In a major step to promote a cashless economy, the Govt of Pakistan has approved a Rs. 3.5 billion subsidy. The initiative aims to encourage merchants to adopt digital payments using Raast QR codes.
The State Bank of Pakistan (SBP) announced that the subsidy will cover Person-to-Merchant transactions from September 1, 2025, to June 30, 2026. Financial institutions will receive support at 0.5 percent of each transaction or Rs. 100, whichever is lower.
This scheme is part of the Prime Minister’s Cashless Economy program. It is designed to make digital payments easier and more attractive for merchants. Both acquiring and issuing banks will share the subsidy equally.
Regulated entities, including banks, microfinance institutions, payment service providers, and merchant service providers, must comply with the SBP’s rules. Only successful transactions posted in the Raast system will qualify for the subsidy.
The subsidy can be used for onboarding and servicing merchants. Institutions may charge up to 0.25 percent of the transaction value for these services. Payments will be released quarterly, with adjustments if the total subsidy exceeds the Rs. 3.5 billion annual limit.
Financial institutions are required to submit verified quarterly claims to Raast Payments Pakistan within five working days after each quarter ends. Any discrepancies will be communicated, and institutions must reconcile differences within another five days. If no response is received, the claimed amount will be considered accepted.
The SBP’s inspection teams may verify claims during regular on-site checks. Subsidy payments for September 2025 will be processed with claims for the quarter ending December 31, 2025. All payments will be released once the Finance Division sanctions the funds.
This initiative by the Govt marks a significant move toward accelerating Pakistan’s shift to a cashless economy. Analysts say it could boost digital payment adoption and improve financial inclusion across the country.
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