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Pakistan ranks among the lowest in the world for adopting QR codes, according to Dr. Inayat Hussain, Deputy Governor of the State Bank of Pakistan.
Speaking before the Senate Standing Committee on Finance, Dr. Hussain highlighted the significant challenges faced by merchants in installing QR codes, pointing out that the country’s financial system is hindered by an overemphasis on taxation.
The Deputy Governor revealed that last year, merchants paid $138 million in fees for using bank cards, but when a merchant installs a QR code, they are often met with a tax-related notice from the Federal Board of Revenue (FBR), which leads to concerns and reluctance.
He explained that this focus on tax compliance creates hurdles for businesses, making them apprehensive about adopting the technology.
The Senate Finance Committee has requested a progress report from both the Ministry of Finance and the State Bank within six months. Dr. Hussain emphasized the importance of facilitating merchants in QR code adoption by simplifying processes such as onboarding, form filling, and account opening.
Additionally, Dr. Hussain addressed the issue of electric vehicles, confirming that the State Bank would not offer any refinancing schemes to support electric vehicles.
He clarified that any refinancing programs would have to be implemented through Exim Bank, rather than the central bank.
