State Bank of Pakistan (SBP) has enabled payments in Pakistani rupees between Pakistan and Arab countries.
On Friday, Governor SBP Jameel Ahmed announced that Pakistan is integrating Raast, Pakistan’s instant payment system, with the Arab Monetary Fund’s Buna platform.
Additionally, the SBP enhances financial connectivity by facilitating direct payments from e-wallet holders in Pakistan to China via online banking. This effort is part of a broader initiative to promote digitalization across regional financial transactions.
During this fiscal year, the SBP also plans to introduce the third National Financial Inclusion Strategy (NFIS) for 2024-2028. The goal is to expand banking services to 75% of the adult population, up from 60%, with a specific target of 25% female users by 2028.
Governor Ahmed highlighted these developments in the Governor’s Annual Report for 2023-24. He stated, “The integration of Raast with the Buna system marks a pivotal step in including the Pakistani rupee as a settlement currency in cross-border payments.”
He also noted the approval of a cross-border partnership between Pakistani and Chinese financial entities, which will allow e-wallet users in Pakistan to make purchases in China within set annual limits.
Following the successful completion of NFIS 2018-2023, the upcoming NFIS aims to leverage digital technology to enhance the accessibility, use, and quality of financial services, addressing persistent challenges in digital financial inclusion.
The NFIS 2028 strategy will focus on improving digital financial services, fostering priority sector financing, and enhancing the capabilities of financial institutions and consumers. It aims to boost financial inclusion for women, youth, and disabled individuals in underserved areas.
NFIS 2028 will introduce specific measures to transform financing in sectors such as SMEs, housing, agriculture, microfinance, and sustainable finance to support inclusive growth. These efforts are intended to enhance the livelihoods of low-income and marginalized groups.
The SBP is also developing a financial inclusion index to measure and reflect Pakistan’s true financial inclusion state. Based on access, usage, and quality, this index will guide policymaking and be published annually.
Additionally, the SBP launched the Electronic Warehouse Receipt Financing (EWRF) for maize and rice in 2022, facilitating financing against stored commodities. In FY24, banks disbursed Rs1,891 million under EWRF, exceeding the year’s target.
Regarding agricultural risk mitigation, the government supports insurance premiums for eligible crop loans through banks and microfinance banks covering key crops.
The Livestock Insurance Scheme for Borrowers also enables small farmers to insure up to 10 animals, with substantial insurance claims processed between July 2014 and December 2023.
