Pakistan has finalized its decision to integrate its digital payment system with the Arab world’s Buna platform, a regional initiative run by the Arab Monetary Fund (AMF), The News reported.
Under this arrangement, the system will support cross-border transactions but will only facilitate inflows from overseas Pakistanis, with no facility for outward transfers.
The development was revealed during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, held at an IT park in Islamabad on Thursday.
SBP Confirms Integration with Buna
State Bank of Pakistan (SBP) Governor Jameel Ahmed briefed the committee that when the country’s digital payment system Raast was first launched, annual transactions were around Rs1 trillion. Now, that same figure is surpassed in just nine days, highlighting rapid adoption.
Explaining the Buna platform, he said it is a multi-currency, cross-border payment system launched in 2020 and owned by the AMF. The platform enables regional financial institutions to send and receive payments in both Arab and international currencies. Presently, it supports the Saudi Riyal and Emirati Dirham, with plans to expand and include other currencies like the Chinese Yuan to strengthen regional economic and trade integration.
According to the SBP governor, the new arrangement will make remittances quicker, cheaper, and more secure. He also shared that by 2028, the aim is to ensure that 75% of Pakistan’s youth have access to digital financial services, while a cashless economy will be implemented nationwide across federal and provincial levels by June 2026.
The SBP has already issued five licenses for digital payment operators, with digital transactions exempt from the 0.5% merchant fee, he added.
Government to Absorb Digital Payment Costs
Minister of State for Finance Bilal Azhar Kayani informed the committee that the government would absorb the cost of digital transactions to encourage adoption. He emphasized that Pakistan would be among the first countries in the region to implement a comprehensive digital ecosystem.
Finance Secretary Imdadullah Bosal further briefed the members that the system would eventually cover salaries, pensions, taxes, and utility bills.
However, SBP clarified that in cases of user error, banks would not compensate customers. Losses due to fraud or system glitches, however, will be covered by service providers provided that complaints are registered within two hours.
Deputy Governor Saleem Ullah highlighted Pakistan’s digital landscape:
- 95 million active mobile banking app users,
- 226 million bank accounts (96 million unique accounts),
- 19,000 bank branches,
- 20,000 ATMs,
- 850,000 merchants using QR payments.
He added that USSD channels would allow transactions without internet, ensuring inclusion, while users will not be charged for cashless payments.
During the session, committee chair Syed Naveed Qamar expressed concern that nearly 50% of Pakistan’s economy remains undocumented, which could undermine the effectiveness of a digital ecosystem. Hina Rabbani Khar also raised the issue of weak internet infrastructure, asking how the government plans to promote cashless systems amidst frequent disruptions.
CSR Bill Under Review
The committee also reviewed the Corporate Social Responsibility (CSR) Bill. SECP Chairman informed members that in 2024, 315 of 447 companies undertook CSR activities, collectively spending Rs22 billion. However, 199 firms did not share details, while 100 spent nothing at all.
He clarified that CSR is not yet mandatory, though firms must disclose their activities, with a Rs1 billion penalty for non-disclosure. Some members suggested making CSR spending mandatory, leading to the formation of a sub-committee to deliberate further.
Meanwhile, FBR Chairman Rashid Langrial noted that CSR activity is growing primarily due to tax credits, as charitable spending remains tax-exempt.
Concerns Over National EV Policy
The finance committee also expressed dissatisfaction with the National Electric Vehicle Policy 2025-30. It summoned officials from the Ministry of Industries and Production to give a more detailed briefing in the next meeting.
Pakistan Prepares for Eurobond Repayment Amid IMF Talks
In another key update, Pakistan announced readiness to repay a $500 million Eurobond due on September 30, 2025, coinciding with the visit of the IMF mission for the second review under the Extended Fund Facility (EFF).
“We have made arrangements to repay the $500 million Eurobond by September 30, and this repayment will not strain foreign exchange reserves,” Governor Jameel Ahmed told journalists after the committee session.
Senior officials indicated that this assurance means Islamabad is either expecting fresh foreign inflows or that SBP will continue purchasing dollars from the open market.
Of the $26 billion in external debt repayments due in FY2025-26, $3.5 billion has already been cleared. Roughly $9 billion of the remaining liabilities are deposits from friendly nations, expected to be rolled over.
To manage these obligations, Pakistan plans to re-enter the international capital market, with the issuance of Panda bonds in the Chinese market expected by December 2025. The initial transaction may raise between $200–$250 million.
However, the issuance of new Eurobonds or Sukuk bonds will depend on market appetite and improvements in Pakistan’s international credit ratings.
The next big repayment due is the $1 billion Eurobond maturing in April 2026, originally issued in April 2021 with a five-year term at 6% interest. Another $1 billion bond maturing in 2031 carries a 7.3% rate, while a bond issued in January 2022 for $1 billion is set to mature in 2029.
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