The federal government has decided to transform Islamabad into Pakistan’s first fully cashless city, setting December 31 as the deadline for the implementation of the initiative.
Minister of State for Interior Talal Chaudhry announced the decision while chairing a meeting in the federal capital to review progress on the Cashless Islamabad initiative.
The minister stressed that consultation with all relevant stakeholders and incorporating their suggestions would be essential for the successful implementation of the programme.
He announced that cash payments would no longer be accepted at any department of the Islamabad Capital Territory (ICT) administration or the Capital Development Authority (CDA) after November 30.
The government aims to bring all merchants and businesses operating in Islamabad into the digital payment system by December 31.
According to Talal Chaudhry, approximately 26,000 merchants in the federal capital have already been connected to the digital payment network.
He said the government was working to ensure that digital payment facilities were available at every level of commercial activity, ranging from street vendors and small shops to major business centres.
The initiative is aimed at encouraging digital transactions, reducing reliance on physical cash and promoting a more transparent and efficient payment system.
Global Shift Towards Digital Payments
Islamabad’s proposed transition reflects a broader international trend towards cashless economies, where digital transactions are increasingly becoming part of everyday life.
Nordic countries are among the global leaders in digital payment adoption. Sweden, in particular, has reported exceptionally low cash usage, with electronic payments widely accepted across businesses and public services.
Mainland China has also experienced a major shift towards digital transactions, largely driven by QR-code-based mobile payment platforms such as Alipay and WeChat Pay.
These services are extensively used for everyday purchases, restaurant bills, shopping and other commercial transactions.
As Pakistan moves towards digital payments, the Cashless Islamabad initiative could become a model for introducing similar systems in other major cities across the country.
