Pakistan May Ban Cash Transactions: Govt Considering Digital Payments
In a significant move to promote electronic payments and enhance financial transparency, the Pakistan government is considering implementing a ban on cash transactions beyond a specific limit at retail outlets and food establishments. The proposed measure, set to included in the upcoming budget for 2023-24, aims to encourage the use of non-cash payment methods such as debit/credit cards, mobile payments, and other electronic means.
According to sources, the Federal Board of Revenue (FBR) is currently evaluating the feasibility and potential impact of the proposal on increasing documentation. Under the plan, retail outlets and food establishments, including restaurants, would prohibited from accepting cash transactions exceeding a certain limit, possibly set at Rs. 10,000 and Rs. 5,000.
Implementation Strategy:
To facilitate the transition towards electronic payments, retail outlets would required to install Point of Sale (POS) machines capable of processing non-cash transactions. The government is also considering offering incentives to retailers to encourage the adoption of electronic payment systems.
Expected Benefits:
The restrictions on cash transactions beyond the specified limit and the promotion of electronic payments aim to bring transparency and accountability to the retail sector. By ensuring that all transactions recorded and traceable, the measure aims to minimize tax evasion and curb illicit activities. Additionally, it is expected to foster the use of banking services, enhance financial inclusion, and provide valuable data for decision-making purposes.
The proposed ban on cash transactions beyond a certain limit in Pakistan’s retail outlets and food establishments signifies the government’s commitment to modernize payment systems and foster a more transparent economy.
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