The Pakistani government has established a seven-member committee to develop a comprehensive mechanism for digitizing fuel payments nationwide, aiming to reduce cash transactions and enhance financial transparency. This initiative is part of a broader strategy to promote a cashless economy by introducing differential pricing for cash and digital payments, particularly in the fuel sector.
Key Points:
- Committee Composition: Led by Sharjeel Murtaza, Chief Digital Officer of Karandaaz Pakistan, the committee includes representatives from the Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority, Oil Companies Advisory Council, and the State Bank of Pakistan.
- Digital Payment Mandate: All petrol stations across the country will be required to offer digital payment options, such as QR codes, debit/credit cards, and mobile payment services, alongside traditional cash payments.
- Differential Pricing: Government-notified petroleum prices will apply exclusively to digital transactions. Cash payments will incur an additional charge of approximately Rs2–3 per litre, incentivizing consumers to adopt digital payment methods.
- Precedent Measures: Similar strategies have been implemented, such as higher cash payment rates at motorway tolls compared to discounted rates for M-Tag users, and lower GST rates for digital payments at restaurants in Islamabad.
- Objective: The initiative aims to document retail transactions more effectively, reduce cash-based economic activities, and gradually transition towards a low-cash or cashless economy.
The committee is expected to finalize its recommendations ahead of the upcoming federal budget, aligning with the government’s commitment to modernize payment systems and enhance fiscal transparency.