SBP announces Raast and Buna integration for Gulf remittances
in 8 months
Pakistan's instant payment system, Raast, is set to be
integrated with Buna, the cross-border payment system of the Arab Monetary Fund
(AMF), within the next eight months. This integration aims to facilitate
real-time remittances between Pakistan and the Gulf region, as revealed by the
chief of the Pakistani central bank to Arab News.
Earlier in the month, the AMF and the State Bank of Pakistan
(SBP) signed a memorandum of understanding (MoU) in Abu Dhabi to establish a
cooperative framework between Buna, operated by the Arab Regional Payments
Clearing and Settlement Organization (ARPCSO), and Pakistan's Raast.
Arab
Monetary Fund and State Bank of Pakistan sign MoU to facilitate cross-border
remittances
Jameel Ahmad, the SBP governor, stated that the integration
target for Raast and Buna is within six to eight months. This collaboration
aims to enhance cross-border remittances between the Gulf region and Pakistan
through formal channels, benefiting individuals and businesses with instant,
secure, and cost-effective cross-border payments. Additionally, it is expected
to strengthen economic, financial, and investment ties between Arab countries
and Pakistan.
“The biggest benefit of this integration will be an instant
transfer of funds from any member country of the Arab Monetary Fund, and
secondly at a low cost,” Ahmad highlighted. “These are the two key benefits but
there are also other benefits, including security of the funds.”
The integration will particularly assist Pakistani workers
in the Gulf region, including major contributors like Saudi Arabia and the
United Arab Emirates (UAE). These countries employed 77 percent of Pakistani
expatriate workers in 2022.
SBP
unveils ambitious five-year blueprint for sharia-compliant banking system
Governor Ahmad, speaking at an event, emphasized expanding
financial services access for underserved segments, especially women, as a
strategic priority for the next five years. He noted the negative effects of a
lack of financial inclusion, such as high cash usage and reliance on informal
savings and borrowing networks.
The SBP Vision 2028 aims to increase bank account coverage
to 75 percent of the adult population and improve the quality of financial
services for various segments, including low-income individuals, small and
medium enterprises, and farmers.
Ahmad also underscored the importance of financial stability
and technology, stating that a resilient financial system is crucial for
macroeconomic stability and sustainable economic growth. He highlighted the
need for adaptation to emerging risks from climate change and cybersecurity,
with the SBP Vision 2028 focusing on enhancing banks' capacity to manage such
shocks.
SBP
initiates plans for the establishment of regulatory sandboxes and innovation
offices
Technology was emphasized as a key enabler for financial
inclusion, with Ahmad citing SBP initiatives like the introduction of the
instant payments system Raast, the regulatory framework for digital banks, and
the digital onboarding framework in collaboration with the National Database
and Registration Authority (NADRA). These efforts align with the SBP's goal of
promoting the digitization of financial services and payment systems.
Source: The News