Pakistan Connects to Arab World Payments Ecosystem with “Buna-Raast Project” Goes Live: SBP

Islamabad, October 2024– In a landmark development for Pakistan’s financial sector, theState Bank of Pakistan (SBP)has announced the successful integration of its Raast payment system with the Arab Monetary Fund’s (AMF) Buna cross-border payment platform. This historic collaboration allows for real-time, secure, and cost-effective payments between Pakistan and the Arab region, significantly enhancing the efficiency of remittances and regional financial integration. Governor of the SBP, Jameel Ahmed, underscored the strategic significance of this integration, describing it as a pivotal step towards strengthening Pakistan’s financial ties with the Arab world. “This partnership will not only facilitate remittances but will also streamline cross-border payments, bringing benefits to millions of overseas Pakistanis,” said Governor Ahmed. He also highlighted plans to launch the third National Financial Inclusion Strategy (NFIS 2028), which aims to further digitalize Pakistan’s financial infrastructure and increase banking access for the adult population. The Raast-Buna integration is the result of aMemorandum of Understanding (MoU)signed in November 2023 between the SBP and the AMF. A key feature of this collaboration is the inclusion of the Pakistani Rupee as a settlement currency on the Buna platform, enabling swift, low-cost transfers for Pakistanis living in the Arab region. With over 5 million Pakistanis residing in the Middle East and the Gulf countries accounting for 55% of Pakistan’s total remittances, this initiative is expected to significantly boost the country’s foreign exchange inflows. The SBP aims to reduce the time and costs associated with cross-border transfers, thereby enhancing trade and economic collaboration between Pakistan and the Arab world. This initiative is expected to open new avenues for businesses, increase remittance flows, and strengthen financial ties between the two regions. In addition to the Raast Cross Border Payments, the SBP is actively working to expand digital payment options for Pakistanis. One of the central bank’s key objectives is to enable e-wallet holders in Pakistan to make direct payments in China through online banking channels. This effort is part of the SBP’s broader initiative to foster regional financial connectivity and improve access to financial services. Aligning with its vision for a more inclusive financial ecosystem, the SBP has announced the launch of the National Financial Inclusion Strategy (NFIS) 2028. This strategy aims to extend formal financial services to 75% of Pakistan’s adult population, up from the current 60%. A central focus of NFIS 2028 is to promote financial inclusion for women, targeting that 25% of all users be female by 2028. The SBP is also developing a Financial Inclusion Index, which will provide a comprehensive overview of the financial inclusion landscape in Pakistan. This index will measure key parameters such as access, usage, and the quality of financial services. The introduction of the index will enable informed, evidence-based policymaking and accurately reflect the progress being made in financial inclusion. With the launch of Raast Cross Border Payments and the ongoing digital initiatives, Pakistan is taking bold steps to enhance regional financial connectivity. Together with the upcoming NFIS 2028, these efforts will play a crucial role in driving inclusive economic growth, expanding access to financial services, and fostering innovation in the financial sector.