The federal government aims to integrate all businesses in Islamabad into digital payment systems by December 31, 2026, while government departments will stop accepting cash after November 30.
ISLAMABAD: The federal government has set December 31, 2026, as the deadline to integrate all businesses and traders in Islamabad into digital payment systems as part of its plan to make the federal capital Pakistan’s first fully cashless city.
The decision was announced during a high-level meeting chaired by Minister of State for Interior Talal Chaudhry. Capital Development Authority (CDA) Chairman Sohail Ashraf, representatives of the banking sector and senior government officials attended the meeting.
Chaudhry said implementation of the Cashless Islamabad initiative was progressing rapidly under the directives of Prime Minister Shehbaz Sharif and Federal Interior Minister Mohsin Naqvi.
He said Naqvi had committed to making Islamabad not only Pakistan’s first cashless city but also the world’s first cashless capital.
Government Departments to Stop Accepting Cash From December 1
Under the implementation plan, departments of the Islamabad Capital Territory (ICT) administration and the CDA will stop accepting cash payments after November 30.
From December 1, all transactions involving these departments will be conducted through digital payment channels, marking a major step towards reducing cash-based transactions in government services.
The initiative is part of the federal government’s broader digital payment roadmap, which aims to reduce dependence on physical currency and expand electronic transactions across the country.
26,000 Merchants Already Integrated
According to Chaudhry, approximately 26,000 merchants in Islamabad have already been integrated into the digital payment system.
The government now intends to extend digital payment facilities to all commercial establishments in the capital by December 31, 2026.
The target covers businesses of all sizes, ranging from street vendors and pushcart operators to small retailers and large commercial establishments.
The minister emphasised that coordination among relevant institutions and consultation with stakeholders would be essential to achieving the deadline.
Islamabad had previously been identified as a target for a cashless transition by the end of 2026. The latest announcement outlines specific implementation deadlines for government departments and private businesses.
What the Cashless Initiative Means for Islamabad
The government expects the transition to improve financial transparency, strengthen tax monitoring and make financial transactions more efficient.
Banking sector representatives welcomed the initiative and assured the government of their cooperation in implementing the digital payment system.
However, the transition will require reliable digital payment infrastructure, uninterrupted internet connectivity and accessible payment facilities for businesses and consumers.
Smaller traders, street vendors and pushcart operators will also need practical support to adopt electronic payment methods, particularly those who have traditionally relied on cash transactions.
With government departments scheduled to stop accepting cash after November 30 and all businesses targeted for integration by December 31, authorities face the challenge of ensuring that digital payment facilities are widely available across Islamabad.
If implemented according to the announced timeline, the initiative would mark a significant step in the federal government’s efforts to expand digital payments and reduce reliance on cash.
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