The State Bank of Pakistan (SBP) is expanding its groundbreaking RAAST payment system by onboarding the provincial chapters of Accountant Generals in Punjab, Balochistan, and Gilgit-Baltistan, according to the recently released “Annual Payment Review” by the central bank. The integration of these Accountant General offices into RAAST marks a significant step in the ongoing digital transformation of public payments across Pakistan.
The report highlights that the onboarding process for the Accountant General offices in Gilgit-Baltistan, Punjab, and Balochistan has been successfully completed, with payment processing expected to commence shortly. This follows the earlier successful deployment of the RAAST system at the federal level with the Accountant General Pakistan Revenues (AGPR).
Progress on RAAST at Federal Level
At the federal level, RAAST was deployed at AGPR to streamline bulk payments, including payrolls, vendor payments, General Provident Fund (GPF) disbursements, and advances-related payments. During FY24, AGPR processed 850,000 transactions through RAAST, amounting to Rs. 100 billion, making it the largest bulk payment processor, responsible for more than 90% of AGPR’s total payments for the fiscal year.
In addition to AGPR, the Central Directorate of National Savings (CDNS) was also onboarded onto RAAST, allowing it to process coupon payments and encashment services. CDNS processed 72,000 transactions valued at Rs. 26 billion, accounting for approximately 10% of the total payments during the same period.
Expanding RAAST to BISP and FBR
As part of its broader strategy to digitize the economy, the SBP is working to onboard several key public sector entities onto the RAAST platform. Discussions are underway to include the Benazir Income Support Program (BISP), enabling digital disbursements under the program. The Federal Board of Revenue (FBR) is also expected to join RAAST for duty drawback payments, while the Controller Naval Accounts is slated for onboarding to handle salary and pension disbursements.
RAAST’s Impressive Growth
RAAST, Pakistan’s instant payment system built on the ISO-20022 standard, has seen tremendous growth since its launch. During FY24, a total of 496.1 million transactions were processed through the platform, amounting to Rs. 11,558.3 billion. This represents a substantial increase from FY23, when 147.2 million transactions worth Rs. 3,074.4 billion were processed.
RAAST has played a pivotal role in increasing the adoption of digital payments in Pakistan, particularly through its person-to-person (P2P) use case, which allows individuals to transfer funds free of charge using mobile banking apps or internet banking portals. Transfers can be made using an International Bank Account Number (IBAN) or a RAAST ID.
RAAST P2M for Businesses
The SBP has also launched an interoperable RAAST Person-to-Merchant (P2M) service to further accelerate digital payment adoption among businesses. This service enables merchants and businesses to accept payments via Quick Response (QR) codes, RAAST Alias, IBAN, and Request to Pay (RTP). The P2M service is expected to significantly drive the digitization of merchant and business transactions across the country, making digital payments more accessible and efficient for all stakeholders.
With these latest advancements, SBP continues to lead the digital transformation of Pakistan’s financial landscape, facilitating secure, instant, and cost-effective payment solutions for both individuals and businesses alike.