Key points
- CDA to digitise all municipal payments in Islamabad
- Initiative to target high-traffic areas first
- Islamabad to join global cities such as Stockholm, Oslo, and Beijing in embracing cash-free living
ISLAMABAD: In a visionary stride towards digital transformation, the Capital Development Authority (CDA), a civic agency of Pakistan’s capital, has unveiled a plan to turn Islamabad into the country’s first cashless city.
With this move, the city aims to swap coins and cash counters for clicks and QR codes, as all municipal payments, from utility bills and property taxes to parking fees, will soon be processed entirely through digital channels.
The initiative promises not just convenience, but a new era of transparent, efficient, and citizen-focused service delivery.
“Our goal is to make Islamabad a truly digital capital – smart, efficient, and citizen-focused,” Muhammad Ali Randhawa, chairman CDA told WE News English. “This shift will not only reduce the burden of bureaucracy but also empower citizens to manage services with a tap.”
A new shift
In the first phase of the transition, the CDA will roll out QR code-based and mobile app payments for services like taxes, water bills, and parking charges.
This shift will not only reduce the burden of bureaucracy but also empower citizens to manage services with a tap.” — CDA Chairman Muhammad Ali Randhawa
The shift means no more long queues or physical cash, as residents will now pay from their phones in seconds.
The project is being executed in collaboration with leading banks to ensure a secure and accessible digital ecosystem. Areas with high footfall will be prioritised in the initial rollout, followed by citywide scaling based on performance.
“Imagine paying your property tax while sipping coffee at home — that’s the ease we’re aiming for,” said Member Finance, CDA, Talat Mahmood Gondal.
“National priority”
Islamabad’s digital transformation is not happening in isolation. It aligns with a broader national agenda to digitize Pakistan’s economy. On July 28, the country’s Prime Minister Shehbaz Sharif directed federal and provincial authorities to fully embrace digital governance, calling it a “national priority.”
He also reviewed the progress of the Pakistan Digital Authority (PDA), the National Digital Commission, and The Merchant Onboarding Framework.
In June, the government also established three specialised committees Digital Payments Innovation and Adoption Committee, Digital Public Infrastructure Committee, and the Government Payments Committee to push this initiative forward.
Welfare
The digital wave is also reaching Pakistan’s social safety nets. The Benazir Income Support Programme (BISP) has started integrating digital wallets and payment systems to distribute aid more efficiently.
“This is not just about technology. It’s about dignity, transparency, and reaching the right people at the right time,” said Bilal Azhar Kayani, Minister of State for Finance.
Global cashless movement
Islamabad is now part of a fast-growing global club of cities ditching banknotes in favour of secure, cash-free alternatives.
Let us take a quick look at the leaders in the race:
Countries Cashless highlights
Sweden 98pc card ownership
China Digital yuan pilot processed $13.6B in two years; nearing full digital transition
Norway 98pc card usage, over 95pc use mobile payments
Finland Top in Europe for card and online banking usage; forecasts cashless by 2030
Netherlands 91pc use digital payments; pioneers of smartwatch transactions
UK Cash usage dropped 35pc since 2020; 6th globally in digital transaction volume
Poland 70pc adopted contactless payments since 2020; steady decrease in cash usage
Road ahead
Islamabad’s cashless journey will test not only the city’s tech infrastructure but also public readiness to embrace a digital lifestyle. With its pilot phase already in motion, success in the capital could open the door for similar transformations in cities across Pakistan.
Islamabad won’t just be the nation’s political capital — it could become a model digital metropolis for the entire region after this initiative.
“This isn’t just about payments. It’s about reimagining how citizens and governments interact in a modern Pakistan,” said CDA Chairman CDA Randhawa.
