This decision was made during a high-level meeting chaired by Prime Minister Shehbaz Sharif, as reported by the Express Tribune. The meeting concluded that debit cards should be utilized to handle the petty cash requirements of ministries, divisions, state-owned enterprises, and other government departments.
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A committee under the Finance Division has been established to evaluate the integration of a card payment system into the current payment procedures. This committee will assess the proposed debit card upgrade, weigh the advantages and disadvantages, and determine the regulatory requirements. It will then submit a comprehensive report to the prime minister for a formal decision.
The initiative aims to enhance the use of formal banking channels for the inflow and outflow of foreign exchange, thereby discouraging informal channels such as Hawala and Hundi.
To promote formal networks, the government is working to reinstate the cash-over-counter facility. The Finance Division will form a working group comprising the Ministry of Commerce, the State Bank of Pakistan, and the Federal Board of Revenue. This group will focus on restoring this facility, identifying underlying issues, and providing updates at the next Economic Coordination Committee (ECC) meeting next month.
