Digital remittances in Pakistan are the focus of a major new push from the top. Prime Minister Shehbaz Sharif chaired a high-level meeting on July 14, 2026, and gave a clear order: every rupee sent home by overseas Pakistanis must travel through a digital channel. No more hawala. No more cash couriers. The directive sets the stage for a fundamental shift in how Pakistan’s largest source of foreign exchange actually works.
Where Pakistan Stands on Digital Remittances Right Now
The numbers presented at the meeting were striking. Officials told the prime minister that 92% of overseas remittances received between July 2025 and June 2026 had already been transferred through digital channels. During the same period, Pakistan recorded 11.9 billion digital transactions, while the number of mobile banking application users increased from 95 million to 137 million.
Those are not small numbers. Workers’ remittances are seen as the single most critical stabilising force for Pakistan’s external sector, with inflows reaching a record $41.6 billion in the last fiscal year. Getting even that remaining 8% of flows off informal channels and into the formal system would add billions more in traceable, verifiable foreign exchange.
The SBP governor noted that the share of home remittances credited through digital channels rose from around 80% to 92% over the year, a 12 percentage point jump in 12 months. The direction is clear. The question is how fast that last 8% can be captured.
What the PM Actually Directed Banks and Institutions to Do
PM Shehbaz directed the relevant authorities to ensure that 100% of remittances are received digitally, while urging banks and financial institutions to play a more proactive role in accelerating the country’s transition towards a cashless economy.
Officials said the Pakistan Banks’ Association has already assigned digital payment targets to member banks, including greater promotion of the Raast instant payment system, Pakistan’s national digital payment platform. Raast is the backbone here. It is a free, instant payment rail run by the State Bank of Pakistan that allows bank-to-bank and wallet transfers in seconds.
The prime minister also praised the economic team for increasing the number of active merchants using QR code-based digital payments by 300% within a year. Officials said the number of merchants receiving digital payments surged by 300%, reaching 2.003 million. That merchant network is directly relevant to remittances: when a family in Lahore or Multan receives money digitally, they need local digital infrastructure to actually spend it without cashing out.
Government Payments Are Already Almost Fully Digital
The meeting also showed how far public-sector digitisation has come. Officials told the meeting that 99% of payments made to NADRA are now processed digitally, while the share of cash transactions at NADRA has dropped from 71% to just 1%.
PM Shehbaz also praised the transition of payments under the Benazir Income Support Programme (BISP) to digital wallets, saying the move had made disbursements more transparent, faster and easier for beneficiaries. All payments to 10 million BISP beneficiaries are now being made through digital wallets. This matters for remittances because many lower-income families who receive money from abroad are also BISP recipients. Bringing them onto digital wallets for one type of payment naturally lowers the barrier for receiving remittances the same way.
Roshan Digital Accounts and the Fintech Opportunity
Last month, the government expanded its Roshan Digital Account scheme, originally launched for overseas Pakistanis, to allow foreign nationals and investors to participate. This is a significant opening. Broadening the RDA framework means more channels, more competition among financial institutions, and potentially better rates for senders.
For fintechs and digital wallets operating in Pakistan, the 100% digital remittances target is a direct growth opportunity. Platforms that make it easy to receive international transfers into a local wallet stand to gain the most. If you are new to digital wallets, our guide on how to open a SadaPay account in Pakistan walks you through one of the most popular options step by step.
The broader digital economy story connects here too. Pakistan’s IT exports hit a record $4.6 billion in FY26, and remittances from tech workers abroad are a growing slice of the total inflow. Getting those flows on formal digital rails benefits both the sender and the country’s foreign exchange position.
What the Remaining 8% Tells Us
The 8% of remittances still flowing outside digital channels is not trivial. At $41.6 billion total, that gap represents roughly $3.3 billion a year moving through informal or semi-formal channels. Some of this is deliberate, hawala networks often offer slightly better exchange rates and zero documentation. Some of it is access: not everyone sending money from Gulf countries, the UK, or the US has a bank account or uses a regulated money transfer app.
The government’s approach to closing this gap relies on two levers. First, making digital channels cheaper and more convenient than informal ones. Second, awareness campaigns. The prime minister ordered officials to strengthen awareness campaigns encouraging merchants to adopt QR code-based payments and ensure that remittances from abroad become 100% digital.
According to the PMO, a third-party validation of the cashless economy initiative is under way, with a final report and recommendations expected in November 2026. That report will be the real test. If it confirms the 11.9 billion transaction figure and the 92% remittance digitisation rate independently, Pakistan will have a credible base to build the next phase of its cashless push.
Frequently Asked Questions
What did PM Shehbaz actually order about remittances?
PM Shehbaz directed that all remittances sent by overseas Pakistanis must be processed through digital channels. He asked banks, the Pakistan Banks’ Association, and financial institutions to take active steps to make this happen, with a special focus on awareness and on expanding Raast-based payments.
How many digital transactions did Pakistan record in FY26?
Between July 2025 and June 2026, Pakistan recorded 11.9 billion digital transactions, reflecting the growing adoption of electronic payment systems across the country. The SBP governor separately confirmed the figure is approaching 12 billion when including all retail channels.
What is Raast and why does it matter for remittances?
Raast is Pakistan’s national instant payment system run by the State Bank of Pakistan. It allows free, real-time transfers between bank accounts and wallets. The Pakistan Banks’ Association has set targets for member banks to push Raast adoption, making it the primary rail for routing incoming remittances directly to recipients without cash involvement.
What happens to the 8% of remittances still coming in through informal channels?
The government has not announced penalties yet. The current approach is incentive-based: better digital infrastructure, awareness campaigns, and expanding the Roshan Digital Account framework to more senders. The independent third-party review due in November 2026 is expected to recommend what further steps are needed to close the remaining gap.
