Pakistan’s government is prioritizing the transition to a fully cashless economy as part of a broader strategy to modernize the country’s financial system, with Prime Minister Shehbaz Sharif elevating digitalization to a national economic priority, Minister of State for Finance and Railways Bilal Azhar Kayani said on Tuesday.
Addressing the Pakistan Banking Association (PBA) Summit 2026 in Karachi, Kayani said the government was working to establish a transparent, modern, and resilient financial framework. He emphasized that a strong banking sector remained critical to sustaining economic growth, strengthening macroeconomic stability, and attracting both domestic and foreign investment.
He said expanding access to financial services for the private sector remained one of the government’s foremost economic priorities. According to the minister, recent structural reforms in the financial sector are expected to stimulate business activity while reinforcing macroeconomic stability. He added that the government was modernizing the financial sector in line with international standards to create a more attractive investment climate, while the increasing integration of digital technologies into banking services was improving public access and convenience. He said the government remained committed to accelerating the implementation of measures needed to build a nationwide digital economy.
Kayani praised the contributions of private banks and other stakeholders, saying that policies developed through consultation and grounded in practical realities were more effective and sustainable. He noted that the banking industry was playing a central role in supporting the country’s long-term economic stability and development by fostering a stronger and more resilient financial ecosystem.
Highlighting reforms in the Benazir Income Support Programme (BISP), the minister said the programme’s allocation had exceeded 800 billion rupees this year and was directly benefiting more than 10 million families. He said the government had replaced older aid distribution mechanisms, under which beneficiaries often depended on intermediaries and faced unauthorized deductions, with digital wallets for every eligible woman. The new system, he added, functions like a standard bank account, enabling recipients to withdraw funds at their convenience or use their accounts to pay utility bills and conduct other financial transactions.
Referring to this year’s Prime Minister’s Ramadan Package, Kayani said the use of digital payment mechanisms had eliminated long queues at utility stores and flour distribution centres, describing the initiative as a significant milestone on the country’s path toward a cashless economy. He expressed confidence that continued cooperation among financial institutions, the private sector, and other stakeholders would help Pakistan achieve new milestones in its digital transformation and move closer to becoming a fully cashless economy.