Govt to Issue Debit Cards for State-Owned Enterprises

The federal government has decided to issue debit/credit cards for state-owned enterprises (SOEs) to address petty cash and other money issues. This was decided at a high-level meeting chaired by Prime Minister Shehbaz Sharif, reported Express Tribune. The meeting agreed that debit cards should be used to meet the petty cash needs of ministries, divisions, state-owned enterprises, and other government departments. A committee under the Finance Division has been formed to evaluate the integration of a card payment system for current payment procedures, proposed debit card upgrade, advantages and disadvantages, and regulatory requirements. It will submit a comprehensive report to the prime minister for a formal decision. The goal is to enhance the use of formal banking channels for the inflow and outflow of foreign exchange, thereby discouraging informal channels like Hawala and Hundi. To promote formal networks, the government is working to restore the cash-over-counter facility. The Finance Division will form a working group comprising the Ministry of Commerce, the State Bank of Pakistan, and the Federal Board of Revenue. This group will focus on restoring this facility and identifying underlying issues and providing updates at the next Economic Coordination Committee (ECC) meeting next month.