The State Bank of Pakistan (SBP) on Friday issued a detailed procedure enabling exchange companies to disburse inward home remittances through Raast without charging any fee, following its earlier approval aimed at strengthening digital payments and improving remittance efficiency.
Under the revised framework, exchange companies that have obtained prior approval and completed the required onboarding process may credit remittances directly into beneficiaries’ bank accounts or digital wallets through Raast. The central bank said the initiative supports the national objective of promoting a cashless economy while enhancing transparency and traceability in remittance flows.
According to the SBP’s directives, an approved exchange company may enter into an agreement with an authorised bank for Raast-based disbursement, subject to compliance with terms and conditions prescribed by the central bank. Under the free-send model, exchange companies are not allowed to charge any fee to beneficiaries. They will also be responsible for providing the necessary information to the partnering bank to enable the issuance of an Electronic Proceeds Realisation Certificate (e-PRC).
The SBP clarified that all such agreements must strictly conform to its existing regulatory framework, including anti-money laundering and know-your-customer requirements, and cannot be amended without prior approval from the central bank. Exchange companies have been advised to submit revised agreements to the relevant SBP department for record purposes before commencing Raast-based disbursement operations.
The facility allows beneficiaries to receive remittances in accounts and wallets maintained with banks, microfinance banks and electronic money institutions, thereby broadening access to formal financial channels and reducing reliance on cash-based transactions.
The move was welcomed by Malik Bostan, Chairman of the Exchange Companies Association of Pakistan, who said the new facility would significantly reduce transaction time and eliminate the need for beneficiaries to physically visit exchange company offices. He said the SBP has permitted exchange companies to partner with the Bank of Punjab, Habib Bank Limited, United Bank Limited and Bank AL Habib for Raast-based remittance disbursement.
Bostan added that the initiative aligns with broader efforts to channel remittances through documented and formal systems and is expected to support higher recorded inflows. He noted that Pakistan is projected to receive around $42 billion in workers’ remittances by the end of the current fiscal year, compared with $38 billion in the previous year, reflecting growing reliance on digital and regulated remittance channels.
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