Islamabad is preparing for a major shift in how residents and businesses make payments, as the government moves towards a fully cashless system. Authorities have set December 31, 2026, as the deadline for connecting all merchants across the federal capital to digital payments.
The decision emerged during a meeting on the Cashless Capital project, chaired by State Minister for Interior Tallal Chaudry in Islamabad on Friday. The meeting brought together senior officials, banking representatives and other relevant stakeholders to review progress.
Chaudry stressed that consultation with all stakeholders would play an important role in implementing the initiative successfully. He also said the project was progressing rapidly under the special instructions of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi.
“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.
Cash Payments to End in Government Departments After November 30
One of the project’s most significant changes concerns payments to government departments. Chaudry announced that the Islamabad Capital Territory administration and Capital Development Authority would stop accepting cash payments after November 30.
“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 government also aims to bring every merchant in Islamabad into the digital payments network by the end of December.
“The target is to bring all merchants in Islamabad into the cashless system by Dec 31,” he said.
This transition will cover businesses of different sizes, rather than focusing exclusively on major commercial centres.
26,000 Merchants Already Connected to Digital Payments
Authorities have already connected 26,000 merchants in Islamabad to the digital payment system. However, the government intends to expand access further before the December deadline.
Chaudry said digital payment facilities would reach businesses and vendors across the capital.
“Digital payment facilities will be provided at every level, from street vendors to major business centres,” the state minister affirmed.
He also emphasised cooperation between government departments and other institutions to support the transition.
“All relevant institutions will work together to make Islamabad a modern digital city.”
According to the meeting’s details, CDA Chairman Sohail Ashraf attended alongside banking sector representatives and senior officials. Banking representatives welcomed the initiative and assured the government of their full cooperation.
Government Links Cashless Payments With Financial Transparency
The government considers digital transactions an important part of improving financial transparency and monitoring tax-related activity. Chaudry said the system would strengthen transparency, tax monitoring and the overall transaction process.
Prime Minister Shehbaz Sharif has also repeatedly called for digital payment systems across Pakistan. Last week, he directed authorities to prepare a “clear roadmap and time-bound targets” for establishing a nationwide digital payments system.
“Promoting a cashless economy is one of the government’s top priorities, with its positive results already beginning to emerge,” PM Shehbaz said.
Officials also briefed the prime minister on progress towards digitising payments across federal and provincial government institutions. They said work was advancing rapidly, with payments in “most institutions” expected to become fully digitised by December 2026.
Can Islamabad Complete the Cashless Transition by December?
The government now faces two important deadlines as it advances the Cashless Islamabad initiative. Cash payments at ICT administration and CDA departments will end after November 30. Meanwhile, authorities aim to connect all merchants by December 31.
With 26,000 merchants already connected, the next phase will focus on expanding digital payment access throughout the capital. The initiative also forms part of the government’s wider effort to introduce digital transactions across public institutions and the national economy.
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