Page 11 - CMA Journal (Jan-Feb 2026)

Exclusive Interview

ICMA: Scaling digital payments across Pakistan is
challenging. What do you see as the biggest hurdles,
and how is SBP tackling them? SBP is working with the
industry to expand Raast QR
Deputy Governor: As per our analysis, major barriers are
limited digital and financial literacy, uneven access to
reliable internet and smartphones particularly in rural acceptance, particularly among
and underserved areas, and high cash reliance due to
cultural reasons. In addition, small merchants often small retailers and merchants.
perceive digital payments as offering limited immediate There are other ongoing
value relative to cash, and concerns over documentation
and tax compliance also seem to slow the digitalization enhancements to Raast to
process.
facilitate inclusion of
SBP is working on addressing these challenges through a
multi-pronged approach. This includes increasing the government payments, salaries
adoption of Raast to enable low-cost, interoperable
person-to-person and merchant payments; promoting and social transfers
merchant digitalization through simplified onboarding
frameworks; and enabling digital account opening and
tiered KYC to reduce access barriers. creation of an enabling environment for virtual assets in
Pakistan. SBP, along with major stakeholders, is providing
SBP is also working closely with the industry to improve
necessary support to PVARA in the development of
reliability, user experience and acceptance
policies and regulations. This collaboration aims to
infrastructure, while supporting public awareness and
achieve the objectives of financial and monetary
financial literacy initiatives to drive trust and usage.
stability, as well as the broader goal of sustainable
Collectively, these measures aim to move digital
economic growth.
payments from niche use cases to everyday transactions
across Pakistan, and encouraging results from these Through enabling regulations, interoperability initiatives
efforts are already visible in the digital payments such as Raast, and strengthened oversight of service
landscape. providers, SBP aims to ensure innovation translates into
safe, affordable, and inclusive financial access for
ICMA: Digital financial services are reaching more
underserved communities.
people than ever. How have they helped underserved
communities access tools like digital wallets or ICMA: The regulatory sandbox has sparked fintech
digital tokens? innovation. Which tested idea excites you most and
could shake up traditional banking?
Deputy Governor: Digital financial services have played
a critical role in expanding access to formal financial Deputy Governor: From SBP’s standpoint, the
services, particularly for underserved and previously regulatory sandbox will be valuable in testing
unbanked segments. innovations that address real market frictions rather than
pursuing disruption for its own sake. Among the most
The branchless banking accounts and Electronic Money
promising ideas are digitally enabled inward remittance
Institution (EMI) wallets have significantly lowered entry
solutions that combine fintech agility with bank-led
barriers by enabling remote onboarding, simplified
settlement and compliance. These models have
documentation, and low-cost account maintenance. This
demonstrated the potential to reduce costs, improve
has been especially impactful for low-income households,
speed and transparency, and broaden access for
women, and residents of remote areas who previously
beneficiaries, particularly IT exporters and freelancers. By
faced constraints such as distance, cost, or documentation
integrating digital channels, real-time settlement, and
in accessing traditional banking channels.
simplified customer journeys, such solutions can
Government-to-person (G2P) payments and social meaningfully improve user experience while remaining
transfer programs delivered through digital channels within a regulated framework.
have further accelerated adoption by providing a first
More broadly, what excites SBP is not a single product
trusted use case for digital accounts.
but the collaborative model emerging from the sandbox,
Regarding digital assets, a dedicated regulatory where fintechs partner with banks to deliver scalable,
authority, namely Pakistan Virtual Assets Regulatory compliant innovations.
Authority (PVARA), has been working to support the

ICMA’s Chartered Management Accountant, Jan-Feb 2026 9