Exchange companies in Pakistan allowed to process home remittances through Raast
Pakistan’s central bank has allowed exchange companies to process home remittances through its instant digital payment system, Raast, as the country’s foreign exchange reserves recorded a slight increase during the past week.
In a statement issued on Thursday, the State Bank of Pakistan (SBP) said total liquid foreign reserves stood at $21.25 billion as of January 9, with the central bank’s own holdings rising by $16 million to $16.07 billion.
The SBP said the inclusion of exchange companies in Raast is aimed at expanding digital transactions, improving the efficiency of remittance inflows, and supporting Pakistan’s transition toward a cashless economy.
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“Building an innovative and inclusive digital financial services ecosystem is one of the key objectives of the State Bank of Pakistan under its Strategic Plan 2023–2028,” the central bank said.
“As part of this vision, SBP has now allowed Exchange Companies to utilize Raast, a state-of-the-art payment system launched in 2021, to facilitate remitters and beneficiaries of home remittances,” it added.
Raast is a real-time payment platform that enables instant, low-cost transfers among banks, microfinance institutions, and electronic money wallets. Under the new arrangement, recipients of remittances sent through exchange companies will be able to receive funds directly into their bank accounts or digital wallets in a secure and efficient manner.
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Pakistan depends heavily on remittances from overseas workers and has been working to route more inflows through formal financial channels. By strengthening digital and regulated payment systems, authorities aim to reduce reliance on informal transfer networks such as hawala and hundi, which operate outside the banking system.
Source: Arab News