KMC introduces digital payment system

KARACHI: In line with the digitalization vision of Mayor Karachi Barrister Murtaza Wahab, the Karachi Metropolitan Corporation (KMC) has decided to introduce a fully digital payment system through the State Bank of Pakistan’s Raast platform, becoming the first municipal institution in the country to process all payments through electronic transfers. Mayor said that from the new financial year beginning in July 2026, all payments to KMC vendors, contractors and other approved beneficiaries will be transferred directly to their bank accounts through Raast. He said the digital payment system would play a key role in promoting transparency, good governance and financial discipline within the municipal administration. “Through Raast, payments will be transferred to beneficiaries and vendors in a secure, fast and real-time manner, while eliminating paperwork, manual procedures and delays associated with conventional payment methods, ” he said. The Mayor described the initiative as more than a technological upgrade, calling it a transformative step towards modernizing KMC’s financial management system. “This landmark initiative will strengthen financial oversight, enhance transparency, improve efficiency and reduce administrative costs, ” he added. Barrister Murtaza Wahab said KMC has become the first municipal institution in Pakistan to adopt a cashless financial model in accordance with the payment framework approved by the Accountant General Sindh, marking a significant milestone in the implementation of a modern and transparent financial system. KMC Financial Advisor Gulzar Abro gave a detailed briefing on the project’s key features, implementation strategy and rollout timeline. He highlighted the operational benefits of the digital payment mechanism and outlined the measures being taken to ensure its smooth implementation across all relevant departments. The initiative is expected to improve financial governance, streamline payment processes and support the broader objective of digital transformation in public sector institutions. Copyright Business Recorder, 2026

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