Islamabad sets December 31 cashless target as ICT and CDA offices prepare to stop accepting cash
Talal Chaudhry says government departments will stop receiving cash after November 30, while all merchants are to be connected to digital payment facilities by the end of December.
ISLAMABAD: The government has set December 31 as the target for bringing all merchants in Islamabad into the digital payment system, while departments of the Islamabad Capital Territory administration and the Capital Development Authority will stop accepting cash payments after November 30, Minister of State for Interior Talal Chaudhry said.
Chairing a meeting on the Cashless Islamabad project, Chaudhry said implementation was being accelerated on the instructions of Prime Minister Shehbaz Sharif and Interior Minister Mohsin Naqvi, with the aim of making the federal capital Pakistan’s first fully cashless city.
CDA Chairman Sohail Ashraf, representatives of the banking sector and senior officials attended the meeting, according to the meeting statement.
The announcement sets out two separate milestones: ending cash receipts at ICT and CDA departments after November 30, followed by the inclusion of all merchants in the capital’s digital payment network by December 31.
Chaudhry said approximately 26,000 merchants in Islamabad had already been connected to digital payment facilities. The objective, he added, was to make such facilities available across the commercial sector, from street vendors and small shopkeepers to major business centres.
He recalled that the interior minister had pledged to make Islamabad Pakistan’s first cashless city and the world’s first cashless capital. That description remains a stated government ambition rather than an independently established distinction.
The minister said the transition would improve financial transparency, strengthen tax monitoring and make transactions more efficient. He stressed that consultation with stakeholders and their suggestions would be important to the project’s success.
Banking-sector representatives expressed support for the initiative and assured the government of their cooperation, while participants emphasised coordination among the institutions responsible for implementation.
Earlier Rollout Across Markets and Public Services
The latest deadlines build on a digital payment programme already introduced in parts of Islamabad. In November 2025, the CDA reported that cashless facilities were operating at weekly bazaars, its One-Window Facilitation Centre and metro and electric bus services, with QR-based payments being expanded to commercial centres, neighbourhood markets and other businesses.
The authority also inaugurated a designated cashless weekly bazaar in Sector H-9 in November 2025, presenting it as a step towards broader adoption of electronic transactions across the capital.
However, published official figures require clarification. While the latest meeting statement cites around 26,000 connected merchants, a CDA statement issued in November 2025 had reported more than 39,000 vendors and shopkeepers participating in the cashless system. The latest statement does not explain whether the figures cover different categories, active users or reporting periods.
Connectivity and Implementation Remain Important
The expansion comes amid a wider federal push for digital payments. At a review meeting on November 6, Prime Minister Shehbaz Sharif directed authorities to prepare a roadmap with clear targets and timelines, improve internet availability and address problems faced by consumers using digital payment services.
Experience at Islamabad’s weekly market has already highlighted practical obstacles. Reporting from the market in November 2025 documented complaints from vendors about slow internet connections, with some customers reverting to cash when digital transactions could not be completed.
The latest meeting statement does not specify arrangements for service interruptions, assistance for residents without access to digital payment facilities, or any exemptions from the departmental cash-payment restriction.
It also does not expressly announce a blanket prohibition on cash purchases at private businesses. The December 31 milestone concerns bringing all merchants into the digital payment system, while the explicit instruction to stop receiving cash applies to ICT and CDA departments after November 30.
