Pakistan is preparing to strengthen its domestic digital payments system by promoting the wider use of PayPak, the country’s first homegrown payment card scheme, as part of efforts to reduce reliance on international networks such as Visa and Mastercard.
According to proposals submitted by 1LINK and shared by the State Bank of Pakistan (SBP), PayPak cards could become mandatory for government employees’ salary accounts, as well as for beneficiaries of social safety net programmes, government subsidies, and other public sector payments.
To encourage greater adoption, 1LINK has also proposed tax incentives for Point-of-Sale (PoS) and e-commerce transactions made through PayPak cards. Additional incentives under consideration include cashback offers, discounts, and loyalty rewards for utility bill payments, fuel purchases, public transport, and other government-related services.bus
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The proposal further recommends installing PayPak-compatible PoS terminals at public service centres, including NADRA offices, passport offices, and excise departments, making it easier for citizens to use the domestic payment network.
The initiative is part of the SBP’s broader strategy to strengthen Pakistan’s digital financial ecosystem by expanding the use of PayPak and Raast. The central bank also highlighted the rapid growth of Raast Person-to-Merchant (P2M) payments, supported by a Rs. 3.5 billion QR-code subsidy programme, which helped daily P2M transactions grow from around 60,000 in June 2025 to approximately 1.1 million by June 2026.
If implemented, the proposals could enhance financial inclusion, support local payment infrastructure, and reduce dependence on international payment networks.
