Pakistan is considering a centralized database to monitor more than two million digital merchants as digital transactions and banking users continue to expand.
Pakistan’s government has proposed creating a centralized database of digital merchants as the country’s digital payments ecosystem continues to expand rapidly, with annual transactions reaching 11.3 billion and active digital merchants surpassing two million.
The proposal was discussed Wednesday during a high-level review meeting chaired by Minister of State for Finance Bilal Azhar Kayani at the Finance Division. The meeting reviewed progress on the Cashless Pakistan Initiative ahead of an upcoming review by Prime Minister Shehbaz Sharif.
Officials from the State Bank of Pakistan, NADRA, the Capital Development Authority, the Ministry of IT and Telecommunication and private-sector representatives attended the meeting.
Digital Payments See Sharp Growth
According to the meeting’s readout, annual digital transactions increased from 6.9 billion to 11.3 billion over the past year. The number of active merchants accepting digital payments also rose from about 500,000 to more than two million during the same period.
Digital banking users have now crossed 135 million.
The expansion has been supported in part by the government’s Raast QR Code rollout, which has helped small retailers begin accepting digital payments without relying exclusively on cash.
With the merchant base growing fourfold in a year, the government is now considering a centralized system to improve visibility and monitoring across the rapidly expanding digital payments network.
Proposed Database Could Improve Monitoring
The proposed database would consolidate merchant information to strengthen monitoring of digital transactions and support wider adoption of digital payments.
The meeting did not specify which institution would manage the proposed system, how records maintained by banks, fintech companies and other payment providers would be integrated, or what data-sharing requirements would apply.
The meeting also proposed adding new analytical indicators to the national Cashless Dashboard to improve real-time monitoring and transparency.
Kayani directed officials to begin setting annual performance targets for the dashboard for the current fiscal year.
Government Payments Remain a Key Focus
Officials also reviewed progress in shifting payments by state-owned enterprises and autonomous bodies to digital channels. The government has been pursuing the broader digital payments agenda since the launch of the Cashless Pakistan Initiative in June 2025.
An earlier review indicated that about 75% of government-to-person payments at centralized and self-accounting entities were being processed digitally. The figure is a government-reported metric and has not been described in the meeting readout as independently audited.
Kayani also highlighted the recently launched Z-Wallet initiative, saying the government aims to provide citizens with at least one digital payment option for every government-to-person transaction, including tolls, motor vehicle licensing fees and utility bills.
Documentation and Financial Inclusion
The proposed merchant database could have implications beyond payment convenience. A centralized system could improve documentation of small businesses and give regulators greater visibility into digital transactions.
The government has framed the broader initiative around creating a “transparent, documented, and inclusive economy.” For smaller merchants, however, greater transaction visibility could also raise concerns about registration and potential tax exposure.
The meeting concluded with discussions on expanding merchant adoption and improving coordination among regulators, banks, fintech companies and other private-sector stakeholders.
Kayani said regular reviews would continue to maintain momentum on the cashless agenda.
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