The State Bank of Pakistan (SBP) is in the process of establishing a dedicated, specialized entity to oversee and accelerate the development of the Raast payment system, as part of its broader effort to transform the digital payments landscape in Pakistan. This new organization will operate as a wholly owned subsidiary of the SBP, tasked with promoting innovation, enhancing operational independence, and accelerating the adoption of Raast as a key enabler of real-time digital payments across the country.
Raast, Pakistan’s national instant payment system, was initially developed with support from Karandaaz Pakistan. It enables low-cost, interoperable digital transactions across a wide spectrum of financial service providers, including commercial banks, microfinance banks, fintechs, Payment System Operators (PSOs), Electronic Money Institutions (EMIs), and various government entities. The platform is designed to facilitate real-time, low-value payments, with a strong emphasis on accessibility, affordability, and inclusion. To date, Raast has successfully processed over 295 million transactions valued at Rs. 6.4 trillion in a single quarter, with more than 41 million users registered.
Inspired by international digital payment successes such as India’s UPI, Brazil’s PIX, Singapore’s FAST, Saudi Payments, and JoPACC of Jordan, the SBP intends for this new entity to bring Pakistan’s payment infrastructure to a globally competitive level. The entity will be positioned to respond more swiftly to technological shifts and market dynamics by maintaining a structure that allows for agility, operational autonomy, and access to specialized talent. At the same time, it will remain closely aligned with SBP’s overarching policy goals to foster a stable, inclusive, and innovative financial system.
One of the significant goals of the SBP’s initiative is to integrate Raast with the Buna payment system managed by the Arab Monetary Fund. This will open new avenues for seamless cross-border transactions between Pakistan and several countries in the region, marking a significant milestone in Pakistan’s journey toward international payment interoperability and financial connectivity.
In collaboration with Karandaaz Pakistan, the SBP is ensuring that the new entity is grounded in sound policy and governance frameworks. Karandaaz will provide support in operationalizing the entity through a comprehensive suite of institutional policies covering human resources, financial governance, technical operations, and administrative procedures. This structure aims to provide the entity with the resilience and efficiency required to scale effectively while maintaining compliance with both local regulatory frameworks and international best practices.
To facilitate this, Karandaaz plans to engage a consulting firm responsible for drafting these operational policies and frameworks. The firm will be required to benchmark against global standards while tailoring recommendations to the local market. It must develop a skills matrix that clearly maps the competencies needed to achieve the entity’s strategic objectives. Importantly, personnel from or affiliated with India or Israel will not be permitted to participate in the project, either on the implementation or oversight teams, in line with stated guidelines.
The establishment of this subsidiary marks a pivotal step toward institutionalizing digital payments in Pakistan through the Raast ecosystem. It reflects SBP’s commitment to accelerating financial inclusion, increasing digital transaction adoption, and ensuring that Pakistan keeps pace with global innovations in digital finance. The success of this initiative could place Pakistan on the path to becoming a regional leader in real-time payments infrastructure.
