I. Background (BG)

1. This refers to the earlier KQU whereby we informed about FBR interalia sealed like (a) Jewellery Shop 8.5.25 (b) Super Mart 17.3.25 

2. Moreover, Important related TLQCs in trail, blue, italic and after double line viz (a) 3349 of 15.11.25 about QR Code Requirement for Punjab Shops & Violation Fines upto Rs 200,000 (b) 3320 of 27.10.25 about Life Style Monitoring Cell uncovered Hidden Assets and KC Recommendation (c) 3133 of 22.5.25 about Shops being Sealed for Tax Evasion - Hope that U are Compliant

3. Several Other related QCs including (a) CDQC293 of 13.11.25 about Crackdown on Massive Fabric smuggled goods & KC Views (b) BFIC326 of 11.11.25 about Digital Payment across Regulated Sectors adoption by 31.10.25 (c) TLQC3353 of 18.11.25 about High Tax Policies, etc lead to 1000s Industries Closure or Moved abroad & Action please (d) TLQC3298 of 7.10.25 about Tax on Marriage Halls & Functions - On FBR Radar

II. Updated Commentary

A. General

1. Further to matters in BG & KQU 3644 of 13.11.25, being an Important matter, we would inform you about Fast track move towards Cashless Economy and Digital Economy? Will Cash dealings lead to Jail? Is this Myth or Reality? (Attachment 3355.1) reported by Mr Yasir Rasheed for Suno News. in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2. The video discusses Pakistan's push toward a digital economy amid resistance to reducing cash transactions, highlighting tensions between government initiatives and public preferences.

B. Key Concerns Raised

1. Cash V/S Digital Shift: Questions whether cash dealings could become criminalized, with fears that everyday transactions (e.g., shopkeepers accepting cash or laborers receiving wages) might fall under scrutiny. 

2. Public Anxiety: People worry about a future where all payments are digital and traceable, potentially leading to surveillance rather than convenience. 

C. SBP Report Highlights

1. Retail digital payments reached 88% share, with over 9 billion transactions worth PKR 612 billion in the past fiscal year. 

2. Mobile banking usage grew 52%, internet banking 33%, and Raast (instant payment system) doubled. 

3. Urban areas show increasing adoption, but rural Pakistan remains cash-dependent due to poor internet and limited banking access. 

D. Restaurant Incident

1. A popular Islamabad restaurant was reportedly shut for not accepting digital/card payments, sparking social media debate. 

2. This symbolizes broader conflict: Many small businesses insist on cash, sometimes charging extra for cards, viewing digital payments as monitoring tools for taxes.

E. Government V/S Business Perspectives

1. Government View: Digitalization documents the economy, reduces tax evasion, and combats corruption; cash enables undocumented money (estimated 40% of economy informal). 

2. Business Concerns: Fear of FBR tracking, bank fees eroding profits, and lack of trust in digital security; many lack accounts or registration. Cash is legal but facilitates evasion; urban youth adopt apps like Raast and EasyPaisa, but small vendors and laborers stick to cash.

F. Challenges and Global Context

1. Barriers: Limited POS terminals (about 100,000, mostly urban), connectivity issues, data privacy fears, and high informal sector. 

2. Economy Scale: Pakistan's economy ~$410 billion (IMF), with significant undocumented portion; Vision 2028 promotes QR codes and digital banking. Similar debates in India, Nigeria, Indonesia; transition will be gradual, needing trust-building, lower tax slabs, and better infrastructure. 

Digital trends will grow in cities, but cash dominance persists until digital systems prove secure and beneficial for all, especially small traders and workers. The video critiques overly optimistic reports, emphasizing ground realities over statistics. 

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III. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal   & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.