Pakistan’s digital transformation: SBP plans to route govt payments through Raast

KARACHI: In a major push to digitize financial transactions, the State Bank of Pakistan (SBP) plans to route all government payments through Raast, Pakistan’s instant payment system, by the end of the current fiscal year 2025-26.

While speaking at the launch of a study titled “Merchant Payments on RAAST: Responsible Pricing for Impact and Inclusion,” Saleem Ullah deputy governor SBP said that Raast is one of the most significant initiatives undertaken by the SBP and become one of the most important digital platforms in the country.

The study report was prepared by United Nations-based Better Than Cash Alliance in consultation with the SBP, financial service providers, and industry stakeholders, highlights key enablers for the responsible digitization of merchant payments in Pakistan. The study recommends a fee to be paid to merchants on P2M transactions on Raast.

Rs3.5bn subsidy approved for Raast Person-to-Merchant QR payments

“We began Raast with bulk payments, focusing on government-to-public (G2P) transactions and our plan is that by the end of this fiscal year, all government payments will be routed through Raast”, Deputy Governor SBP said.

Initially, the SBP has pushed the government departments to adopt digital payments. Now, the response is much stronger and now the bulk payments facility not only brought G2P payments to Raast, but also enabled dividend payments and other disbursements, he added.

Saleem Ullah, further said that the government has announced subsidy for merchants in Raast to share their cost and encourage them to join the digital payment platform. The subsidy programme for person-to-merchant/P2M QR Code based transactions is not limited only to the ongoing fiscal year (FY26), but this is a three-year programme. The government has already allocated Rs3.5 billion subsidy for September 2025 to June 2026 about a week ago.

The ultimate goal is to win the war against cash and that can only be achieved through partnerships and collaborations among stakeholders. This will help accelerate digitalization of the economy and expedite inclusive growth, he said.

The SBP later introduced the P2P facility, which has proven to be a major success. For context, the first trillion rupees in transactions took 360 days to process, but today the same volume is achieved every nine days, he informed.

On the occasion, L Nshuti Mbabazi Managing Director Better Than Cash Alliance, said that Pakistan may go cashless within the next three years.”Pakistan has everything required to go cashless in less than three years,” she added. “You have everything. The bank present here shows that appetite. Infrastructure, the connectivity to get it going, I am sure when the business case is making sense infrastructure investors will invest.”

She urged the regulator and the government to make effective policies which build an ecosystem which leaves no one behind and drives financial inclusions and they mobilize trillions of cash in the economy.

She said RAAST is prioritizing the needs of micro and small businesses in Pakistan first to design responsible solutions to serve them. Pakistan’s goal of becoming an economy where digital payments are more convenient than cash was well within reach. “By building end-to-end digital payment experiences that benefit every citizen and resident, and by ensuring that recourse is clear, quick, and responsive, this ambition can be achieved in no time,” she noted.

The report supports policymakers and providers in designing merchant solutions for small businesses and long-term ecosystem viability at the right price point to support the attainment of the State Bank of Pakistan’s digital financial inclusion goals.

Copyright Business Recorder, 2025