Pakistan joins Arab payments platform
in landmark integration
Pakistan has formally decided to
link its digital payment system with the Arab Monetary Fund’s (AMF) Buna
platform, enabling cross-border transactions aimed primarily at remittances
from overseas Pakistanis. Outward transfers will not be permitted under the
arrangement.
The development was shared during a
meeting of the National Assembly Standing Committee on Finance, chaired by Syed
Naveed Qamar, at an IT park in Islamabad on Thursday.
State Bank of Pakistan (SBP)
Governor Jameel Ahmed told lawmakers that Pakistan’s digital payment ecosystem
had expanded rapidly. “When Raast was launched, annual digital transactions
were around Rs1 trillion. Today, the same figure is achieved every nine days,”
he said.
Buna platform
Buna, launched in 2020 by the AMF, is a cross-border, multi-currency system
that supports payments in regional and international currencies, including the
Saudi Riyal and Emirati Dirham. Plans are underway to add more currencies, such
as the Chinese Yuan, to further boost trade and financial integration.
Read More SBP
announces Raast and Buna integration for Gulf remittances in 8 months
According to the SBP, connecting with Buna will make remittances faster, cheaper, and more secure. By June 2026, the central bank aims to roll out a nationwide cashless economy, while by 2028 it targets bringing 75% of Pakistan’s youth into the digital financial system.
So far, five licences for digital
payments have been issued. The government will absorb the 0.5% merchant fee to
encourage adoption. Salaries, pensions, taxes, and utility bills are also set to
gradually shift to digital payments, Finance Secretary Imdadullah Bosal
confirmed.
System safeguards and challenges
Deputy Governor SBP Saleem Ullah highlighted that Pakistan already has 95
million active mobile banking users, 226 million bank accounts (96 million
unique), 19,000 branches, 20,000 ATMs, and 850,000 QR-enabled merchants. He
also noted that USSD channels will allow payments without internet access.
On transaction security, the SBP
clarified that banks will not cover losses from user mistakes, but fraud- or
system-related losses will be compensated by service providers if reported
within two hours.
Read More Arab
Monetary Fund and State Bank of Pakistan sign MoU to facilitate cross-border
remittances
Committee members raised concerns about the digital ecosystem’s effectiveness. Naveed Qamar pointed out that “50% of Pakistan’s economy is undocumented,” stressing the need for offline transaction solutions. Hina Rabbani Khar questioned how a cashless economy could succeed given frequent internet disruptions.
CSR and other matters
The committee also reviewed the Corporate Social Responsibility (CSR) Bill.
SECP Chairman said 315 out of 447 companies reported CSR spending worth Rs22
billion in 2024, while others failed to disclose or spend. Lawmakers suggested
making CSR mandatory, forming a sub-committee for further deliberation.
Separately, SBP Governor Jameel
Ahmed confirmed Pakistan is ready to repay a $500 million Eurobond maturing on
September 30, without straining foreign reserves. With $26 billion in external
debt obligations for FY2025-26, Pakistan is also preparing to issue Panda bonds
in China by December 2025, raising $200–250 million in the first tranche.
Read More SBP
launches highly anticipated Raast Person-to-Merchant (P2M) Service
Two major Eurobond maturities lie ahead: $500 million in September 2025 and $1 billion in April 2026. Officials indicated that future issuances of Eurobonds or Sukuk will depend on improved credit ratings and investor demand.
Source: Geo News