Pakistan plans to make all remittances sent by overseas workers fully digital as part of a broader strategy to accelerate the country's transition to a cashless economy, Gulf News reported.

Prime Minister Shehbaz Sharif has directed officials to ensure that all remittance inflows are processed through digital channels, saying the move would improve transparency, efficiency and economic activity.

The directive was issued during a high-level meeting on digital payments, where officials reported that 92% of remittances received over the past fiscal year had already been transferred digitally.

The initiative follows a record year for overseas inflows, with workers' remittances reaching $41.6bn in FY2025-26, making them Pakistan's largest source of external financing and a key contributor to the country's foreign exchange earnings.

The government is now seeking to increase the share of digital remittances to 100%, while encouraging wider adoption of electronic payments across the economy. Sharif also instructed authorities to step up awareness campaigns promoting QR code-based payments and urged banks and financial institutions to accelerate the rollout of digital payment infrastructure.

Pakistan has recorded rapid growth in digital financial services over the past year. The number of merchants accepting QR code payments has risen 300% to around 2mn, while mobile banking users have increased from 95mn to 137mn.

Officials said the country processed 11.9bn digital transactions during FY2025-26, reflecting growing adoption of digital payment platforms by businesses and consumers.

The government has also expanded the use of digital payments in public services. Nearly all payments to the National Database and Registration Authority (NADRA) are now made electronically, while all disbursements under the Benazir Income Support Programme (BISP), covering around 10mn beneficiaries, are being transferred through digital wallets.

The latest measures build on Pakistan's wider digital finance strategy. Last month, the government expanded its Roshan Digital Account programme, originally introduced for overseas Pakistanis, to allow foreign nationals and international investors to open accounts.

Authorities have increasingly promoted digital financial systems to improve transparency, reduce reliance on cash and expand financial inclusion. A high-level committee established last year continues to oversee the country's transition to a cashless economy, with an independent review of progress expected later this year.