KARACHI — The State Bank of Pakistan (SBP) has officially expanded Raast cross-border payments across major Gulf Cooperation Council (GCC) corridors, allowing overseas Pakistanis in Saudi Arabia, the United Arab Emirates, Qatar and Oman to transfer funds instantaneously to Pakistani bank accounts and digital wallets.

Developed in partnership with the Arab Monetary Fund's Buna cross-border payment system, the linkage connects Pakistan's domestic instant payment rail directly with participating Gulf financial institutions. According to the State Bank of Pakistan, the expansion of Raast cross-border payments eliminates intermediary correspondent banking delays that previously added 24 to 48 hours and significant transaction fees to small-value remittances.

Workers' remittances from the Middle East account for more than 55 percent of Pakistan's annual $32 billion remittance inflows. As documented in our Business and Pakistan coverage, channelling these inflows through instant formal rails is a cornerstone of the central bank's financial inclusion strategy.

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How Instant Settlement Changes Remittances and Fintech

Under the upgraded infrastructure, a sender in Riyadh or Dubai can initiate a transfer using a recipient's Pakistani mobile phone number (Raast ID) or IBAN. Before confirming the transaction, the sender sees the exact locked-in Pakistani Rupee exchange rate and zero backend deduction, with funds credited to Easypaisa, JazzCash, SadaPay, NayaPay or any of Pakistan's 40+ commercial banks within seconds.

"Integrating Raast cross-border payments with regional instant settlement hubs removes the friction that once pushed blue-collar workers toward informal channels. Instant liquidity at the household level directly boosts digital merchant payments across Pakistan."

Hira Mirza, Senior Financial Sector Economist in Karachi

Domestic adoption of Raast has surged over the past year. Quarterly transactions on the national payment rail exceeded Rs14 trillion, fuelled by person-to-person (P2P) transfers and the nationwide rollout of interoperable Raast QR codes across retail shops, pharmacies and fuel stations.

Next Phase: Freelancer and SME B2B Corridors

Beyond household remittances, central bank engineers are testing commercial business-to-business (B2B) modules for Raast cross-border payments. Once activated, small software houses and digital service exporters will be able to settle invoices directly from Gulf clients without losing 3 to 5 percent on wire transfer charges.

Key Benefits of the Raast GCC Linkage

  • Real-Time Settlement: End-to-end clearing and crediting completed 24/7/365 in under 30 seconds.
  • Universal Wallet Reach: Direct routing to over 48 million linked bank accounts and Electronic Money Institution (EMI) wallets.
  • Transparent Exchange Rates: Upfront interbank-aligned conversion visibility prior to sender authorization.
  • Automated AML Compliance: Built-in ISO 20022 messaging standards ensure real-time regulatory screening and security.

SBP officials confirmed that technical discussions are also underway to connect Raast cross-border payments with European and Southeast Asian instant payment switches by 2027, further cementing digital payments as the backbone of Pakistan's formal economy.

Reporting by the WritePures Fintech & Banking Desk in Karachi.