instant funds tranfer b/w Gulf region and Pakistan within 8 months : SBP

Pakistani instant payment system Raast, to be integrated with Buna, a cross-border payment system of the Arab Monetary Fund (AMF) within six to eight months, SBP governor Jameel Ahmad informed the media.

Governor State Bank of Pakistan (SBP), Mr. Jameel Ahmad said, “The biggest benefit of this integration will be instant transfer of funds from any member country of the Arab Monetary Fund, and secondly at a low cost, these are the two key benefits but there are also other benefits, including security of the funds.”

The integration of real-time payment systems will facilitate Pakistani workers living in the Gulf region, including Saudi Arabia and the United Arab Emirates (UAE) that are one of the major contributors to the remittance inflows to Pakistan.

This initiative will benefit individuals as well as businesses not only through instant, safe and cost-effective cross border payments, but also by strengthening economic, financial, and investment ties between the Arab countries and Pakistan.

Bankers and currency experts believe that Raast and Buna integration would help Pakistan bring most of the inflows through the banking channels.

In FY23, Pakistan received $27.3 billion in remittances compared to $31.2bn in FY22, showing a shortfall of $4.2bn.Saudi Arabia and the UAE provided employment to 77 percent of the Pakistani expatriate workers in 2022.