State Bank of Pakistan (SBP) Governor Jameel Ahmed announced a significant achievement on Friday, as the country now facilitates payments in Pakistani rupees with Arab countries. This milestone was accomplished through the integration of Raast, Pakistan’s instant payment system, with the Arab Monetary Fund’s Buna platform, aimed at enhancing regional financial connectivity.
Expanding Financial Connectivity with China
In addition to the Arab region, Pakistan’s central bank is working on enabling e-wallet holders in the country to make direct payments in China via online banking channels. This initiative is part of SBP’s broader efforts to boost regional financial integration and promote digitalization across all sectors.
Third National Financial Inclusion Strategy (NFIS) Set to Launch
The SBP is also preparing to introduce the third National Financial Inclusion Strategy (NFIS) 2028 during the current fiscal year (2024-25). This strategy aims to extend banking services to 75% of the adult population, up from the current 60%, with a focus on increasing financial inclusion for women, youth, and disabled individuals. The SBP’s target is that by 2028, 25% of users will be women.
Cross-Border Payment Integration with Raast and Buna
In his annual report to parliament for 2023-24, Governor Jameel Ahmed highlighted the cross-border integration of Raast with the Buna platform, marking a key milestone by including the Pakistani rupee as a settlement currency. This move is expected to enhance digital financial connectivity between Pakistan and the Arab region.
New Partnership with China for E-Payments
The SBP also approved a partnership between Pakistani and Chinese financial firms, enabling e-wallet users in Pakistan to make payments in China, supporting e-commerce and small-ticket purchases.
NFIS 2028: Advancing Digital Financial Inclusion
Building on the success of the NFIS 2018-2023, the new NFIS 2028 aims to address digital financial inclusion challenges by improving access, usage, and the quality of financial services. This strategy will focus on expanding secure digital financial services, particularly in underserved areas, and enhancing financial inclusion for priority sectors such as SMEs, housing, agriculture, and microfinance.
The overarching goal of NFIS 2028 is to raise financial inclusion from 60% to 75% by 2028, with special emphasis on reducing the gender gap and fostering inclusive economic growth.
Developing a Financial Inclusion Index
The SBP is developing a financial inclusion index to better measure the level of financial inclusion in Pakistan. This index, based on access, usage, and quality parameters, will provide comprehensive insights and guide evidence-based policymaking. The results will be published annually, giving a more accurate reflection of the country’s financial inclusion landscape.
Electronic Warehouse Receipt Financing (EWRF)
In February 2022, the SBP launched Electronic Warehouse Receipt Financing (EWRF) for maize and rice crops, allowing farmers, traders, and processors to obtain financing against physical commodities stored in accredited warehouses. In FY24, banks disbursed Rs1,891 million to 637 borrowers, exceeding the target of Rs1,741 million.
Crop and Livestock Insurance Schemes
The SBP is also promoting agricultural resilience through crop and livestock insurance schemes. Under the Crop Loan Insurance Scheme (CLIS), banks have submitted insurance claims totaling Rs11.3 billion for 7 million beneficiaries between 2008 and 2023. Additionally, the Livestock Insurance Scheme for Borrowers (LISB) has provided insurance coverage for nearly a million small-scale livestock farmers, with banks submitting claims amounting to Rs3.22 billion since its inception in 2014.
These initiatives reflect the SBP’s commitment to improving financial inclusion and supporting the agriculture sector in Pakistan.
