Islamabad establishes the first weekly ‘cashless’ bazaar to promote digital payments and reduce tax evasion.

ISLAMABAD — A weekly “cashless” market has opened for the first time in Pakistan to promote digital payments, reduce tax evasion, and encourage small companies to use cashless transactions, according to the market’s management.

This month, the government activated digital wallets for welfare payments, and in October, the Pakistan Airports Authority (PAA) implemented a cashless model at airports as part of its digitalization push.

Raja Asad, the weekly market manager in Islamabad, stated that it was launched in accordance with Prime Minister Shehbaz Sharif’s Digital Pakistan Vision, which seeks to convert the country into a digitally empowered society.

“There are approximately 2,743 stalls here,” he informed me. “Ninety-nine percent of them are completely cashless and this is the first market in Pakistan that is cashless.”

Pakistan, with a population of over 240 million, has one of the lowest tax-to-GDP ratios in South Asia. The administration of Prime Minister Shehbaz Sharif has set a record collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025-26, a 9 percent rise over the previous year.

The aim is part of attempts to satisfy structural reform benchmarks outlined in a $7 billion IMF bailout package that includes an increase in the tax-to-GDP ratio.

Vendor Muhammad Khalid called the cashless market concept “very good,” claiming it was comfortable for both the public and sellers.

“Sometimes people don’t have money in their pockets,” he informed me. “The payment is processed online. It gets into the account. This is wonderful news.”

Muhammad Arshad, another dealer, applauded the idea but expressed concerns about Internet dependability.

“There is so much traffic here that the Internet doesn’t always operate. “The day before yesterday, when the market was open, there were three or four customers who wanted to pay but couldn’t due to slow Internet,” he stated.

“Then they paid with cash. There is an issue with the internet. There is no dispute about this. It’s sluggish, ineffective, and time-consuming.”

Kiran Fatima, a consumer at the weekly market, said that some sellers were purposefully denying digital payments owing to “scanner issues,” but that she was able to pay using Easypaisa’s e-wallet.

“Authorities should look into this because if the government has installed something, then everyone should use the scanner,” she told reporters.

“Because we pay taxes regardless. So it’s also a good thing we don’t have to pay in cash.