Arab Monetary Fund and State Bank of Pakistan sign MoU to facilitate
cross-border remittances
In a significant development, the Governor of the State Bank
of Pakistan, Jameel Ahmad, and the Director General Chairman of the Board of
the Arab Monetary Fund, Dr. Abdulrahman Bin Abdullah Al Hamidy, signed a
Memorandum of Understanding (MoU) in Abu Dhabi on November 3, 2023. This MoU
establishes a cooperative framework for an instant cross-border payment system,
ultimately enhancing the efficient flow of remittances.
This initiative holds immense importance as a substantial
number of Pakistanis, employed across various sectors in the Middle East,
including construction, services, healthcare, and IT, contribute significantly
to Pakistan's economy by sending substantial remittances.
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The Arab Monetary Fund (AMF), established in 1976, comprises
key members such as Saudi Arabia and the UAE and is dedicated to promoting
financial cooperation and market development in the Arab region.
The MoU sets the stage for the integration of Pakistan's
Raast instant payment system with the Buna platform of the Arab Regional
Payments Clearing and Settlement Organization (ARPCSO).
Dr. Abdulrahman Bin Abdullah Al Hamidy, Director General
Chairman of the Board of the AMF and Chairman of the Board of ARPCSO,
emphasized the strategic significance of this collaboration with Raast, stating
that it underlines Buna's commitment to connecting different regions and
strengthening economic, financial, and investment ties between the Arab region
and its global partners. He also highlighted the shared vision of innovating
cross-border payment solutions to provide secure and efficient access for
cross-border instant payments for individuals and businesses.
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Al Hamidy further shared that the aim of this collaboration
is to increase cross-border remittances by reducing costs and processing times,
thus reinforcing the global nature of the Buna platform.
The Governor of the State Bank of Pakistan described the MoU
as a "significant strategic achievement" and expressed optimism about
the prospects it holds for enhancing the connection between Pakistan and the
Arab region. He explained that this collaboration aligns with their vision to
leverage cross-border integrations in building an innovative Digital Financial
Services ecosystem.
The integration of the two payment systems is expected to
boost remittances to Pakistan through formal channels, offering improved speed,
safety, and cost savings for cross-border transactions. With over 5 million
Pakistanis residing in the Arab region and approximately 55 percent of
Pakistan's total remittances originating from Arab countries, the State Bank of
Pakistan is committed to expeditiously operationalizing the connectivity
between Raast and Buna.
Source: https://www.arabnews.pk/