Pakistan is planning to establish a centralized merchant database to improve real-time visibility of digital transactions as the government accelerates efforts to expand the country’s cashless economy.
The proposal was discussed during a high-level review meeting chaired by Minister of State for Finance Bilal Azhar Kayani at the Finance Division on September 2.
The meeting was held to prepare for the upcoming review of Prime Minister Shehbaz Sharif’s Cashless Initiative and assess progress on directives issued during the previous review.
Government Sets New Digital Payment Targets
Minister Kayani reviewed progress on the government’s digital finance agenda and discussed priorities for accelerating Pakistan’s transition toward a more digitally enabled financial system.
Officials reviewed digital payment performance during the previous year, including growth in active digital merchants, overall digital transaction volumes and the number of digital banking users.
The meeting also initiated preparations for setting annual performance targets for the national Cashless Dashboard for the current fiscal year.
New analytical indicators are also being considered to improve real-time monitoring, data transparency and assessment of progress under the government’s cashless economy strategy.
Centralized Merchant Database Proposed
A key proposal discussed at the meeting was the creation of a centralized merchant database.
The database is intended to provide better real-time visibility into digital transactions and support efforts to increase the adoption of digital payments among merchants across Pakistan.
Officials also discussed strategies to bring more businesses into the digital payment ecosystem and make digital transactions easier for consumers.
The meeting emphasized the need to simplify user journeys so citizens can make digital payments seamlessly across different services and payment touchpoints.
Government Payments to Be Digitized
The review also examined progress in digitizing government payments involving State-Owned Enterprises (SOEs) and autonomous bodies.
Officials reiterated the objective of fully digitizing payments made to vendors, employees and pensioners.
The move is expected to improve transparency in government financial transactions while reducing reliance on cash-based payment processes.
Push for a Documented and Inclusive Economy
Kayani reaffirmed the government’s commitment to Prime Minister Shehbaz Sharif’s vision of a transparent, documented and inclusive economy.
He said regular reviews would continue to monitor implementation and ensure that digital financial reforms are executed efficiently while making digital payments more convenient for citizens.
The meeting was attended by senior representatives from the Ministry of Finance, State Bank of Pakistan (SBP), National Database and Registration Authority (NADRA), Capital Development Authority (CDA), Ministry of IT and Telecommunication and private-sector stakeholders.
The proposed merchant database and expanded Cashless Dashboard form part of broader efforts to strengthen Pakistan’s digital payments infrastructure and increase the use of electronic transactions across the economy.
