Page 15 - Payment System Review -Q2 FY24

Major Developments

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During the 2 quarter of FY24, notable developments have enhanced the payment system landscape
of Pakistan, introducing developments that contribute to increased efficiency and accessibility in
financial transactions. These developments are summarized as follows:

1. Launch of Raast Person to Merchant (P2M) Service:

SBP has enabled interoperable Raast P2M service to facilitate digital payment acceptance for
merchants and businesses. Raast is an instant payment system of Pakistan and is operated by SBP. The

first two use cases of Raast were bulk payments and Person-to-Person (P2P) funds transfer facility.
Raast P2M service is the third use case which will accelerate the pace of digitization of merchant and

business transactions in Pakistan conducted through mobile apps, internet banking portals and USSD
channels. Further details on Raast P2M, issued vide at PSP&OD Circular No. 4 of 2023, is accessible

through the link: https://www.sbp.org.pk/psd/2023/C4.htm

2. Entrance of a new EMI in Digital Landscape:
During the quarter, a new EMI; Akhtar Fuiou Technologies Pvt. Ltd. was granted license for commercial

operations specifically aiming to build digital payment platform for agri-economy. It is expected that
the financial inclusion will be further increased with the addition of new EMI in the digital landscape

of Pakistan.

3. AMF and SBP collaboration for Cross-border payments:

In November, 2023, the Arab Monetary Fund (AMF) and the SBP signed an MoU to establish a
framework of cooperation between Buna, the cross-border payment system operated by Arab
Regional Payments Clearing and Settlement Organization (ARPCSO), owned by AMF, and Raast,

Pakistan’s Instant Payment System. The integration of Raast with Buna aims to facilitate Cross-border

Remittances between the Arab region and Pakistan through formal channels. 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.

4. Standardization of Purpose List for Domestic Electronic Fund Transfers:

In order to standardized the list of purposes for electronic funds transfer across internet and mobile
banking channels of all regulated entities (banks, MFBs, EMIs, PSOs and PSPs) and to provide

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