Pakistan moves to strengthen digital finance and electronic transactions

Finance Minister Muhammad Aurangzeb has called for a more supportive regulatory framework to expand electronic transactions, improve

Finance Minister Muhammad Aurangzeb has called for a more supportive regulatory framework to expand electronic transactions, improve digital access to finance and accelerate Pakistan’s broader digital transformation.

The minister made these remarks during a meeting with Pakistan Digital Authority (PDA) Chairperson Dr Sohail Munir, where the two discussed digital finance, technology-driven economic activity and the development of Pakistan’s digital infrastructure. According to the Ministry of Finance, Aurangzeb stressed that existing regulations must evolve alongside technological advancements and new business models.

The meeting focused on creating an environment that recognises electronic transactions and encourages greater use of digital systems in trade and financial activities. The participants also examined ways to improve access to finance by expanding digital platforms and making financial procedures more efficient.

Aurangzeb particularly highlighted the need to simplify customer onboarding, strengthen data-sharing systems and improve the interoperability of financial information. Greater integration between banks and capital markets was also discussed, with the aim of making investment opportunities more accessible to ordinary citizens.

The minister said streamlined digital account-opening procedures could encourage wider participation in the capital market. Better connections between banking and capital-market systems, he added, could increase investor participation and improve access to investment opportunities.

The meeting also covered the importance of connecting government data systems. According to the ministry, better-integrated data could help policymakers improve planning, policy formulation and decision-making. The increased use of technology and artificial intelligence was identified as another opportunity to improve the efficiency of government and financial services.

Digital infrastructure was another key area of discussion. Aurangzeb emphasised that new initiatives should be practical, scalable and consistent with Pakistan’s wider digital transformation goals. Digital assets and tokenisation were also discussed, particularly their possible applications in real estate and other investment sectors. Participants stressed that appropriate regulations and supporting mechanisms would be necessary for the responsible adoption of emerging technologies.

Aurangzeb appreciated the work of the Pakistan Digital Authority and called for practical, high-impact initiatives that could improve efficiency, expand financial access and strengthen the country’s digital capabilities. He also emphasised continued coordination among relevant stakeholders to ensure steady progress in Pakistan’s digital economy.

Pakistan has already witnessed significant growth in digital payments. According to the State Bank of Pakistan, retail payments through the banking system reached 3.7 billion transactions during January-March 2026, representing a 9% increase from the previous quarter. Digital channels accounted for 92% of total retail payment volumes, processing around 3.4 billion transactions worth Rs68.3 trillion.

Mobile banking and digital wallet registrations exceeded 132 million by March 2026, rising 37% year-on-year. Nearly half of Pakistan’s 268 million bank accounts were connected to a mobile banking application or digital wallet.

Meanwhile, Raast processed 742 million transactions worth Rs23.27 trillion during the quarter, reflecting growing public acceptance of instant digital payments. Mobile wallets such as Easypaisa and JazzCash have also expanded access to basic financial services, particularly for people previously underserved by traditional banking.

Merchant adoption is growing as well. QR-enabled merchants more than tripled during FY25, rising from 516,000 in FY24 to more than 1.9 million by the end of 2025. Although digital adoption remains stronger in urban areas, the figures indicate that Pakistan’s digital financial ecosystem is expanding rapidly.