Qudsia Bano

In a landmark ceremony, the Arab Monetary Fund (AMF) and State Bank of Pakistan (SBP) signed an MoU, marking a pivotal moment in facilitating cross-border remittances between the Arab region and Pakistan, reports WealthPK. Dr. Abdulrahman Bin Abdullah Al Hamidy, Director General/Chairman of the Board of AMF, and Jameel Ahmad, Governor of the SBP, signed the MoU. The MoU establishes a robust framework of cooperation between Buna, the cross-border payment system operated by the Arab Regional Payments Clearing and Settlement Organization (ARPCSO), owned by the AMF, and Raast, Pakistan's Instant Payment System. The integration of Raast with Buna aims to streamline cross-border remittances through formal channels, offering individuals and businesses instant, safe, and cost-effective transactions. This initiative is poised to strengthen economic, financial, and investment ties between the Arab countries and Pakistan. Dr. Abdulrahman highlighted the strategic collaboration, stating, "This underscores Buna's commitment to connecting different regions, reinforcing economic ties, and innovating cross-border payment solutions. Our goal is to offer safe and efficient cross-border instant payment access for individuals and corporates, while also increasing cross-border remittances by reducing costs and processing times." The collaboration aligns with the vision of Buna's founders in the Council of Central Bank governors, emphasizing adherence to the highest compliance standards. SBP Governor Jameel Ahmad termed the MoU a significant strategic achievement, opening the door to closer connections between Pakistan and the Arab region.

The collaboration reflects the SBP's vision to leverage cross-border integrations in building an innovative Digital Financial Services ecosystem, he said. "The integration of Raast and Buna will increase remittances to Pakistan through formal channels, providing enhanced speed, safety, and savings in cross-border transactions. With a significant portion of Pakistan's remittances originating from the Arab region, this collaboration is crucial for facilitating seamless financial transactions," he said. Talking to WealthPK, Shahid Javed, Senior Economist at the SBP, said the central bank was committed to expeditiously completing the necessary work to operationalize the connectivity between Raast and Buna, ensuring swift and efficient cross-border remittances for over five million Pakistanis residing in the Arab region. “This strategic partnership is expected to have a transformative impact on the financial landscape, fostering economic growth and cooperation between the Arab region and Pakistan,” he said. Shahid emphasized that the collaboration between the AMF and the SBP held the potential to reshape the financial landscape, thus fostering economic growth, and strengthening ties between the Arab region and Pakistan. “As the SBP works towards operationalizing the connectivity between Raast and Buna, it is likely to set a precedent for future collaborations in the dynamic and evolving world of cross-border financial transactions. This strategic partnership is indeed a step in the right direction for achieving a more connected and efficient global financial ecosystem,” said Shahid.

Credit: INP-WealthPk