SBP has made a significant leap in regional financial connectivity by enabling Raast Cross Border Payments With Arab Countries. This initiative, announced by SBP Governor Jameel Ahmed, marks a major achievement in Pakistan’s journey toward digital financial integration.
The integration of Raast Cross Border Payments With Arab Countries allows seamless financial transactions in Pakistani rupees between Pakistan and Arab nations, a first of its kind for the region. This development comes through Pakistan’s instant payment system, Raast, which has been integrated with the Arab Monetary Fund’s Buna platform. Buna is a cross-border payment system designed to promote financial stability and trade cooperation between Arab countries and their international partners.
By enabling transactions through Raast Cross Border Payments With Arab Countries, the SBP aims to reduce the time and costs associated with cross-border transfers, 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.
Key Benefits of Raast Integration with Arab Countries
- Cost-Efficiency: Transactions via Raast are expected to be more cost-effective than traditional cross-border payment systems, providing significant savings for businesses and individuals.
- Faster Transactions: Payments processed through Raast are instant, eliminating delays that typically occur with cross-border financial transfers.
- Secure and Reliable: Raast offers a secure and transparent platform for making transactions, ensuring protection against fraud and unauthorized access.
Expanding Digital Financial Inclusion and Connectivity
Alongside the integration of Raast Cross Border Payments With Arab Countries, the SBP is also 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 is part of the SBP’s broader effort to foster regional financial connectivity, promote digitalization, and improve access to financial services.
In line with the SBP’s vision for a more inclusive financial ecosystem, the central bank announced the launch of the National Financial Inclusion Strategy (NFIS) 2028. This strategy is designed to extend formal financial services to 75% of Pakistan’s adult population, up from the current 60%. A key focus of NFIS 2028 is promoting financial inclusion for women, with a target that 25% of all users be female by 2028.
The NFIS 2028 strategy aims to:
- Increase the availability and usage of secure and accessible digital financial services.
- Strengthen the financial ecosystem for priority sectors such as SMEs, housing, agriculture, and microfinance.
- Enhance financial literacy and digital access for underserved communities, particularly women, youth, and disabled individuals.
- Pakistan’s Financial Inclusion Index: Measuring Progress
In addition to NFIS 2028, the SBP is also developing a Financial Inclusion Index. This index will provide a comprehensive overview of the financial inclusion landscape in Pakistan, measuring key parameters such as access, usage, and the quality of financial services. The introduction of the index will enable more informed, evidence-based policymaking and offer an accurate reflection of the progress being made in financial inclusion.
Also Read: SBP Launches ‘Performance-Based Rewards’ for Banks
With the launch of Raast Cross Border Payments With Arab Countries, Pakistan is taking a bold step toward enhancing its regional financial connectivity. This, combined with the SBP’s broader digital initiatives and the upcoming NFIS 2028, will play a crucial role in driving inclusive economic growth, expanding access to financial services, and fostering innovation in the financial sector.
