From Zeeshan Mirza
KARACHI: Pakistanis recently made financial transactions totalling Rs1 trillion via Raast, an instant payment system, in just 16 days, compared to the first Rs1 trillion transacted over 336 days two years ago, marking a significant shift towards the adoption of digital payment solutions.
The State Bank of Pakistan (SBP) reported that Raast has processed 892 million transactions amounting to Rs20 trillion, with the latest trillion achieved in just 16 days.
“This reflects SBP’s commitment to making digital payments easier and accessible for all,” the bank stated. The data suggests that the average payment size through the online system stood at Rs22,421.52.
According to the SBP’s Governor’s Annual Report 2023-24, the major driver of this volumetric growth in Raast transactions was the Person-to-Person (P2P) module, which was launched in February 2022.
Pakistan’s digital payments and financial markets are experiencing continuous improvements, including the SBP’s introduction of the Person-to-Merchant (P2M) module in Raast.
This module allows businesses to accept payments via QR codes, Raast IDs, bank account numbers, and request-to-pay options, thereby expanding payment choices for customers and further boosting digital payments.
This initiative is expected to enhance convenience for businesses in carrying out their transactions.
Meanwhile, the expansion in the total number of accounts maintained a double-digit growth, up 18% to reach 215 million accounts by the end of FY24. “This fast growth is conducive to raising financial inclusion in the country,” the report highlighted.
The significant increase in accounts was supported by the expansion of SBP-regulated entities, including banks, microfinance banks (MFBs), and development financial institutions (DFIs), whose branch networks grew to 18,355 in FY24, up from 17,751 in FY23. These branches, along with increasing alternate delivery channels (ADCs), facilitated financial intermediation and served a large number of customers during FY24.
Despite high inflation and a challenging operating environment, the banking sector’s expanding branch network is encouraging and expected to further enhance outreach and financial inclusion in the economy.
