Page 8 - CMA Journal (July-August 2025)

Exclusive Interview

On the other, our regulations for remote account
opening, shared eKYC, and technology risk management
pave the way for responsible innovation that promotes In recent years, Pakistan’s digital
convenience while ensuring consumer protection and
necessary safeguards. The rollout of QR-based payments finance landscape has seen rapid
via Raast will further reduce the cost of digital evolution. With rising adoption
transactions for merchants and retailers, expanding the
reach and utility of digital payments. In recent years, and accessibility, digital payment
Pakistan’s digital finance landscape has seen rapid
evolution. With rising adoption and accessibility, digital channels are becoming the
payment channels are becoming the preferred choice for preferred choice for
consumers—signaling a strong and growing trust in the
digital financial system. consumers—signaling a strong
ICMA: How do local and global partnerships support and growing trust in the digital
SBP’s fintech and innovation strategy?
financial system
Governor SBP: As a progressive central bank, SBP believes
in the value of global collaboration and partnerships that
allow learning and adoption of new technologies. SBP is
fully engaged with international multilateral organizations, also utilities, corporates, fintechs, and other organi-
as well as other central banks and key players. Because of our zations to participate in Raast.
collaborative efforts, the capacity of our staff has
Looking ahead, SBP has established Raast Payments
substantially increased in recent years. SBP is also looking to
Pakistan (Pvt) Ltd., a dedicated subsidiary with its own
establish cross-border linkages of payment systems to
independent Board composed of market leaders and
enable low-cost and efficient transfer of remittances to
strategic thinkers. This step underscores SBP’s long-term
Pakistan. For this, we are engaged with entities like the Arab
commitment to strengthening the resilience and
Monetary Fund to link our payment systems. Finally, the
sustainability of the digital payments ecosystem. The
introduction of regulations for EMIs, PSOs, PSPs, and digital
subsidiary will drive continuous innovation, enhance
banks also helps us attract talent from abroad, which
operational efficiency, and adapt to evolving user and
contributes to domestic capacity building.
market needs. International expansion is also underway.
Integration with cross-border payment systems—such
ICMA: How has Raast impacted the growth of digital
as Buna—is in progress, which will enable seamless and
payments, and what future developments are planned?
cost-effective remittance inflows from the Arab region.
Governor SBP: SBP introduced Raast as a next-
SBP is also planning to upgrade Raast’s core
generation Financial Market Infrastructure to enable
infrastructure to ensure it remains resilient, scalable, and
instant, free, and easy digital payments. Since its launch,
future-ready, supporting Pakistan’s journey toward a
Raast has seen rapid adoption—with over 45 million
cashless, digitally inclusive economy.
unique users registering Raast IDs, representing
approximately 32% of Pakistan’s adult population, and ICMA: What key achievements highlight SBP’s
more than 1 million merchants adopting Raast IDs. This progress in expanding digital retail transactions?
remarkable uptake has significantly expanded the reach
Governor SBP: Retail payments in Pakistan are showing
of digital payments for both individuals and businesses.
a strong upward trajectory. In FY24, transaction volumes
Raast currently supports three key use cases: bulk increased to 6.6 billion from 5.2 billion in FY23, whereas
payments, person-to-person (P2P) transfers, and the total value also increased to PKR 548.8 trillion from
merchant payments. Its robust capability to carry PKR 405.3 trillion—reflecting an annual growth of
additional information has enhanced reconciliation approximately 26% in volume and 35% in value. Notably,
processes, reporting, and financial insights of its the share of retail payments conducted through digital
participants. By enhancing transaction speed, security, channels increased significantly, reaching 85% by
and accessibility, Raast is reshaping Pakistan’s payment volume in FY24, up from 78% in FY23. This momentum
ecosystem and advancing digital financial services with has carried into FY25 as well. As per provisional data for
greater transparency, better reconciliation, and FY25, the volume of total retail payments has reached 8.9
opportunities for the development of new financial billion, amounting to almost PKR 622 trillion.
products. Recently, SBP has introduced broad-based Approximately 88% of the transaction volume was
access criteria that allow not only regulated entities but conducted digitally in FY25.

6 ICMA’s Chartered Management Accountant, Jul-Aug 2025