SBP is making a two-pronged attack to boost the economy. They’re expanding their instant payment system, Raast, to 60 countries within a year, with a focus on the Middle East. This aims to reduce transaction costs for Pakistani workers abroad sending money home, a crucial source of income for the country. They are also exploring launching a digital currency but are still in the evaluation stage.
On another front, they’re tackling the challenge of financing for small and medium-sized businesses (SMEs). They acknowledge the current level of financing is insufficient and are proposing changes to regulations, conducting a national SME census, and offering a risk coverage program to incentivize banks to lend. A task force is also working on solutions for better funding access for SMEs.
SBP stressed the importance of technology in streamlining financial services and urged banks to embrace it to reduce costs and improve the experience for small businesses.
