The Punjab government has finalized a $35 million loan agreement with the World Bank to support its move toward a cashless economy, officials said. The financing, worth Rs9.9092 billion, will be used to expand digital financial transactions and improve the monitoring of government revenue.
According to officials, the project aims to address long-standing problems in the province’s financial management by replacing cash-based processes with digital systems. Reducing the use of cash is expected to help limit financial irregularities that are often difficult to track under manual systems.
A key part of the project is the development of a digital system that will allow authorities to monitor revenue collection in real time. Officials said the new system will provide better visibility into government receipts than the existing paper-based system, making it easier to identify discrepancies and improve accountability.
More than Rs9.9 billion from the loan has been allocated to modernize Punjab’s revenue collection system. The funds will support the digitization of tax collection and other government payments as part of wider efforts to bring the province’s financial system closer to international standards, with technical support from the World Bank.
For citizens, one of the biggest changes will be the ability to pay government fees, taxes and other official charges through digital methods instead of cash. Officials expect that greater use of digital payments will help increase provincial revenue while making the payment process easier and more transparent for the public.
The loan is part of the World Bank’s wider engagement in improving provincial financial systems in Pakistan, where digitization projects are increasingly being used to improve tax compliance and reduce leakages in public revenue.
