Why Is The Pakistani Govt To Ban Cash Transactions Across The Country?

Why Is The Pakistani Govt To Ban Cash Transactions Across The Country?

The Pakistani government is reportedly planning to encourage digital transactions and online payment systems. Thus Pakistan administration is considering implementing a ban on cash transactions beyond a certain limit at retail outlets, food retail stores and restaurants starting from 1st July, 2023.

Read more | First Republic Bank of US in Huge loses

The government aims to promote electronic payment methods and
increase documentation of transactions. By restricting cash transactions beyond a specific threshold, such as Rs 10,000 and Rs 5,000, the government hopes to encourage the use of alternative payment options like debit/credit cards, mobile payments, and other electronic means.
This move is expected to enhance transparency and accountability in
the retail industry. If the ban is implemented, all retailers will be required to install Point of Sale (POS) machines that accept non-cash transactions.
Additionally, the government is considering offering incentives to
encourage the retailers to facilitate the adoption of electronic payment
One of the primary reasons behind this proposal is to reduce the
possibility of tax evasion and illegal activities. By ensuring that every
transaction is documented and traceable, the government aims to
enhance tax collection and deter illicit practices.

Additionally, encouraging electronic payments and limiting cash
transactions can contribute to financial inclusion and the utilization of
banking services.
This shift towards digital payments can provide valuable data that can
be utilized for various purposes including tax collections, as stated by
the Federal Board of Revenue (FBR).
The ban on cash transactions beyond a certain limit is driven by the
government’s objectives to increase transparency, increase tax
compliance, and promote the usage of electronic payment methods.

Read more | Rs 50 coin issued by State Bank

By encouraging the documentation of transactions and discouraging
cash-based dealings, the Pakistani government is planning to create a
more accountable and inclusive economy for the country.

Read Previous

Atif Aslam’s ‘Mangan Aiyaan’ Soundtrack Hits With Catchy Beat

Read Next

Pakistani World Record in Robotic Surgery for Women