Page 8 - CMA Journal (July-August 2025)
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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
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