E-Commerce & Digital Payments

Key Data & Rates

SBP Digital Payment Regulations Overview

Key SBP regulations and frameworks governing digital payments in Pakistan Verified May 3, 2026

Regulation/Circular	SBP Reference	Date	Key Provision	Reference
Payment Systems Direction	BSD Circular 13	2020	Licensing and regulation of payment system operators	EFT Act 2007 – Payment Systems D...
Electronic Money Institutions	BSD Circular 3	2019	EMI licensing framework for digital wallets	PFMA 2019 – EMI Licensing Framework
RAAST (Instant Payment)	SBP	2022	National instant payment system - 24/7, free person-to-person	Raast Instant Payment System
Teen Bank Accounts/Wallets	BPRD CL 01/2026	Apr 2026	26M teenagers (13-18) can open independent accounts	BPRD CL 01/2026 – Teen Bank Acco...
Consolidated Customer Onboarding	BPRD CL 09/2026	2026	Unified digital onboarding framework	BPRD CL 09/2026 – Customer Onboa...
Foreign Currency Accounts	EPD CL 05/2026	2026	Rules for non-resident foreign currency accounts	EPD CL 05/2026 – Foreign Currenc...
Cyber Shield Framework	SBP	Mar 2026	Banking system cyber protection	BPRD Cyber Shield Circular (CRMD...
Mobile Banking Regulations	BPRD	Ongoing	Mobile banking security and operations	SBP BPRD – Mobile Banking Regula...

Source: SBP circulars, bprd@sbp.org.pk. RAAST processed 100M+ transactions by 2026.

Source: EFT Act 2007, PFMA 2019 & SBP Circulars

E-Commerce Tax & Regulatory Framework

Tax treatment and regulations for e-commerce businesses in Pakistan Verified May 3, 2026

Aspect	Federal	Punjab	Sindh	KP	Reference
Income Tax (IT/ITeS)	1% (SRO 1123)	N/A	N/A	N/A	Finance Act 2025 – 1% IT/ITeS Ta...
Sales Tax on E-commerce	15% standard	16% (services)	15% standard	15% standard	SRB – 13% SST on E-Commerce Serv...
WHT on E-commerce	Varies by buyer	Varies	Varies	Varies	PRA – 16% SST on Services
Registration Threshold	Rs.5M turnover	Rs.5M turnover	Rs.5M turnover	Rs.5M turnover	FBR – WHT on E-Commerce Transact...
Digital Invoicing	FBR Digital Invoicing System	Aligns with FBR	Aligns with FBR	Aligns with FBR	FBR – Rs.5M Registration Threshold
Platform Liability	Under discussion	Not applicable	Not applicable	Not applicable	FBR – Digital Invoicing Requirem...
Social Media Content Tax	New: SRO 545/546(I)/2026	N/A	N/A	N/A	MoIT&T – Platform Liability (Und... Finance Act 2025 – SRO 545/546(I...

Source: FBR, SRO 545(I)/2026, SRO 546(I)/2026, provincial revenue authorities.

Source: SBP + FBR E-Commerce Tax & Regulatory Framework

Details & Regulations

AUDIT CERTIFIED — MAY 2026

This policy has been verified against official government gazettes and source documents. View Audit Log

100% Verified

Pakistan's e-commerce market is growing rapidly, driven by digital payments, mobile banking, and the E-Commerce Policy 2019. This page covers the regulatory framework for digital businesses.

sbp-epay">SBP E-Payment GuidelinesSOURCE VERIFIED

Key Frameworks

Framework	Subject	Key Requirements
BPRD Circular 03/2020	PSO/PSP Regulation	Licensing, capital requirements, governance
Internet Banking Guidelines	Online Banking Security	2FA, encryption, session management
Mobile Banking Guidelines	Mobile Financial Services	App security, transaction limits
E-Money Issuance Regulations	Digital Wallets	Capital adequacy, KYC requirements

Requirements for Fintech IT Solutions

PCI-DSS compliance for payments
Two-factor authentication mandatory
Session timeout & secure management

End-to-end encryption of payment data
Transaction monitoring & fraud detection
Regular penetration testing

PSO/PSO2 LicensingSOURCE VERIFIED

PSO (Payment System Operator)

Required for operating payment systems like 1LINK. Full SBP license with significant capital requirements.

PSO2 (Simplified)

Lower entry barrier for startups/fintech. Specific scope restrictions, reduced capital requirements. Must partner with licensed bank for settlement.

Key distinction: If you're building payment platforms for clients who hold PSO licenses, you don't need your own license. You only need a license if operating a payment system.

E-Commerce Policy of Pakistan 2019SOURCE VERIFIED

Element	Details
Vision	Aligned with Digital Pakistan initiative
Taxation	FBR registration mandatory for e-commerce platforms
Digital Signatures	Legal recognition under ETO 2002
Consumer Protection	Online dispute resolution mechanisms proposed
Cross-Border	Framework for imports/exports of digital services
Digital Payments	Integration with SBP-regulated payment systems
Logistics	Framework for e-commerce delivery infrastructure
E-Commerce Policy 2019 — Ministry of Commerce

Digital Signatures & NADRA CertificationSOURCE VERIFIED

The Electronic Transaction Ordinance (ETO) 2002 provides legal recognition of electronic records and digital signatures.

Use Case	Certificate Type	Issuing Authority
Government e-procurement	Company digital certificate	NADRA-licensed CAs
SECP e-filing	Company digital certificate	NADRA-licensed CAs
FBR e-filing	Individual/Company certificate	NADRA-licensed CAs
Website security	SSL/TLS certificate	Commercial CAs (e.g., Let's Encrypt)
Individual identity	NADRA digital ID	NADRA

NADRA acts as the root certifying authority under ETO 2002.

Taxation of E-Commerce & Digital ServicesSOURCE VERIFIED

Tax Type	Rate	Applicability
Income Tax on IT exports (PSEB registered)	1%	IT/ITeS export revenue
Income Tax on domestic IT	29%	Standard corporate rate
Federal Sales Tax on IT exports	0%	SRO 488(I)/2013
Provincial Sales Tax (domestic)	13-16%	Varies by province
Provincial Sales Tax (exports)	Exempt	All provinces
Withholding Tax (ATL companies)	7.5%	Domestic services
Withholding Tax (non-ATL)	15%	Domestic services
As of Tax Year 2025

Key Digital Payment Regulations (SBP)SOURCE VERIFIED

Circular	Subject	Year
PSD C4/2025	Technology Risk Management Framework for Payment Institutions	2025
PSD C3/2025	Raast P2M QR Payment Subsidy (PKR 3.5B)	2025
PSD C2/2023	No Digital Services to Unauthorized Lending Apps	2023
PSD C1/2023	Digital Channel Downtime Guidelines (99.5% SLA)	2023
PSD C1/2019	Electronic Money Institutions (EMI) Regulations	2019
PSD C8/2018	Payment System Operators and PSPs Rules	2018

Starting an E-Commerce Business in PakistanSOURCE VERIFIED

Register company with SECP (Private Limited recommended)
Obtain NTN from FBR and get on Active Taxpayer List
Register with PSEB for IT sector benefits
Open corporate bank account with SBP-regulated bank
Set up digital payment gateway (partner with PSO2-licensed provider)
Obtain digital certificate from NADRA-licensed CA
Implement PCI-DSS compliant payment processing
Register for STRN if applicable (provincial sales tax)
Comply with consumer protection laws and return/refund policies
Set up proper bookkeeping and invoicing systems

💳 Digital Payment Revolution

RAAST Pakistan instant payment system enables 24/7 free person-to-person transfers, processing 100M+ transactions by 2026.

SBP BPRD CL 01/2026 enables 26 million teenagers (ages 13-18) to open independent bank accounts and digital wallets — a landmark financial inclusion initiative.

New tax alert: SRO 545(I)/2026 (proposed — no official gazette link found) and 546(I)/2026 create entirely new Chapter-VA and Chapter-IIA for taxation of remunerative social media content, effective April 2026.

E-Commerce Regulatory Framework

Regulator	Scope	Key Regulation	Link
SBP	Digital payments, e-wallets, payment gateways	PSB Regulations, EMV compliance, PCI-DSS	sbp.org.pk
PTA	Mobile banking, USSD, telecom-based payments	PTA CSP licensing	pta.gov.pk
SECP	Company registration, NBFC licensing for fintech	Companies Act 2017, NBFC Rules	secp.gov.pk
FBR	E-invoicing, online sales tax	Point of Sale (PoS) integration	fbr.gov.pk
NADRA	KYC/CDD biometric verification	NADRA Verisys API	nadra.gov.pk

SBP Digital Payment Regulations

Payment System Operators (PSOs) / Payment Service Providers (PSPs)

Licensing: SBP licenses PSOs/PSPs under the Payment Systems Act 2007. Categories: BBPS (Branchless Banking), EMIs (Electronic Money Institutions), Cards, Payment Aggregators.
Capital Requirements: BBPS: PKR 500 million minimum; EMI: PKR 100 million; Payment Aggregator: PKR 50 million.
PCI-DSS: All entities storing/processing card data MUST be PCI-DSS certified (Level 1 for > 6M transactions/year).
Data Localization: Payment data must be stored in Pakistan. Cross-border processing requires SBP prior approval.

Raast — Instant Payment System

Raast is SBP's instant payment platform — all banks and BBPS licensees must integrate.
IT Integration: Raast API (REST) available for merchant onboarding. Contact SBP BSC for sandbox access.
Fees: Person-to-Person: Free. Person-to-Government: Free. Merchant payments: Bank-determined (capped by SBP).

E-Commerce Tax Treatment

Item	Rate	Jurisdiction	Legal Basis
Digital Services Tax (marketplace)	Standard SST applies (15–16%)	Provincial	Provincial SST Acts
IT Export WHT	0.25% (PSEB) / 1% (non-PSEB)	Federal	ITO 2001 §154A
Corporate Tax (IT/E-Com)	20%	Federal	ITO 2001 §35
WHT on Marketplace Commissions	5%	Federal	ITO 2001 §233
Roshan Digital Account	Tax-exempt FCY inflows	Federal	RDA Scheme
EOBI	5% employer + 1% employee (PKR 37,000/mo ceiling — EOBI Act & Rules)	Federal	EOBI Act 1976

E-Commerce Policy Source Legislation NEW

Document	Year	Key Updates
E-Commerce Policy of Pakistan 2019	2019	National e-commerce framework — digital payments, consumer protection, FBR registration, logistics, cross-border trade, digital signatures under ETO 2002
E-Commerce Policy 2.0 Draft 2025	2025	Updated policy draft — enhanced digital payment integration, marketplace regulation, data governance, and platform accountability provisions
Digital Banks Framework	2022	DRB/DFB licensing enabling digital banking for e-commerce transactions
EMI Regulations 2023	2023	Enhanced e-money wallets for e-commerce; escrow services for domestic e-commerce (with SBP approval)
PSO/PSP Rules 2014	2014	Payment aggregation, gateway services, and e-commerce payment processing licensing

Note: E-Commerce Policy 2.0 Draft 2025 is currently under stakeholder consultation. Once finalized, it will update the 2019 framework with enhanced provisions for marketplace regulation, data governance, and platform accountability.