Federal Board of Revenue (FBR) has taken a major step toward digitalizing the economy by making debit and credit card payments mandatory for businesses instead of cash transactions. This initiative is part of Pakistan’s commitments to the International Monetary Fund (IMF) and aims to enhance revenue collection.

In the first phase, tier-one retailers and large businesses are required to install point-of-sale (POS) machines connected to the FBR’s computerized system. Additionally, the government has decided to monitor business transactions through CCTV surveillance to ensure compliance.

Experts in the field of economics have largely welcomed the transition towards digital payments. Economist Dr. Khaqan Najeeb stated that the move aligns Pakistan with global financial trends, where digital payments are becoming the norm.

However, economist Dr. Sajid Amin emphasized that the government must ensure smooth implementation without giving the impression that the initiative is solely focused on taxation. “If documentation is introduced merely to expand the tax net, it will naturally face resistance,” he added.

Experts have also pointed out the challenges of rolling out digital payments nationwide. Taxation specialist Dr. Ikram-ul-Haq suggested that before enforcing digitization on businesses, the government should first digitize its own departments. “If the government itself is processing salaries through outdated book adjustments, how can it expect businesses to fully digitize?” he questioned.

Meanwhile, economic expert Dr. Khalid Walid highlighted concerns regarding financial inclusion, particularly in rural areas. “Pakistan’s debit and credit card penetration is still low. However, microfinance banks are well-integrated, and perhaps the FBR can leverage them to expand financial access,” he suggested.

Under the new law, all businesses will be linked to the FBR’s system, which will compile daily, weekly, and monthly transaction data. Electronic invoices will be stored for six years, and any attempt to manipulate records will lead to legal action against those responsible.

As Pakistan takes steps toward digitalization, its success will depend on the effective implementation of the policy and the government’s ability to address concerns raised by businesses and experts alike.