The federal government has directed the State Bank of Pakistan (SBP) to prepare a comprehensive report on the impact of the Rs3.5 billion subsidy allocated for Raast QR-based person-to-merchant (P2M) payments. The Economic Coordination Committee (ECC) instructed the central bank to submit its findings by July 2026 for further review.
According to officials, the Finance Division informed the ECC that the subsidy was introduced to ease the financial burden on merchants, encourage wider adoption of digital payments, and support Pakistan’s push toward a cashless economy.
Details of the Subsidy Scheme
Under the programme, banks, microfinance banks, and Electronic Money Institutions (EMIs) licensed by SBP are eligible for 0.5% of each Raast QR transaction, or Rs100 per transaction, whichever is lower. They may also collect up to 0.25% for onboarding and servicing merchants.
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The upcoming SBP report will evaluate the subsidy’s effectiveness, transaction volumes, consumer adoption rates, and propose modifications to enhance merchant participation. Recommendations could include expanding incentives, adjusting rates, or phasing out the scheme depending on results.
Supporting Digital Transformation
The ECC highlighted that earlier directives from the Prime Minister included reducing duties and taxes on payment acceptance devices and ensuring zero-cost merchant access to Raast QR services.
In line with these goals, SBP, in consultation with industry stakeholders, developed the Merchant Discount Rate (MDR) Subsidy Scheme to speed up the transition from cash-based transactions to digital retail payments.
