacted for comments on the correspondence of Chinese CPEC IPPs on payment of outstanding amounts, he responded that since the government does not have enough fiscal space, the payments will be made on the basis of availability of resources. However, energy payments are being made to them through Escrow Account. The government has earmarked Rs 5 billion per month to be paid to the Chinese CPEC IPPs. Copyright Business Recorder, 2025
