ISLAMABAD: The Deputy Governor of the State Bank of Pakistan (SBP), Dr. Inayat Hussain, announced that the SBP is simplifying the process for opening merchant accounts in Pakistan.

He emphasized the need to encourage consumers to adopt digital payment platforms, such as QR code systems, to foster greater financial inclusion.Dr. Hussain was addressing the Senate Standing Committee on Finance and Revenue during a meeting held at the Parliament House, chaired by Senator Saleem Mandviwalla. The committee expressed concerns regarding the pace of digital payment adoption in Pakistan and set a firm deadline for implementing a comprehensive digital payment system by June 30, 2025.The SBP Deputy Governor provided updates on the ongoing efforts to enhance digital payment solutions, including collaboration with organizations like Karandaaz. He explained that significant progress had been made in simplifying the systems for onboarding merchants to the digital payment platform. In particular, the SBP and Pakistan Banks Association have developed a streamlined process, reducing the form length from 16 pages to just 2-3 pages for easier merchant registration.

The committee also discussed the SBP's initiatives aimed at promoting local currency-based payment systems to decrease reliance on international platforms such as Visa and MasterCard. The SBP representative shared details about initiatives like "Raast," Pakistan's instant payment system launched in 2021, and "PayPak," the country's domestic payment card system. The committee underscored the importance of boosting the adoption of local payment systems to enhance Pakistan's economic sovereignty.Responding to a question, Dr. Hussain highlighted that 49 million debit cards have been issued in Pakistan, with 11.4 million of them being PayPak cards.The committee raised concerns about Pakistan's lagging digital payment infrastructure, particularly in comparison to the global success of digital payment platforms, including QR code systems.  Senator Mandviwalla emphasized the need for progress in this area to align with global trends. He stressed, "The digital payment system is working successfully worldwide, and we must make progress in this area as well." Additionally, the committee reviewed the State-Owned Enterprises (Governance and Operation) (Amendment) Bill, 2024, presented by Senator Anusha Rehman. After deliberation, the committee approved amendments to clarify the operation and governance of state-owned enterprises, particularly with regard to privatized entities that continue to face legal ambiguity. Lastly, the committee reviewed an issue raised by Senator Abdul Shakoor concerning the recruitment practices at the Zarai Taraqiati Bank Limited (ZTBL).

Concerns were raised about the use of fake domiciles to bypass the Balochistan quota system. The committee directed the Federal Investigation Agency (FIA) to verify the domiciles of 169 employees from Balochistan within 30 days. The meeting was attended by senators and senior officials from the Ministry of Finance, SBP, and other relevant departments.