The Capital Development Authority (CDA) has announced plans to make Islamabad Pakistan’s first city where all municipal payments will be processed digitally.
The transition, which begins with services like taxes, utility bills, and parking fees, is aimed at improving transparency and streamlining public service delivery.
The initiative was unveiled during a meeting chaired by CDA Chairman Muhammad Ali Randhawa. “This shift to a cashless system will not only enhance transparency but also improve the speed and efficiency of public service delivery,” Randhawa said. “Our goal is to make Islamabad a truly digital capital – smart, efficient, and citizen-focused.”
Under the new system, residents will be able to pay for services using QR codes and mobile apps, eliminating the need to handle physical cash. The CDA is working with leading banks to build a secure, accessible digital payment ecosystem. The first phase of the rollout will focus on high-demand services and areas with heavy public footfall. If successful, the model will be scaled across the entire city.
“Imagine not having to stand in long lines or carry cash to pay your water bill. That’s the future we’re building,” said a senior CDA official.
Islamabad’s digital transition places it among a growing number of urban centers in Asia and the Middle East experimenting with smart governance models. By prioritizing digital payments, Pakistan is not only addressing inefficiencies in service delivery but also strengthening anti-corruption safeguards and promoting financial inclusion.
National Push for a Digital Economy
Islamabad’s cashless plan is part of a broader national push to digitize the economy. On July 28, Prime Minister Shehbaz Sharif directed federal authorities to consult with all provincial governments, including Gilgit-Baltistan and Azad Jammu and Kashmir, to ensure effective implementation of the digital transformation agenda.
Chairing a weekly review meeting, the Prime Minister emphasized cross-government cooperation and regular consultation with stakeholders. He also reviewed progress on key institutional developments, including the establishment of the National Digital Commission and the Pakistan Digital Authority (PDA). The appointment of PDA leadership is nearing completion, while the Merchant Onboarding Framework for digital payments officially launched on July 25.
Key federal ministers, provincial chief secretaries, and Islamabad’s chief commissioner participated in the meeting, highlighting the central role of digital payments in Pakistan’s governance strategy.
New Committees to drive National Digital Strategy
To accelerate the transition to a cashless economy, the Prime Minister in June 2025 approved the formation of three specialized committees: the Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee, and the Government Payments Committee.
These committees are tasked with developing practical solutions to expand digital payment adoption, support digital literacy, and integrate digital infrastructure into both public and private sector transactions. The Prime Minister also called for expanding the use of RAAST, Pakistan’s instant digital payment platform, across all provinces and federal departments.
He stressed that digital payments must be more affordable and accessible than cash to achieve mass adoption.
BISP embraces digital disbursements
Parallel efforts are also underway to digitize social protection programs. The Benazir Income Support Programme (BISP) is enhancing transparency by integrating digital payment systems into its disbursement mechanisms.
“This is not just a policy intervention, it’s a national priority,” said Minister of State for Finance and Head of the Prime Minister’s Delivery Unit Bilal Azhar Kayani during the July meeting. He pointed to the successful mobile wallet rollout for the PM’s Ramzan Package as a model for future programs.
Senator Rubina Khalid, Chairperson of BISP, also attended the session, signaling strong institutional backing for digitizing welfare payments.