The State Bank of Pakistan (SBP) is set to launch its upgraded payment and settlement system, PRISM+, tomorrow, marking a major milestone in the modernization of Pakistan’s financial infrastructure. The initiative is part of SBP’s broader push under its Vision 2028 strategy to develop a secure, inclusive, and technologically advanced financial ecosystem.
PRISM+ represents a leap forward in how money and government securities are processed across the country’s financial system. Built on the ISO 20022 global messaging standard, the system aligns Pakistan with advanced international financial infrastructures. At its core, PRISM+ combines two vital components: a faster Real-Time Gross Settlement (RTGS) system for high-value interbank payments, and a modern Central Securities Depository (CSD) designed to manage government securities such as Treasury Bills, Pakistan Investment Bonds, and other instruments with efficiency and transparency.
The RTGS functionality within PRISM+ introduces several powerful tools that will reshape daily banking operations. It enables large payments to be settled instantly in real time, offers the flexibility to schedule transactions for future dates, and introduces priority-based processing that ensures critical payments are completed ahead of others. Banks will also benefit from advanced live dashboards, providing real-time visibility into balances, pending payments, settlement statuses, and automated invoicing for fees and charges.
The introduction of the CSD under PRISM+ is equally transformative. It allows banks to buy, sell, and manage government bonds with far greater efficiency than before. For the first time, banks will be able to participate in primary market auctions through real-time submission of bids and instant results. In secondary markets, trades can be matched and settled quickly, reducing delays in financial flows. The system also strengthens collateral management, allowing banks to track pledged securities, monitor valuations, and optimize liquidity. Furthermore, PRISM+ directly supports SBP’s open market operations, enabling the central bank to inject or absorb liquidity in real time to stabilize the economy.
Transparency and security are central to PRISM+. Every transaction leaves a comprehensive audit trail, while role-based access ensures only authorized users can execute specific actions. Banks will receive real-time alerts if issues arise during settlements, reducing risks and ensuring swift corrective action.
Liquidity management is another critical area of improvement. The system incorporates liquidity-saving mechanisms, giving preference to high-priority payments while batching less urgent ones to avoid congestion. Banks can earmark reserves specifically for critical systems such as Raast, 1Link, NIFT, or NCCPL, ensuring uninterrupted processing of key retail and institutional transactions. The Intraday Liquidity Facility (ILF) further strengthens resilience by allowing banks to temporarily access liquidity using eligible government securities as collateral, ensuring smooth settlements even during cash shortfalls.
Other enhancements include longer operating hours to increase access and flexibility, real-time handling of cancellations and returns, and improved cash management facilities at SBP’s Karachi office. Together, these upgrades make the system more robust, user-friendly, and adaptable to the evolving needs of Pakistan’s financial sector.
PRISM+ is expected to significantly reduce settlement risks, improve liquidity efficiency, and bring Pakistan’s financial markets closer to global standards. For banks and financial institutions, the system provides a more reliable platform to conduct payments and securities transactions, while for the broader economy, it signals a stronger and more transparent foundation for digital finance.
By rolling out PRISM+, the SBP is not only modernizing its infrastructure but also laying the groundwork for deeper financial inclusion and digital transformation. If implemented effectively, this system could redefine how money and securities move within Pakistan, while boosting investor confidence and strengthening the financial ecosystem in line with global best practices.
