Pakistan has taken a significant step toward regional digital financial integration by announcing the integration of its digital payment system with the Arab Monetary Fund’s Buna platform. This arrangement, disclosed during a National Assembly Standing Committee on Finance meeting chaired by Syed Naveed Qamar, will facilitate cross-border transactions, enabling inflows from overseas Pakistanis, while outward transfers remain excluded. The move is expected to enhance the speed, security, and convenience of remittances for the Pakistani diaspora, strengthening the digital financial ecosystem.
Governor of State Bank of Pakistan Jameel Ahmed briefed the committee on the rapid growth of digital payments since Raast’s launch, noting that annual transaction volumes which initially hovered around Rs1 trillion now cross the same milestone in just nine days. He explained that Buna, launched in 2020, is a multi-currency cross-border platform allowing financial institutions to send and receive payments in Arab and international currencies. Currently, it supports currencies such as Saudi Riyal and Emirati Dirham, with plans to expand to other currencies including the Chinese Yuan, enhancing regional economic integration and facilitating cross-border trade.
During the session, Minister of State for Finance Bilal Azhar Kayani stated that the government will absorb costs associated with digital transactions to encourage adoption, making Pakistan one of the first countries in the region to implement such a comprehensive digital ecosystem. Finance Secretary Imdadullah Bosal added that payments for salaries, pensions, taxes, and utility bills will gradually transition to a cashless system. SBP clarified that banks will not cover user errors in digital transactions, but any losses due to fraud or system errors will be compensated by service providers if complaints are lodged within two hours. Deputy Governor SBP Saleem Ullah highlighted that Pakistan currently has 95 million active mobile banking users, 226 million bank accounts, 19,000 branches, 20,000 ATMs, and 850,000 QR merchants, while cashless transactions will remain free for consumers, including offline channels that do not require internet connectivity.
The committee raised concerns about the digital ecosystem’s effectiveness, noting that approximately 50 percent of Pakistan’s economy remains undocumented. Members also highlighted challenges posed by slower internet services, which could impede the adoption of a cashless economy. Alongside digital payments, the session reviewed the Corporate Social Responsibility (CSR) Bill, with SECP reporting that in 2024, 315 companies carried out CSR activities spending Rs22 billion, while 100 companies reported no expenditure. Members suggested making CSR mandatory and formed a subcommittee for further discussion. In parallel, Pakistan is preparing to repay a $500 million Eurobond by September 30, 2025, coinciding with IMF Extended Fund Facility review talks. The government plans additional international bond issuances, including Panda bonds in China, to manage external debt obligations while supporting financial stability.
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