ISLAMABAD: Specialised committees set up by the prime minister to promote a cashless economy have outlined ambitious national targets for the State Bank of Pakistan (SBP), aimed at accelerating the growth of digital financial services and fintech adoption across the country.
Under the PM’s Cashless Economy initiative, key goals include raising the number of active digital merchants to 2 million by the end of 2025-26, increasing mobile and internet banking users from the current 95 million to 120m within a year, and doubling annual digital payment transactions to 15 billion.
According to finance ministry sources, another primary target is routing 100pc of overseas remittances through bank accounts or mobile wallets, up from the current 80pc. This move seeks to eliminate cash payouts and boost transparency in remittance flows.
Following the directives of the committee chaired by the prime minister, the SBP is expected to play a pivotal role in expanding mobile banking services to all segments of society.
2m digital merchants and 15bn transactions targeted by FY26
Meanwhile, Minister for IT and Telecom Shaza Fatima said Pakistan, with over 143 million broadband users, has significant potential to transition to a cashless economy.
“Mobile wallets now outnumber traditional bank accounts, and the branchless banking infrastructure is robust,” she said, noting the government’s commitment to reducing reliance on physical currency and promoting digital payments. However, she acknowledged that among the four cellular mobile operators, only two — Jazz and Telenor — have established strong mobile wallet platforms.
Telenor’s Easypaisa, launched in 2009, was Pakistan’s first mobile wallet and has since evolved into the country’s first digital bank.
Farhan Hassan, Chief Digital Officer of Easypaisa Digital Bank, said the platform now offers a full range of banking services similar to those of traditional banks, helping to drive financial inclusion for millions of unbanked and underbanked Pakistanis. Easypaisa currently has around 18 million monthly active users, including 14 million mobile app users.
JazzCash, which began operations in 2012, remains the market leader with 21 million monthly active users and 15 million app users, making it the largest digital financial service provider in the country. Khayam Siddiqi, Head of Communication at JazzCash, attributed this growth to the ease of account opening, which requires no paperwork or branch visits. “Digital wallets offer a suite of services in one place — nano loans, savings, insurance, welfare disbursements, and everyday payments,” he said.
While JazzCash has gained traction in rural areas, Easypaisa enjoys a strong presence in urban centres. Despite occasional speculation surrounding its future amid the Telenor-PTCL merger, Easypaisa has retained a loyal user base.
The strength of mobile digital wallets lies in their simplicity — accounts are linked to mobile phone numbers, and transactions are facilitated by local shopkeepers acting as agents for cash-in and cash-out services. In contrast, Upaisa, the mobile wallet offered by Ufone, has a limited footprint, while Zong has yet to enter the digital market.
Published in Dawn, August 16th, 2025