Pakistan, Visa align on digitizing govt payments
Pakistan’s finance ministry and global payments firm Visa agreed to expand technical coordination on digitizing government payments and strengthening the country’s digital payments infrastructure.
The focus was on leveraging macroeconomic stabilization to accelerate cashless transactions and expand financial inclusion, according to the press release.
The development took shape during a meeting in Islamabad between Finance Minister Senator Muhammad Aurangzeb and a Visa delegation led by Tareq Muhmood, Regional President for Central Europe, Middle East and Africa.
The engagement matters as Pakistan seeks to widen its tax base, improve transparency in public finances, and reduce reliance on cash amid ongoing economic reforms.
The finance minister linked the push for digital payments to progress under the IMF-supported program and reforms spanning taxation, energy, state-owned enterprises, public debt management and privatization including steps to speed up asset sales.
He said the government is prioritizing end-to-end digitization of receipts and expenditures to improve efficiency and service delivery, with implementation being coordinated at the highest level.
Discussions centered on payment infrastructure and acceptance, including expansion into Tier-2 and Tier-3 cities, support for small and nano businesses, and tools such as QR codes and tap-to-phone.
Fraud prevention, cash displacement and competition across payment channels were also discussed, showed regulators’ focus on managing risk while encouraging innovation.
Visa shared feedback from banks and fintechs operating in Pakistan, citing growing interest in digital payments following macroeconomic stabilization.
Emerging areas such as remittances, e-commerce and tourism-related spending by overseas Pakistanis were reviewed, alongside regulated use cases for new technologies including blockchain and digital assets, particularly for remittances, public debt and government payments.
Pakistan is pursuing reforms to payment rails through the State Bank of Pakistan and plans to operationalize the Pakistan Digital Authority as part of a broader digital economy agenda.
Greater use of digital payments is seen as supportive of financial inclusion and documentation of the economy, with potential spillovers for revenue collection and growth.
Both sides agreed to continue technical engagement and knowledge-sharing with regulators to support Pakistan’s digital payments ecosystem as reforms progress.
The Visa delegation included senior regional and Pakistan-based executives.
