The Biz Update One of Pakistan's Most Reliable Business News Website
Related Articles
KARACHI, Aug. 3, 2026: The State Bank of Pakistan (SBP) has extended the concessionary pricing mechanism for payment card transactions at fuel stations until January 31, 2027, to promote digital payments and expand cashless transactions across the country.
According to an SBP circular issued on Monday, the concessionary arrangements will continue to apply to all payment cards issued in Pakistan, encouraging greater acceptance of digital payments at petrol pumps.
Under the revised framework, the Merchant Discount Rate (MDR) for card-present transactions involving fuel and related purchases has been capped at Rs1 per litre, while the Interchange Reimbursement Fee (IRF) has been fixed at Rs0.20 per litre.
The central bank also directed all regulated entities to work with fuel station operators to ensure the availability and activation of Raast QR-based payment facilities for fuel and related purchases.
The Pakistan Petroleum Dealers Association (PPDA) welcomed the decision, saying it would accelerate the adoption of digital payments and strengthen financial inclusion.
PPDA Chairman Malik Khuda Bakhsh said the reduced transaction charges would encourage more petrol pumps to accept card payments.
“Although we had requested zero percent charges, we appreciate this initiative and hope the fees will be reduced further in consultation with the PPDA,” he said.
Khuda Bakhsh added that the association had raised the issue of eliminating bank charges on card payments during a meeting with the Oil and Gas Regulatory Authority (OGRA) and government officials in late July. He said Minister Bilal Azhar Kayani had assured the association that the matter would be addressed, adding that the SBP’s latest decision reflects the government’s commitment to promoting digital payments.
