Pakistan has decided to integrate its digital payment system with the Arab world’s Buna platform, operated by the Arab Monetary Fund (AMF), a move expected to improve remittance inflows. The arrangement will facilitate cross-border transactions, but only for inflows from overseas Pakistanis, with no provision for outward transfers.
The development was disclosed during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar. Governor State Bank of Pakistan (SBP) Jameel Ahmed informed the committee that digital payment transactions, which initially totaled around Rs1 trillion annually at the launch of Raast, now surpass Rs1 trillion every nine days.
He explained that the new arrangement would ensure faster, more secure remittances and highlighted the government’s target of providing digital financial services to 75% of youth by 2028. By June 2026, a cashless economy is planned to be rolled out at federal and provincial levels.
Buna, launched in 2020, is a multi-currency platform that allows cross-border transactions in Arab and international currencies, currently supporting the Saudi Riyal and Emirati Dirham, with plans to expand to currencies like the Chinese Yuan.
Ahmed added that five digital payment licenses had been issued and clarified that such transactions would not carry merchant fees. Minister of State for Finance Bilal Azhar Kayani stressed that the government would bear transaction costs to promote adoption, calling Pakistan one of the first countries in the region to establish such a digital ecosystem.
Finance Secretary Imdadullah Bosal informed the committee that salaries, pensions, taxes, and utility bills would gradually transition to digital payments. However, the SBP noted that banks would not cover user error losses, though fraud-related complaints lodged within two hours would be compensated by service providers.
Meanwhile, Pakistan is preparing to repay a $500 million Eurobond by September 30, 2025, coinciding with the IMF’s second review mission under the $7 billion Extended Fund Facility.
Of $26 billion in external debt repayments due in 2025-26, $3.5 billion has already been cleared, with $9 billion expected to be rolled over by friendly countries. Pakistan also plans to re-enter international capital markets by launching Panda bonds in China by December 2025, as it seeks to diversify financing options amid its debt obligations.
