Pakistan working with AMF to introduce cross-border payment system

KARACHI: Pakistan is working with the Arab Monetary Fund (AMF) to introduce a cross-border payment system.

This was announced by State Bank of Pakistan (SBP) Deputy Governor Saleem Ullah on Monday. The top official expressed these views while talking to media at the  5th DigiBap Summit 2024.

Saleemullah said Pakistan was working to develop to a formal remittance system for expatriates in collaboration with the AMF. The service, Buna, is expected to come to roll out next year and would reduce transaction charges for remittance sender overseas Pakistanis, he said.

Moreover, the SBP deputy governor said they had consulted with the International Monetary Fund (IMF) and the World Bank on the possibility of a digital currency for Pakistan.

“We are currently evaluating the benefits of a digital currency for Pakistan,” said Saleem Ullah without providing any timeline for its launch.

He further stated that RAAST payment system was a very successful initiative in achieving multiple goals while enabling users to make instant payments.

Earlier, Saleem Ullah said that ease in access to finance for the SME sector is the priority area for the government and all banks need to create the requisite infrastructure and systems to extending digital financing solutions for supply chains of SMEs.

He lamented that currently less than 5% of commercial funding is extended to the crucial SME sector. “For this, we need to accept SMEs as a profitable business segment,” he added.

Saleem Ullah asked private banks to develop their working plans to this end and share those plans with SBP.