Pakistan's push towards a cashless economy has accelerated sharply, with the number of merchants accepting digital payments rising by 300% in a year and mobile banking app users reaching 137 million, as Prime Minister Shehbaz Sharif ordered authorities to move all overseas remittances through digital channels.

Chairing a meeting on Tuesday, Sharif said the transition towards a cashless system would promote transparency and contribute to sustainable economic growth. The prime minister commended the economic team for progress made during the past year in shifting Pakistan's economy towards digital payments. One of the most conspicuous changes has been the expansion of mobile banking. The number of users increased from 95 million to 137 million within a year, a rise of 42 million. Sharif described that increase as a major achievement. The figures suggest that digital financial services are reaching a substantially larger pool of users as the government seeks to reduce reliance on cash.

Merchant adoption has expanded even faster. The meeting was informed that the number of businesses receiving digital payments increased by 300% over the past year. The prime minister directed authorities to strengthen awareness campaigns encouraging merchants to accept payments through QR codes. Remittances from another important part of the digitalisation drive. According to information presented at the meeting, 92% of remittances received during the past year were transferred through digital channels. Sharif directed that all overseas remittances should be processed digitally, extending the government's effort to move financial transactions away from conventional cash-based arrangements. The transformation is also reaching social-welfare payments. Funds for 10 million beneficiaries of the Benazir Income Support Programme are now being distributed through digital wallets.

The prime minister welcomed the shift of BISP payments to the digital system, describing the arrangement as transparent, efficient and more convenient for recipients. The combination of mobile banking, merchant payments, remittances and welfare transfers places digital transactions across several important parts of Pakistan's financial system. Yet the initiative is still being assessed. The meeting was told that third-party validation of the cashless economy programme is under way. A final report containing the assessment and recommendations is due to be submitted in November.

For the government, the case for moving away from cash rests on transparency as well as economic efficiency. The latest figures show rapid adoption: mobile banking users have climbed from 95 million to 137 million, merchant participation has risen by 300%, 92% of remittances are being transferred digitally and 10 million BISP recipients are receiving payments through digital wallets.

The next phase is more ambitious. By ordering all overseas remittances to pass through digital channels and seeking wider QR-code acceptance among merchants, the government is attempting to turn a rapid increase in digital-payment usage into a broader shift in how money moves through Pakistan's economy.