Progress on Prime Minister Shehbaz Sharif’s ambitious plan to establish a cashless economy in Pakistan is encountering significant headwinds, with major resistance from the merchant community slowing the pace of digital adoption. A high-level briefing revealed that the government’s target of onboarding 2 million merchants onto the digital payment network by June 2026 is now looking increasingly challenging.
According to the official figures presented to the Prime Minister, fewer than 700,000 retailers across the country have so far been integrated into the digital payment system. Critically, only 39,000 merchants in the capital territory of Islamabad are currently active users, highlighting the low penetration rate.
The meeting confirmed that the ambitious cashless economy project is being overseen by Minister of State for Finance, Bilal Azhar Kayani. The briefing underscored a worrying trend: the ratio of currency in circulation has soared to 34 percent, with strong resistance from merchants to join the formal tax net posing a major obstacle for the government.
