Islamabad to become country's first fully cashless city by year-end

ISLAMABAD BUREAU —ISLAMABAD: The government has decided to make the federal capital the country’s first fully cashless city, setting Dec 31 as the deadline for the transition. The decision was taken at an important meeting on the Cashless Capital project chaired by State Minister for Interior Tallal Chaudry, in Islamabad on Friday, according to an official statement by the Ministry of Interior on X.

Speaking on the occasion, Chaudhry said consultation and suggestions from all stakeholders were important for the success of the project, the statement said. “The implementation of the project is under way at a fast pace on the special instructions of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi,” Chaudhry was quoted as saying.

Naqvi had promised the prime minister that Islamabad would be made Pakistan’s first cashless city and the world’s first cashless capital, the state minister added. “After Nov 30, no cash payment will be accepted in any department of the Islamabad Capital Territory administration and the Capital Development Authority (CDA),” Chaudhry stated. “The target is to bring all merchants in Islamabad into the cashless system by Dec 31,” he said.

He said the cashless system would improve financial transparency, tax monitoring and the transaction system, adding that 26,000 merchants in Islamabad had already been connected to the digital payments system. “Digital payment facilities will be provided at every level, from street vendors to major business centres,” the state minister affirmed. “All relevant institutions will work together to make Islamabad a modern digital city.” According to the statement, CDA Chairman Sohail Ashraf, representatives of the banking sector and other senior officials attended the meeting.

Representatives of the banking sector appreciated the government’s Cashless Islamabad initiative and assured full cooperation for its success, it added. The prime minister has repeatedly emphasised the need to implement digital transaction systems across the country, insisting that it is vital to bring transparency to the economy.

In a meeting last week, PM Shehbaz also directed authorities to prepare a “clear roadmap and time-bound targets” for establishing a 100 per cent digital payments system in the country. “Promoting a cashless economy is one of the government’s top priorities, with its positive results already beginning to emerge,” PM Shehbaz said.

He was also apprised that the work on the digitisation of payments in all federal and provincial government institutions was progressing rapidly, and payments in “most institutions” would be fully digitised by December 2026.