Farooq Awan

Pakistan’s national payment infrastructure processed more than 5.765 billion transactions during the first quarter of FY26, reflecting strong growth across retail, digital and large-value payment channels, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that the combined value of transactions processed through various payment systems reached Rs 590.263 trillion during the quarter, highlighting the expanding scale and depth of the country’s formal financial activity. The figures include transactions conducted through retail payment systems, card-based channels, instant payment platforms and the Real-Time Gross Settlement (RTGS) system.

Retail payments accounted for the bulk of transaction volume, with 2.8 billion transactions recorded during the quarter, while large-value payments processed through RTGS contributed the majority of transaction value. The report noted that the coexistence of high-volume retail payments and high-value wholesale transactions reflects a maturing and diversified payment ecosystem.

According to the review, digital channels played a central role in driving growth, with mobile banking, internet banking, cards and instant payment systems collectively supporting increased transaction frequency and higher user engagement. The rise in digital adoption has been supported by improved payment infrastructure, wider access to banking services and greater consumer confidence in electronic payment mechanisms.

The State Bank highlighted that the expansion in payment activity was accompanied by increased system capacity, enabling payment platforms to handle higher transaction volumes without compromising reliability or security. Enhancements in processing capability and system resilience have strengthened the overall efficiency of the national payments framework.

The report also noted that payment system growth has been aligned with broader economic activity, reflecting increased commercial transactions, government payments and financial market operations. In particular, higher settlement volumes through RTGS indicate rising activity in interbank and government-related transactions.

According to the central bank, the sustained expansion in both the volume and value of payments demonstrates continued progress toward a more digitised and efficient financial system. The growing reliance on electronic payment channels is expected to support transparency, improve liquidity flows and contribute to long-term financial sector development.

The State Bank concluded that with ongoing infrastructure upgrades and policy support, Pakistan’s payment systems are well-positioned to accommodate future growth in digital transactions and to play a central role in supporting economic activity across sectors.

Credit: INP-WealthPk