Islamabad to Become Pakistan’s First Cashless City

According to the federal government, around 26,000 businesses in the capital have already been connected to the digital payment system. Meanwhile, Minister of State for Interior Talal Chaudhry has said that cash payments will no longer be accepted at the offices of the Capital Development Authority (CDA) and Islamabad administration after November 30.

The initiative aims to reduce the use of cash, improve transaction transparency, strengthen tax collection and modernise the country’s financial system.

According to State Bank of Pakistan data, a total of 3.4 billion transactions were carried out across the country through mobile banking, internet banking, ATMs, cards and QR codes between January and March 2026.

During the same period, around 150 million transactions were made through cards at retail outlets, while 32 million transactions were recorded for online purchases.

The digital payment system could help maintain a record of financial transactions and make business activities more transparent. Reducing reliance on cash could also support efforts to document the country’s financial system and bring more economic activity into the formal sector.

However, the transition could pose significant challenges for small shopkeepers and citizens who do not have smartphones, bank accounts or access to digital payment facilities.

Other concerns include internet disruptions, dependence on digital infrastructure and the risk of online fraud, all of which could affect the smooth implementation of the initiative.

This raises important questions: Are all residents and businesses in Islamabad ready for this transition? And will the government be able to make digital payment facilities accessible to ordinary citizens while addressing the challenges they may face?

The plan to turn Islamabad into a cashless city is more than just a change in payment methods. It represents an important step towards digitising Pakistan’s financial system. However, its success will depend on public accessibility, digital inclusion and building trust in the payment infrastructure.