ISLAMABAD: Pakistan’s state minister for finance Bilal Azhar Kayani announced that the government plans to govt-to-person payments to digital form by stopping cheque-based transactions altogether as part of efforts towards transitioning to a cashless economy. He made this announcement during the launch event for Z-Wallet, the newest digital financial service platform rolled out by the government.
These comments came during the announcement ceremony of the launch of Z-Wallet, wherein telecom operator Zong has collaborated with fintech firm Zindigi, backed by JS Bank, to provide regulated digital banking services within the existing My Zong App (MZA).
The platform works via an embedded finance approach using the Banking-as-a-Service (BaaS) capabilities provided by Zindigi, making it easier for the app’s 22+ million active monthly users to avail themselves of various banking services without installing another application.
Powered by Zindigi's banking stack provided by JS Bank and within the regulatory structure of State Bank of Pakistan, Z-Wallet merges technology systems and customer interfaces of both Zong and Zindigi for digital banking and financial technology solutions. The users will be able to utilize various functionalities ranging from inter-bank money transfers to any bank of Pakistan via RAAST, payment of utilities bills and internet bills, and recharges on their phones via a unified platform using one login-ID and pincode. Some of the upcoming functionalities include Nano Lending, Z-Debit card, and Zong Bundles.
Govt-to-Person Payments: Government Targets on Digital Payments
Speaking in the Capital, the Advisor said that the Digital Payments Committee headed by the Prime Minister had set ambitious targets to scale up merchant base using digital payments and boost usage of digital banking services and achieve full-scale digitisation of all government transactions. According to the Advisor, merchant base for digital payments rose from about 500,000 to 2.03 million in one year from June 2025 to June 2026, surpassing the initial target of reaching two million merchants. Similarly, users of digital banks surged from 95 million to approximately 137 million.
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Under the initiative aimed at promoting digitalization of government-to-person (G2P) payments, Kayani noted that for a transaction to be termed fully digital, all processes need to occur electronically, eliminating the involvement of any human intermediary throughout the transaction process.
Kayani revealed that in June 2025, the level of digitization of centralized organizations stood at 9%, increasing to 76% in FY26. At the same time, self-accounted organizations’ digitization rates rose from 5% to 75%.
According to the statement by Kayani, one major milestone that was accomplished using BISP involved transferring money to over 10 million beneficiaries directly. In this case, BISP transactions would be fully digitized, with each beneficiary receiving a digital wallet similar to how a regular banking account functions.
Under such arrangements, individuals can use these digital wallets to settle electricity bills or even make payments without losing any amount due to transaction fees. Previously, recipients had to collect codes before visiting agents who assisted in withdrawing payment amounts from BISP accounts.
According to the minister, the government has selected some high impact organisations to prioritise their digitisation drive. These include the Capital Development Authority (CDA), passport department, National Highway Authority, transport departments, and utility firms like gas and power. The minister reaffirmed that the end goal of the government will always remain to ensure that all G2P transactions take place through digital means without issuing any cheque. “It doesn’t matter if you are an employee, a pensioner, or even a vendor; all of them need to get payments done through digital mode,” he explained.
Z-Wallet launch highlights progress made towards digital transformation of Pakistan Minister for Information Technology and Telecommunication Attaullah Tarar talked about the importance of Z-Wallet launch amid efforts to transform Pakistan digitally. According to him, “Digitalization of Pakistan needs to benefit its citizens,” adding that “Z-Wallet launch demonstrates the power of telecom companies and fintech solutions to make it easier for millions of Pakistanis to gain access to digital financial products.”
Commenting on the Z-Wallet launch announcement on Sunday, Sajid Munir, head of marketing at Zong, stated: “This is yet another step forward toward the further development of the digital offerings ecosystem of Zong towards financial services, thereby creating opportunities for digital inclusion.”
Noman Azhar, chief officer at Zindigi (Co-Founder), noted that “the next phase of financial inclusion will not be about creating additional bank destinations; rather, it will be about bringing banking into existing ecosystems.”
Following its soft launch, Z-Wallet has shown positive initial momentum with an acquisition of about 22,000 registered wallets conducting over 12,000 transactions within a short span without making any major spending on its marketing efforts.
Over 500,000 downloads per month of the My Zong Application provides Z-Wallet access to an ever-growing national digital ecosystem where financial solutions can be scaled further across Pakistan.
The partnership highlights the increasing trend of embedding finance on a global scale, wherein banking and financial services are offered to customers through the same digital channels they interact with daily instead of engaging with the legacy system of financial institutions separately. The digitization of payments from government agencies to citizens is gaining momentum in Pakistan, positioning ventures such as Z-Wallet as an integral component of Pakistan’s journey towards becoming completely cashless.