Pakistan Links Raast With Buna For Remittances
Pakistan Joins Buna Platform For Digital Remittances after the State Bank of Pakistan (SBP) confirmed the integration of its local digital system Raast with the Arab Monetary Fund’s Buna network. The announcement was made during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar.
SBP Governor Jameel Ahmed clarified that only inflows from overseas Pakistanis will be facilitated, while outward transfers will not be allowed under this arrangement.
Rapid Growth Of Digital Transactions In Pakistan
When Raast was launched, it processed Rs 1 trillion worth of transactions annually. Now, the same volume is being achieved in just nine days. This remarkable growth was highlighted to demonstrate why Pakistan joins the Buna Platform for Digital Remittances at this crucial stage.
What Is The Buna Payment System?
Buna is the cross-border, multi-currency payment platform operated by the Arab Monetary Fund. It was launched in 2020 and has been supporting currencies such as the Saudi Riyal and Emirati Dirham. Plans have been revealed for the inclusion of the Chinese Yuan to boost regional trade.
With Pakistan’s joining the Buna Platform for Digital Remittances, faster, safer, and more transparent remittances will be enabled for overseas Pakistanis.
Government Payments To Be Fully Digitised By 2026
It was announced that Pakistan will digitise all government payments, including those of federal and provincial departments, by June 2026. State-owned enterprises (SOEs) will be shifted to the digital system by December 2026. Salaries, pensions, taxes, and utility bills will also be processed digitally.
Minister of State for Finance Bilal Azhar Kayani stated that the government will bear transaction costs to encourage adoption. By ensuring Pakistan joins the Buna Platform for Digital Remittances, the government aims to accelerate the transition toward a cashless economy.
SBP Roadmap For A Cashless Economy
Deputy Governor Saleem Ullah informed the committee that Pakistan currently has 95 million active mobile banking users, 226 million bank accounts, 19,000 bank branches, and 20,000 ATMs. Additionally, 850,000 QR-enabled merchants are already operational.
Offline transaction support has been promised, so even without internet access, payments will be processed. Losses due to fraud or system errors will be compensated by service providers if complaints are lodged within two hours.
Concerns Raised By Parliamentarians
Committee members voiced concerns over the effectiveness of the digital ecosystem. Since nearly 50% of Pakistan’s economy is undocumented, questions were raised about the transition to a fully cashless system.
MNA Hina Rabbani Khar questioned how Pakistan’s joining the Buna Platform for Digital Remittances could succeed when internet disruptions remain frequent. She stressed the need for strong offline transaction mechanisms.
Pakistan Positions Itself As Regional Leader
With this integration, Pakistan joins the Buna Platform for Digital Remittances and becomes one of the first regional countries to partner with the AMF’s platform. This move positions Pakistan as a leader in secure cross-border transactions while ensuring that remittance inflows from overseas Pakistanis are more efficient and transparent.
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