The State Bank of Pakistan (SBP) has taken a major step toward strengthening Pakistan’s digital financial ecosystem by allowing exchange companies to utilize Raast, the country’s instant payment system, for the facilitation and disbursement of home remittances. The move is part of SBP’s broader digital transformation agenda outlined under its Strategic Plan 2023–2028, which prioritises innovation, interoperability, and the expansion of secure digital payment channels across the financial sector.
Raast, launched by SBP in 2021, is a state-of-the-art payment infrastructure designed to enable instant, low-cost, and secure digital transactions. Since its introduction, the system has played a pivotal role in expanding person-to-person and person-to-merchant payments by connecting banks, microfinance banks, and electronic money institutions on a single interoperable platform. By extending access to exchange companies, SBP has significantly broadened the scope of Raast within the remittance ecosystem.
Under this new enablement, beneficiaries receiving home remittances through exchange companies will be able to receive funds directly into their bank accounts or digital wallets maintained with banks, microfinance banks, or electronic money institutions. This development is expected to improve the overall remittance experience by reducing reliance on cash-based payouts and offering faster, more transparent, and secure settlement options.
Remittances are a critical component of Pakistan’s economy, contributing billions of dollars annually and providing financial support to millions of households. However, a substantial portion of remittance disbursements has historically been processed through cash channels, which can be inefficient, costly, and prone to delays. The integration of exchange companies with Raast is aimed at addressing these challenges by promoting account-based and wallet-based transfers that align with global digital payment standards.
SBP has consistently emphasised the need to strengthen digital payments infrastructure as a foundation for financial inclusion and economic resilience. By enabling exchange companies to connect with Raast, the central bank is reinforcing its commitment to creating a seamless and customer-centric remittance framework that supports both domestic and cross-border financial flows. The move also reflects SBP’s focus on redesigning regulatory frameworks to support innovation while maintaining system integrity and consumer protection.
This initiative is also a significant milestone in Pakistan’s journey toward a cashless economy. Digital disbursement of remittances encourages beneficiaries to maintain active accounts and wallets, which can serve as entry points to broader financial services such as savings, credit, and insurance. Over time, increased digital usage is expected to enhance financial documentation, improve transparency, and reduce the cost of cash handling across the economy.
From a regulatory standpoint, SBP has issued formal instructions through EPD Circular Letter No. 02 dated January 15, 2026, providing the necessary framework for exchange companies to operationalise Raast-based remittance services. The circular outlines the conditions under which exchange companies can participate in the system, ensuring compliance with existing regulatory and operational safeguards.
The digital enablement of exchange companies also supports SBP’s efforts to promote secure, interoperable, and efficient cross-border payment solutions. By integrating more market participants into Raast, the central bank is fostering a more connected financial ecosystem where innovation can scale without compromising stability.
As Pakistan continues to expand its digital finance landscape, initiatives such as this are expected to play a central role in modernising payment systems and enhancing user trust. The inclusion of exchange companies in the Raast network underscores SBP’s strategy of leveraging technology to improve service delivery, support financial inclusion, and advance national objectives related to digitalisation and economic efficiency.
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