FBR Impedes QR Code Payment System Adoption in Pakistan, Says SBP Deputy Governor
The Federal Board of Revenue (FBR) has become a significant barrier to the adoption of QR code-based payment systems in Pakistan, according to Dr. Inayat Hussain, Deputy Governor of the State Bank of Pakistan (SBP). Speaking to the Senate Standing Committee on Finance, he highlighted that Pakistan is among the lowest-ranking countries globally in QR code adoption.
Merchants are hesitant to implement QR code payment systems due to complications with taxes and compliance requirements, primarily driven by FBR. The Deputy Governor revealed that FBR often sends notices to merchants who install QR codes, leading to unnecessary panic. This focus on taxation over facilitation has made it difficult for businesses to onboard the technology, fill out required forms, and open necessary bank accounts, significantly hindering the widespread adoption of QR payments.
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Dr. Hussain called for QR code systems to be installed at all merchant locations to streamline payment transactions. In response, the Finance Committee has instructed the Ministry of Finance and the State Bank to provide a progress report within six months on the actions taken to resolve these issues.
Additionally, the Deputy Governor clarified that the central bank would not launch refinancing schemes for electric vehicles, as such programs would need to be introduced via the Export-Import (Exim) Bank.
