07-20-2026 
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Pakistan’s $41.6-billion remittance sector is set to undergo significant changes as Prime Minister Shehbaz Sharif ordered last week to have all remittances from overseas be fully digitized in support of the country’s transition into a cashless economy.
During a high-level meeting in Islamabad, the premier lauded authorities for successfully processing 92% of overseas inflows digitally in 2025, and rallied them to push it further to 100% this year.
Pakistan already has a solid digital public infrastructure (DPI) for remittances, having enacted the joint program Pakistan Remittance Initiative (PRI) in 2009 and integrating the national digital payment system, Raast, that was developed by the State Bank of Pakistan—both known to have largely contributed to the rise of digital transactions in recent years.
According to data presented by the Prime Minister’s Office, as reported by Gulf News, mobile banking users in Pakistan have grown from 95 million to 137 million, while around 2 million merchants are already accepting QR-code payments by the end of 2025, a 300% increase from the previous year.
Apart from the remittance and e-commerce industries, Pakistan’s unconditional cash transfer scheme—the Benazir Income Support Program (BISP)—also made the digital shift, with payments to around 10 million beneficiaries now made through digital wallets. Other state-backed agencies followed suit, including the National Database and Registration Authority (NADRA), whose payments are now 99% digitized.
These “significant achievements,” as described by the prime minister, showcase Pakistan’s demand for a more transparent digital economy.
A separate report from the local media outlet Dawn stated that relevant authorities are in the process of evaluating the aspects of the cashless economy that would aid the government in crafting policies in support of its vision. Recommendations from this assessment are expected to be released in November.
Meanwhile, Sharif called on authorities, businesses, and institutions to intensify their digital payment campaigns, particularly in remittances, noting that doing so would help promote sustainable economic growth and financial inclusion.
“Banks and financial institutions should play their full role in promoting a cashless economy,” he said.Sustaining growth amid conflict
While advancing Pakistan’s cashless economy is the primary driver of the digitization in the remittance sector, the government’s move would also help ensure the security of the industry amid geopolitical tensions.
Pakistan is among the countries affected by the dispute in the Middle East, and despite currently having strong remittance inflows, which are projected to increase to $44 billion in fiscal year 2026-2027, the South Asian state remains vulnerable to any disruptions.
According to an Arab News report, the Middle East conflict may weaken Pakistan’s remittance inflows, as employment opportunities for overseas Pakistani workers take a hit, affecting the funds they send.
“Pakistan, with limited fiscal space, high external financing needs and dependence on imported energy, is among the countries most vulnerable to a prolonged regional shock,” said Economic Affairs Ministry Secretary Muhammad Humair Karim.
While digitization is not a complete solution to offset the decline in remittance inflows, it can be an effective risk-mitigation strategy at a time when geopolitical conflicts challenge traditional remittance channels, enabling Pakistanis to send funds faster and more securely.
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