Meta Title: Pakistan Plans Mandatory PayPak Cards for Government Employees, Subsidies & Public Payments
Meta Description: Pakistan plans to expand PayPak by making it mandatory for government salary accounts, subsidy programmes, and public payments while offering tax incentives and cashback rewards to boost digital payments.
Focus Keyword: PayPak Cards Pakistan
Slug: pakistan-paypak-cards-government-payments
Pakistan Pushes PayPak Cards to Replace Visa & Mastercard for Government Payments
ISLAMABAD: Pakistan is taking another major step toward strengthening its domestic digital payment system by promoting PayPak, the country’s national payment card network, as an alternative to international providers such as Visa and Mastercard.
According to proposals submitted by 1LINK to the State Bank of Pakistan (SBP), the government is considering making PayPak cards mandatory for government employees’ salary accounts, social welfare beneficiaries, subsidy programmes, and various public sector payment systems.
The move is aimed at reducing Pakistan’s reliance on foreign payment networks while encouraging wider adoption of locally processed digital transactions.
Mandatory PayPak Cards for Government Employees
Under the proposed plan, all government employees would receive salaries through PayPak-enabled bank accounts. The proposal also recommends issuing PayPak cards to recipients of government subsidies, social protection programmes, and users of public transportation payment systems.
If approved, millions of Pakistanis could become PayPak cardholders, significantly expanding the country’s domestic payment infrastructure.
Tax Incentives and Cashback to Increase Usage
To encourage consumers to use PayPak cards more frequently, 1LINK has proposed several financial incentives, including:
- Tax relief on PayPak Point-of-Sale (PoS) transactions.
- Tax incentives for PayPak e-commerce purchases.
- Cashback offers on eligible transactions.
- Loyalty rewards for regular users.
- Discounts on utility bill payments.
- Fuel purchase rewards.
- Public transport payment incentives.
- Special benefits for government-related payments.
These measures are intended to make PayPak cards more attractive than international payment options for everyday spending.
Government Offices to Accept PayPak
The proposal also recommends installing PayPak-compatible PoS terminals at all major government service centres, including:
- NADRA offices
- Excise and Taxation offices
- Passport offices
- Other public service departments
This would allow citizens to pay government fees directly using their PayPak cards.
SBP Expanding Pakistan’s Domestic Payment Network
The State Bank of Pakistan has been actively promoting domestic payment systems to improve financial inclusion and reduce dependence on international card networks.
According to the central bank, several initiatives have already been introduced, including:
- Co-badged PayPak cards that work both within Pakistan and internationally.
- Expanded PayPak support for online shopping.
- Merchant onboarding programmes.
- Promotional campaigns to increase public awareness.
- Enhanced digital payment infrastructure.
SBP says these initiatives have improved merchant acceptance, transaction volumes, and the overall functionality of the PayPak ecosystem.
Raast Digital Payments Continue Rapid Growth
The central bank also highlighted the rapid expansion of Raast, Pakistan’s instant payment system.
For the FY2025–26 budget, the government allocated Rs3.5 billion to support the Raast QR Code subsidy programme.
As a result, daily Person-to-Merchant (P2M) transactions increased dramatically—from around 60,000 transactions in June 2025 to nearly 1.1 million daily transactions by June 2026.
SBP says it will continue expanding QR-code payments and merchant onboarding to accelerate Pakistan’s transition toward a cashless digital economy.
What This Means for Pakistan
If these recommendations receive government approval, PayPak could become the primary payment card for millions of government employees and beneficiaries of public welfare programmes.
Combined with the rapid growth of Raast, the initiative could reduce transaction costs, strengthen Pakistan’s financial independence, and encourage greater adoption of digital payments across the country.
