The Presidents/Chief Executives,
All Banks/Microfinance Banks/Payment Schemes

Dear Madam/Sir

Transaction Fees on Government Payments through Payment Cards and Electronic Wallets

In order to promote digital payments through payment cards in the country, it has been decided that banks in Pakistan shall not charge any variable transaction fee (Interchange, Merchant Discount Rate etc.) on payments made to Federal and Provincial Governments using electronic modes of payments including payment cards and electronic wallets etc. The acquiring banks, however, may charge a pre-determined flat service fee from the concerned government entities with mutual agreement. Further, these instructions will be applicable at the time of signing of new agreement or the renewal of existing agreements.

Accordingly, all issuing and acquiring banks/microfinance banks/payment schemes are advised to meticulously comply with these instructions.

Please acknowledge receipt.