PM Orders Full Digitisation of Remittances to Boost Cashless Economy

Prime Minister Shehbaz Sharif on Tuesday directed authorities in Islamabad to move overseas remittances onto a fully digital system as part of the government’s broader push toward a cashless economy. The directive was issued during a meeting focused on digital payments, financial transparency and the expansion of electronic transaction channels across Pakistan.

The move places one of Pakistan’s most important foreign-exchange lifelines at the centre of the government’s digital reform agenda. Remittances sent by overseas Pakistanis support millions of households, help stabilise external accounts and remain a crucial source of foreign currency for the national economy.

Officials at the meeting reviewed progress on cashless transactions and merchant adoption of QR-code payments. The prime minister also called for stronger awareness campaigns so that shopkeepers, service providers and small businesses are encouraged to accept digital payments rather than relying mainly on cash.

According to the Prime Minister’s Office, Shehbaz Sharif instructed that remittances from abroad should be digitised completely. He also praised the economic team for progress made during the past year and noted the sharp rise in active merchants using QR-code payment systems.

The government says a shift toward digital payments can improve transparency, reduce undocumented cash flows and make transactions easier to track. For remittances, the reform is expected to encourage overseas Pakistanis to use formal channels, including banks, exchange companies, mobile wallets and regulated financial platforms.

Pakistan has spent recent years trying to expand digital finance through mobile banking, instant payment systems and fintech-led services. However, cash continues to dominate daily commerce, especially in small markets, rural areas and informal business networks where documentation remains limited and digital adoption is uneven.

A fully digital remittance system could also help strengthen compliance against informal money transfer networks. Authorities have long sought to discourage hundi and hawala channels, arguing that formal inflows improve financial monitoring, support reserves and protect families from unregulated transfer risks.

The wider impact may be felt beyond overseas transfers. If QR payments and digital merchant systems grow further, small businesses could build transaction records, improve access to formal credit and become part of the documented economy. That would support policy planning, financial inclusion and potentially broaden the tax base over time.

The next phase will depend on coordination between the federal government, the State Bank of Pakistan, banks, exchange companies, fintech platforms and overseas missions. Implementation will require reliable systems, low transaction costs, strong cybersecurity and public confidence so that digital remittances become easier, safer and more attractive than cash-based alternatives.