The finance ministry says the Prime Minister, Shehbaz Sharif, has chosen to keep paying part of the fees that merchants incur when customers pay by Raast QR code, a cost known as the merchant discount rate.
Nothing has been said yet about a new rate or how long it will run. Bilal Azhar Kayani, Minister of State for Finance, shared the decision with bank bosses and their digital chiefs at a session on the cashless drive, which SBP officials, Raast’s chief executive and Karandaaz also attended.
The existing scheme comes from an SBP circular. It set aside Rs. 3.5 billion for Raast person-to-merchant QR transactions made between 1 September 2025 and 30 June 2026, paid at 0.5% of each transaction or Rs. 100, whichever is lower. The cost is split evenly between the shop’s bank and the customer’s bank, and banks may still charge a merchant up to 0.25% of the value for signing the shop up and servicing it. Banks are paid every quarter, and if claims pass the Rs. 3.5 billion ceiling, the rate is cut equally for every bank, so none is favoured. Banks must keep full records for audit.
Kayani told the bankers the prime minister wanted to keep up the pace of digital payments, and asked them to take a bigger part in the push. He summarised what the government has done so far, including digitising its own payments, and the targets set for the 2026 fiscal year. The Cashless Committee, he said, is sharpening its focus and writing new indicators and targets. He also invited the bankers to offer their own views and suggestions on getting better results from the push.
Next, Kayani has asked SBP to talk through the details with the banks’ digital heads, the Raast chief and Karandaaz, and return with firm recommendations for the Cashless Committee. The talks will look at easier everyday use of digital payments, QR included, and practical ways to spread them.
The meeting follows a run of cashless orders. Islamabad’s shops, hotels and petrol pumps have been told to go cashless by 31 December, and the capital’s civic offices stop taking cash from 30 November. Shops pushed towards QR will want to see the terms of the extension, in particular whether the 0.5% or Rs. 100 payment stays as it was and for how long it applies, since the circular’s period ended on 30 June 2026. The money goes to the regulated banks and payment firms involved, not to shops directly.
