KARACHI – Pakistanis usually preferred paying cash at petrol pumps, unless there are some offers, while fuel stations also remained reluctant to accept card payments because of high banking charges.
State Bank of Pakistan stepped in with extended fee relief until January 2027, making digital payments more affordable and giving a fresh push to the nationwide rollout of the Raast QR payment system.
The concessionary pricing mechanism for digital payment transactions at petrol pumps has been extended until January 2027, cutting transaction costs for fuel stations and encouraging wider adoption of the Raast QR payment system.
Merchant Discount Rate (MDR) for all card-present transactions at fuel stations involving the purchase of fuel and related products will remain capped at Rs1 per litre. Meanwhile, the Interchange Reimbursement Fee (IRF) has been fixed at Rs0.20 per litre for the same category of transactions. The concession applies to all payment cards issued in Pakistan and takes effect immediately.
The move aimed to push digital payment for masses while speeding up the nationwide deployment of the interoperable Raast QR platform. SBP thus directed banks, microfinance banks (MFBs), electronic money institutions (EMIs), payment system operators (PSOs), and payment service providers (PSPs) to work closely with petrol pump operators to ensure Raast QR payment facilities are installed, activated and fully functional for customers purchasing fuel and related products.
All regulated entities have been instructed to actively engage with fuel station operators to expand the availability of Raast QR payment acceptance across Pakistan.
SBP said the pricing framework will remain in place until January 31, 2027, after which it will assess market feedback, the effectiveness of the concession and the progress made in digital payment adoption before deciding on the next course of action. The new instructions are effective immediately, while all previous directives on the subject remain unchanged.
Petrol pumps currently pay less than 1pc bank charges on card transactions, translating to approximately RsRs2.40 per litre. Dealers have long argued that these charges discouraged both banks and fuel stations from expanding card payment facilities.
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