Web Desk: State bank has introduced a new pricing framework to encourage digital payments at fuel stations, capping transaction charges on card payments and directing banks to expand QR code-based payment acceptance across the country’s petroleum retail network.
The State Bank of Pakistan (SBP) said the Merchant Discount Rate (MDR) for debit and credit card transactions at fuel stations will be capped at Rs. 1 per litre. Meanwhile, the Interchange Reimbursement Fee (IRF) will be limited to Rs. 0.20 per litre for purchases of fuel and related petroleum products.
The special pricing arrangement will remain in force until Jan. 31, 2027, and will apply to all payment cards issued in Pakistan.
In addition to lowering transaction costs, the SBP has instructed commercial banks to work closely with fuel station operators to roll out Raast QR payment acceptance nationwide. The move will enable motorists to pay for fuel using Pakistan’s instant digital payment system.
The initiative targets one of the country’s most cash-dependent sectors. Pakistan has more than 15,000 fuel stations, but point-of-sale (POS) terminals remain concentrated in major cities, limiting card payment options in many parts of the country.
Industry experts said the revised pricing structure is likely to encourage banks and fuel retailers to invest in additional POS terminals and QR payment facilities, broadening digital payment access while reducing cash handling and related security risks.
The Pakistan Petroleum Dealers Association (PPDA) welcomed the central bank’s decision, describing it as a major step towards promoting digital transactions and advancing financial inclusion.
Petroleum dealers said fuel stations currently pay bank charges of about 0.8% on card transactions, equivalent to roughly Rs. 2.40 per litre. According to the association, the high processing costs have discouraged both fuel retailers and banks from expanding card payment infrastructure.
PPDA Chairman Malik Khuda Baksh said the reduced charges would make digital payment adoption more attractive for filling stations.
“Although our demand was for zero percent charges, we appreciate this initiative and believe that, in consultation with the PPDA, the charges will be reduced further in the future,” he said.
The association had formally sought a complete waiver of transaction charges during a meeting with officials from the Oil and Gas Regulatory Authority (Ogra) and the government in the final week of July. At the time, Federal Minister for Petroleum Bilal Azhar Kayani assured dealers that the issue would be addressed, and the PPDA said the latest decision fulfilled that commitment.
According to the latest SBP data, Pakistan has 68.3 million payment cards in circulation, with card-based transactions continuing to increase, particularly in the retail sector.
The central bank’s latest measures are expected to lower payment costs for fuel retailers, expand acceptance of digital payment channels and support broader adoption of cashless transactions across Pakistan’s petroleum industry.
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