5 days ago
- Business
- Business Recorder
Transparency, efficiency in SoEs: MoF developing cashless systems for G2P, P2G
ISLAMABAD: The Ministry of Finance (MoF) is reportedly developing a cashless payment mechanism for Government-to-Person (G2P) and Person-to-Government (P2G) to ensure transparency, efficiency in the State Owned Entities (SOEs), well informed sources told Business Recorder.
In this regard, a Sub-Committee under the chairmanship of Secretary Finance, Imdad Ullah Bosal has started consultations with all the concerned ministries including Ministry of Foreign Affairs, Ministry of Defence and Ministry of Defence Production. Chief Secretaries, Finance Secretaries of four provinces, AJK and Gilgil Baltistan, and State Bank of Pakistan (SBP) are also on the board.
Advisor to Prime Minister, Dr Syed Tauqeer Hussain Shah, has also informed all the ministries that Prime Minister had constituted a Steering Committee on Cashless Pakistan on June 22, 2025.
Digital payments should be made easier than cash: PM Shehbaz
One Sub-Committee, with Finance Division as lead, is working to develop a plan for digitizing government payments, both Government-to-Person (G2P) and Person-to-Government (P2G) so as to improve efficiency, transparency and accountability in financial transactions between the government and citizens.
According to Advisor to Prime Minister, in order to develop a comprehensive plan covering the entire spectrum of such transactions, there is a need to have a complete list of SOEs, autonomous bodies/ authorities/ organizations which carry out G2P and P2G transactions. Such transactions include but are not limited to payment of salaries, pension, vendor payments, subsidies and welfare payments as revenues of the government.
He asked all the ministries to submit the following information to CEO Karandaaz /Secretary to the Steering Committee on Cashless Pakistan ;(i) name of the Ministry ;(ii) name of the SOE/autonomous body/authority/organization ;(iii) head of the SOE/autonomous body/authority / organization ;(iv) SOE Focal Person name/ email/contact # (WhatsApp); (v) nature of G2P/P2G transaction tax/non tax, etc.) (salaries/pension/vendor ;(vi) frequency of transactions (daily/ annual) ;(vii) current payment mechanisms (cash, website, etc.) ;(viii) annual transaction volume (PKR semi-digital/ cash/ cheque);( ix) total number of beneficiaries in monthly/half-yearly/; and (x) any existing digitisation efforts and challenges faced in digital payments.
For the State Bank of Pakistan, the following revised target, as proposed by the Sub-Committee on digital payments innovation and adoption, were approved: (i) active digital commerce payment points include QR codes- 2 million from existing 0.5 million ;(ii) active merchant-1 transaction per month ;(iii) the number of mobile/ internet app and digital banking users to be increased to 120 million from 95 million during FY 26;(iv) the number of digital transactions will be enhanced by 100 per cent to 15 billion from existing 7.5 billion ; and (v) remittances to be credited in bank accounts/ wallets ( no cash payments)-100 per cent digital from existing 80 per cent.
Secretary Finance and Governor State Bank of Pakistan have been directed to revise annual subsidy allocation ceiling for supporting cashless transactions to Rs 3.5 billion ( 0.5 per cent incentive to banks for encouraging merchants on boarding on Raast). Banks may charge MDR of up to 0.25 per cent from merchants. Any amount in excess of this ceiling to be borne by the service providers.
The Government Payment Sub-Committee, in consultation with provincial governments and relevant stakeholders, shall review the proposed timelines for implementation of its proposed recommendations.
For submission of plans on State Owned Entities (SOEs) and P2G targets, revised timelines, reduced by at least one fourth will be shared during the next meeting of the committee.
Governor SBP has been directed to ensure that private sector members on the Board of Raast Payment Pakistan shall be renowned experts with a proven professional track record in the field of digital payments.
Copyright Business Recorder, 2025
