Abu Dhabi, UAE — The Arab Monetary Fund (AMF) and the State Bank of Pakistan (SBP) have signed an MoU to enhance cross-border payments.
The partnership aims to create a framework for cooperation between Buna, the cross-border payment system operated by the Arab Regional Payments Clearing and Settlement Organization (ARPCSO), owned by AMF, and Raast, Pakistan’s instant payment system.
This will eventually streamline cross-border remittances between the Arab region and Pakistan through official channels.
This initiative promises not only instant, secure, and cost-effective cross-border payments but also seeks to bolster economic, financial, and investment relationships between Arab countries and Pakistan, AMF said in a statement.
With over 5 million Pakistanis residing in the Arab region and around 55 percent of Pakistan’s total remittances received from Arab countries, SBP is committed to completing the necessary work and operationalizing the connectivity between Raast and Buna in the shortest possible time, said Jameel Ahmed, Governor of the State Bank of Pakistan.
Dr. Abdulrahman Abdullah Al Hamidy, Director-General and Chairman of the Board of AMF and Chairman of the Board of ARPCSO, said, “This resonates with the shared vision of innovating cross-border payment solutions to offer safe and efficient cross-border instant payment access for individuals and corporates.”
Jameel Ahmed, Governor of the State Bank of Pakistan, emphasized the strategic importance of the MoU, saying, “This MoU is a significant strategic achievement that opens the door to a closer connection between Pakistan and the Arab region. This collaboration between SBP and AMF is in line with our vision to leverage cross-border integrations to complement the objective of building an innovative Digital Financial Services ecosystem.”