The State Bank of Pakistan (SBP) is advancing its digital transformation agenda by extending its RAAST payment system to the provincial chapters of Accountant Generals, including those in Punjab, Balochistan, and Gilgit-Baltistan. This move marks a significant step towards enhancing the efficiency and speed of digital payments at the provincial level, following the successful deployment of RAAST at the federal level through the Accountant General Pakistan Revenues (AGPR). According to the SBP’s recently released Annual Payment Review, the onboarding of the provincial Accountant Generals has been completed, with payment processing set to commence soon.
RAAST, which is Pakistan’s first instant payment system developed under ISO-20022 standards, has been pivotal in transforming the country’s payment infrastructure. Its aim is to simplify and digitalize transactions across both public and private sectors, contributing to the broader goal of financial inclusion. The system allows users to perform instant and free person-to-person (P2P) transactions, as well as facilitate transactions between businesses and customers through its newly launched person-to-merchant (P2M) feature.
The recent expansion of RAAST to the provincial Accountant Generals is an extension of its initial deployment with AGPR at the federal level. AGPR has been utilizing RAAST to streamline bulk payments, including payroll, vendor payments, General Provident funds, and advances-related disbursements. During the fiscal year 2024 (FY24), AGPR processed approximately 850,000 transactions via RAAST, with a total value of Rs. 100.0 billion. This made it the largest bulk payment processor under the RAAST system, accounting for over 90% of AGPR’s total payment volume during FY24.
Additionally, the Central Directorate of National Savings (CDNS) has also been integrated into the RAAST ecosystem. CDNS uses the platform for processing coupon payments and encashment services, processing 72,000 transactions amounting to Rs. 26.0 billion during the same period. This represented about 10% of the total payments processed by RAAST in FY24, reflecting the growing trust in RAAST’s capabilities among public sector entities.
The SBP has also been working on expanding the reach of RAAST by onboarding key national programs and institutions. This includes ongoing discussions to integrate the Benazir Income Support Program (BISP) into the RAAST platform for efficient payment disbursements. Additionally, plans are underway to bring the Federal Board of Revenue (FBR) onboard for processing duty drawbacks, as well as integrating the Controller Naval Accounts for salary and pension disbursements.
In its Annual Payment Review, the SBP highlighted the exponential growth in the adoption of RAAST. The platform processed a total of 496.1 million transactions amounting to Rs. 11,558.3 billion in FY24. This is a significant increase compared to FY23, which recorded 147.2 million transactions with a value of Rs. 3,074.4 billion. The surge in transaction volume underscores the increasing acceptance of digital payment methods among the public and institutions.
A major highlight of the RAAST system is its P2M service, which is aimed at digitizing merchant and business transactions across Pakistan. The P2M feature allows businesses to accept payments through various methods, including Quick Response (QR) Codes, RAAST Alias, IBAN, and Request to Pay (RTP). By offering a seamless way for businesses to accept digital payments, RAAST is set to drive the digital transformation of Pakistan’s commercial landscape, making it easier for small businesses and large enterprises alike to adopt cashless transactions.
The SBP’s expansion of the RAAST payment system to provincial Accountant Generals signifies a continued commitment to enhancing financial inclusion and driving digitalization across the nation’s payment systems. This strategic move is expected to further streamline public sector transactions, increase transparency, and foster greater trust in digital payment systems among the populace. With more institutions being integrated into RAAST, Pakistan is positioning itself for a future where digital payments become the standard, paving the way for a more connected and financially inclusive economy.