Pakistan has decided to integrate its national digital payment system, Raast, with the Buna platform, an Arab payment system operated by the Arab Monetary Fund (AMF). This move will facilitate cross-border transactions, specifically allowing inflows from overseas Pakistanis.
At a meeting of the National Assembly Standing Committee on Finance, State Bank of Pakistan (SBP) Governor Jameel Ahmed highlighted the rapid growth of the digital payment system. He noted that while Raast initially handled around Rs1 trillion in transactions annually, that same volume is now processed in just nine days.
Buna, launched in 2020, is a multi-currency platform designed to enable secure and fast payments between financial institutions across the Arab world and beyond. The SBP Governor stated that this new arrangement will make remittances more efficient. He also announced that by 2028, the government aims to provide 75% of Pakistan’s youth with access to digital financial services, with a goal of introducing a cashless economy at federal and provincial levels by June 2026.
According to Minister of State for Finance Bilal Azhar Kayani, the government will absorb the cost of these digital transactions to encourage widespread adoption, a step that makes Pakistan one of the first countries in the region to establish such an ecosystem. Salaries, pensions, and utility bills will be gradually shifted to the cashless system. The SBP clarified that while banks won’t compensate for user errors, losses from fraud or system errors will be covered by service providers if reported within two hours.
The committee also discussed other financial matters, including the Corporate Social Responsibility (CSR) Bill. The SECP Chairman reported that in 2024, 315 out of 447 companies conducted CSR activities, spending Rs 22 billion. A penalty of Rs 1 billion has been set for firms that fail to disclose their CSR activities, and members of the committee suggested making CSR spending mandatory.
Debt Repayments and Economic Strategy
In a related development, Pakistan is preparing to repay a $500 million Eurobond maturing on September 30, 2025. This coincides with a visit from the IMF for the second review under its Extended Fund Facility (EFF). SBP Governor Jameel Ahmed assured reporters that the repayment will not strain the country’s foreign exchange reserves.
To manage its increased external debt obligations of $26 billion for the 2025-26 fiscal year, Pakistan plans to re-enter the international capital market. The country intends to issue international bonds, including Panda bonds in the Chinese market, with the first transaction expected to be worth $200-$250 million by December 2025. This strategy is being pursued as the launch of a new Eurobond or Sukuk is unlikely due to market demand and the need for improved credit ratings.
