Pakistan plans to enable live transactions between its Raast instant payment system and the Arab Monetary Fund (AMF) Buna platform in 2027, aiming to cut the time and cost of Gulf remittances, a critical source of foreign exchange. System design and vendor onboarding are complete, and the central bank is now implementing the hardware and software, the State Bank of Pakistan (SBP) said.
The central bank described integrating payment systems as a complex undertaking that requires extensive coordination, new infrastructure, and changes to existing systems, policies, and procedures. Buna, launched by the AMF in 2020, is used by financial institutions in the Arab region to send and receive payments.
Raast is Pakistan's instant payment system, which lets users send and receive payments using phone numbers as aliases, without the hassle of remembering long account numbers or International Bank Account Numbers (IBANs). The SBP initiated the project to facilitate inward home remittances, signing a memorandum of understanding in Abu Dhabi in November 2023, with the project launched in Islamabad in 2024.
"Buna and Raast systems are based on ISO 20022 standards and have similar technology stacks. It is envisaged that the interlinking will greatly facilitate customers in both regions," the SBP said.
"This interlinking will create a single technical corridor for financial institutions in the Arab region and Pakistan to efficiently send and receive funds," it added. Remittances are a pillar of Pakistan's external stability.
Inflows reached a record $41.6 billion in the fiscal year ended June 2026, with about 54.1 percent coming from the Gulf Cooperation Council (GCC) region. The central bank expects remittances to climb to $44 billion in the current fiscal year.
Furrukh Zaeem, group head for treasury and international at JS Bank Limited, said the Raast connectivity would be a "major structural advancement" for Pakistan's remittance landscape. "Linking these central clearing frameworks allows cross-border transfers to move from legacy correspondent banking channels to real-time, low-cost digital corridors," Zaeem said.
"This shift enhances cost competitiveness against informal remittance channels, drives foreign exchange into formal banking channels, and furthers financial inclusion." Regarding Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) compliance, Zaeem noted that banks must deploy high-speed automated compliance engines to manage real-time, automated screening for sanctions and politically exposed persons (PEPs).