Ayesha Saba

Pakistan’s traditionally cash-heavy livestock trade took a decisive digital turn during FY 2024-25 as the State Bank of Pakistan’s Eid-ul-Azha Digital Acceptance Initiative recorded extraordinary growth in electronic transactions. The State Bank’s Annual Payment Systems Review Report FY 2024-25 states that the programme enabled 64,553 digital payments amounting to PKR 4.66 billion across 54 cattle markets nationwide, representing a 396 percent increase in transaction volume and a staggering 731 percent rise in value over the previous year.

The initiative, launched jointly by SBP’s Banking Services Corporation and commercial banks, sought to promote cashless transactions in one of Pakistan’s most informal and high-volume sectors. Banks established mobile vans, digital booths, and help desks at markets to assist buyers and sellers with account opening, biometric verification, and QR-code issuance. Dedicated connectivity vans were deployed to ensure stable internet links in rural areas.

During the festival period, the central bank temporarily enhanced transaction and balance limits to PKR5 million to accommodate large-value animal purchases. A total of 24 banks up 50 percent from last year participated in the initiative. Their staff operated in rotational shifts to provide round-the-clock support, helping farmers and traders complete digital sales securely and immediately.

SBP officials said the project not only simplified transactions but also served as a financial-inclusion gateway for thousands of participants who had never used bank accounts before. The initiative also targeted ancillary service providers such as fodder suppliers, transporters, and veterinary workers encouraging them to receive payments digitally. Each market was linked with regional bank branches for cash-to-digital conversion and account-maintenance support.

Economists believe that the remarkable 731 percent jump in transaction value illustrates Pakistanis’ increasing trust in digital money even in rural cash-centric settings. Digital payments reduce security risks and help document economic activity in the livestock sector, estimated at over 10 percent of GDP. By formalising these transactions, SBP is broadening the reach of financial services into agriculture and rural commerce.

Encouraged by the success of FY 2024-25, the central bank plans to expand the programme nationwide in the next fiscal year, adding more districts and automating merchant on-boarding through Raast’s P2M module. The review concludes that cashless Eid markets demonstrate Pakistan’s potential to extend digital finance beyond urban boundaries and build a truly inclusive cash-lite economy.

Credit: INP-WealthPk