Pakistan has officially announced its integration with the Arab world’s Buna payment platform, a move that marks a major milestone in the country’s journey toward a digital and cashless economy. The integration, disclosed during a meeting of the National Assembly Standing Committee on Finance in Islamabad on September 19, 2025, will allow cross-border transactions but will initially be limited to inflows from overseas Pakistanis. Outward transfers will not be permitted under the current arrangement.
Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, briefed the committee on the significance of the step. He revealed that when Pakistan’s instant payment system Raast was first launched, digital transactions hovered around Rs1 trillion annually. Today, the same volume is achieved every nine days, underlining the rapid adoption of digital financial services across the country.
The Buna platform, launched in 2020 by the Arab Monetary Fund (AMF), is a regional cross-border and multi-currency payment system that allows financial institutions to send and receive payments in both Arab and international currencies. It currently supports the Saudi Riyal and Emirati Dirham, with plans to integrate more global currencies such as the Chinese Yuan to strengthen regional trade and economic cooperation.
According to SBP, integrating Pakistan into Buna will make remittances from overseas Pakistanis faster, cheaper, and more secure. The move is expected to have a major impact on the country’s remittance inflows, which are a lifeline for the national economy. Jameel Ahmed emphasized that the SBP aims to provide 75% of Pakistan’s youth with digital financial services by 2028, with the ambitious target of transitioning to a nationwide cashless economy by June 2026.
The central bank has already issued five licenses for digital payments and removed the 0.5% merchant fee on transactions to promote adoption. To further encourage consumers, the government has committed to absorbing the cost of digital payment infrastructure. Minister of State for Finance Bilal Azhar Kayani told the committee that Pakistan will soon be among the first countries in the region to roll out such an integrated digital payment ecosystem.
Finance Secretary Imdadullah Bosal added that government services including salaries, pensions, taxes, and utility bills will gradually transition to the cashless system. Deputy Governor SBP Saleem Ullah highlighted that Pakistan already has 95 million active mobile banking users, 226 million bank accounts (96 million unique), 19,000 branches, 20,000 ATMs, and over 850,000 QR-enabled merchants across the country. USSD channels will also be deployed to enable transactions without internet access.
However, some concerns were raised by lawmakers. Syed Naveed Qamar, chair of the NA finance committee, pointed out that nearly half of Pakistan’s economy remains undocumented, making it difficult to implement a digital ecosystem fully. Hina Rabbani Khar questioned how the SBP would promote a cashless economy amid frequent internet disruptions and slower broadband speeds.
The SBP clarified that in cases of fraud or technical errors, service providers would compensate customers if complaints are filed within two hours. However, user mistakes such as sending money to the wrong account will not be reimbursed.
Beyond digital payments, the committee also reviewed the Corporate Social Responsibility (CSR) Bill. SECP officials reported that in 2024, 315 out of 447 registered companies carried out CSR activities worth Rs22 billion, while 199 companies failed to share details and 100 did not spend at all. A Rs1 billion penalty has been proposed for non-disclosure, though members recommended making CSR spending mandatory.
Meanwhile, the SBP Governor confirmed that Pakistan is preparing to repay a $500 million Eurobond maturing on September 30, 2025, during the IMF’s upcoming review mission. With $26 billion in external debt obligations due in FY26, Pakistan is exploring international bond markets, including Panda bonds in China, to manage repayments.
The integration with the Buna platform is being viewed as a landmark step to strengthen remittance flows and expand the digital payments ecosystem. By building secure and faster cross-border channels, Pakistan aims to not only improve remittance inflows but also take a decisive step toward achieving its 2026 cashless economy target.
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