Islamabad, August 22, 2024 — Pakistan has taken a significant leap towards integrating into the Arab-world payments ecosystem with the launch of the Buna-Raast Connectivity Project’s Implementation Phase. Prime Minister Mian Muhammad Shehbaz Sharif inaugurated the project, which will link Raast, Pakistan’s instant payment system, with Buna, the Arab Monetary Fund’s cross-border payment system. This groundbreaking initiative is poised to revolutionize cross-border remittances, making them faster, more affordable, and accessible to millions of Pakistanis worldwide.
The launch event, held in Islamabad, brought together a diverse array of stakeholders, including high-level government officials, international development leaders, banking representatives, and key figures from the financial and economic sectors. Notable attendees included Prime Minister Shehbaz Sharif; Mr. Muhammad Aurangzeb, Federal Minister for Finance & Revenue; H.E. Fahad M. Alturki, Director General and Chairman of the Board of The Arab Monetary Fund (AMF); Mr. Jameel Ahmed, Governor of the State Bank of Pakistan; Dr. Anita Zaidi, President of the Bill & Melinda Gates Foundation; and Mr. Waqas ul Hasan, CEO of Karandaaz Pakistan.
A Landmark Initiative for Cross-Border Payments
The Buna-Raast Connectivity Project is the result of collaborative efforts between the Ministry of Finance, the State Bank of Pakistan (SBP), and Karandaaz Pakistan, with substantial support from the Bill & Melinda Gates Foundation. The project aims to simplify and enhance the remittance process for millions of overseas Pakistanis, particularly those residing in Arab countries. By linking Raast with Buna, the initiative seeks to provide a swift, affordable, and efficient mechanism for cross-border remittances.
Prime Minister Shehbaz Sharif emphasized the project’s importance in his address, highlighting its potential to not only ease the digital remittance process but also boost Pakistan’s foreign exchange reserves and strengthen the country’s already cordial relations with the Arab world. He described the initiative as a major step forward in expanding Pakistan’s digital payment infrastructure and promoting financial transactions through modern, innovative techniques.
Economic Revival Plan on the Horizon
During the ceremony, Prime Minister Shehbaz Sharif also announced that he would soon unveil a five-year economic revival plan. Dubbed the “Home-Grown Economic Program,” the plan has been in development for several months, with broad parameters recently finalized following extensive consultations with stakeholders. The program aims to boost Pakistan’s economy by focusing on key sectors such as agriculture, information technology, and other untapped areas.
The prime minister underscored the challenges faced in reforming the Federal Board of Revenue (FBR) and the power sector, noting that he is personally overseeing the digitization of the FBR. He expressed optimism about the positive outcomes of ongoing power sector reforms.
A Vision for the Future of Payments
Looking ahead, the Buna-Raast Connectivity Project holds the potential to evolve into a broader payment system model, enabling transactions across regions with the possibility of handling over $20 billion in annual payments. Prime Minister Shehbaz Sharif extended his gratitude to the Arab Monetary Fund, the State Bank of Pakistan, the Ministry of Finance, the Bill & Melinda Gates Foundation, and Karandaaz for their support in launching this transformative project.
In recognition of their contributions, the prime minister presented mementos to H.E. Fahad M. Alturki, Chairman of the Arab Monetary Fund; Mr. Jameel Ahmed, Governor of the State Bank of Pakistan; Dr. Anita Zaidi, President of the Bill & Melinda Gates Foundation; and Mr. Waqas ul Hasan, CEO of Karandaaz Pakistan.
The Buna-Raast Connectivity Project marks a significant milestone in Pakistan’s journey towards a more integrated and digitally connected economy, offering new opportunities for financial inclusion and economic growth.
