{"id":1257,"date":"2024-10-01T10:00:32","date_gmt":"2024-10-01T10:00:32","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=1257"},"modified":"2025-01-13T14:16:41","modified_gmt":"2025-01-13T14:16:41","slug":"sbp-confident-in-pakistan-digital-payment-infrastructure-amid-government-push","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=1257","title":{"rendered":"SBP Confident in Pakistan Digital Payment Infrastructure Amid Government Push for Cashless Economy"},"content":{"rendered":"\r\n

KARACHI<\/em>: The State Bank of Pakistan (SBP)<\/a> has expressed full confidence in the country’s digital payment infrastructure, reaffirming its capability to support the government’s increasing drive towards a cashless economy.<\/p>\r\n\r\n\r\n\r\n

Speaking at the \u201cFuture Banking Summit 2024\u201d organized by Total Communications<\/a> on Monday, Syed Sohail Javaad, Executive Director of the SBP’s Digital Financial Services Group, emphasized the government\u2019s commitment to digitizing financial transactions. He assured that the banking system, in collaboration with service providers, is well-prepared to handle the surge in demand resulting from the government\u2019s push for digitalization.<\/p>\r\n\r\n\r\n\r\n

“We are confident that the country\u2019s financial system, with the SBP\u2019s support, will efficiently manage the government’s rising demand for digitalization,” Javaad said. He acknowledged that while some service providers may face challenges, the majority of banks and vendors are equipped to handle the increasing pressure.<\/p>\r\n\r\n\r\n\r\n

Javaad highlighted the government’s ongoing efforts to transition towards digital payments, noting that salaries for over 90 percent of federal government employees in Islamabad are now processed through the SBP\u2019s instant online payment system, Raast. Recently, government salaries processed in Karachi were also handled through Raast for the first time. The digitalization push is set to expand further, with the salaries of employees in Punjab and Khyber Pakhtunkhwa to be processed via Raast starting next month.<\/p>\r\n\r\n\r\n\r\n

He also revealed that the volume of transactions via Raast has surged dramatically, with daily transactions rising to 2.5-2.6 million from 1.8 million in June 2024. The rapid adoption of the platform is evident in the time taken to complete financial transactions: while the first Rs 1 trillion worth of transactions took 336 days, the most recent Rs 1 trillion worth of transactions was completed in just 22 days.<\/p>\r\n\r\n\r\n\r\n

In addition to Raast, Javaad noted significant growth in the use of digital payment solutions, including mobile wallets, branchless banking, Electronic Money Institutions (EMIs), fintech, and e-commerce, over the past five years, further propelling Pakistan towards a digital economy.<\/p>\r\n\r\n\r\n\r\n

At the summit, Carmine Grabandt, Business Development Director at Giesecke & Devrient GmbH, offered a global perspective, emphasizing that while digital payments are on the rise, cash still holds a significant role. \u201cCash remains king globally, especially in times of crises when infrastructure breaks down,\u201d Grabandt said.<\/p>\r\n\r\n\r\n\r\n

Yahya Khan, Chief Digital Officer and Group Head at Bank Alfalah<\/a>, highlighted the challenges associated with the large volume of cash still in circulation. He pointed out that roughly one-third of the Rs 10 trillion in cash remains unaccounted for, fueling inflation and contributing to the informal economy. Khan suggested that banks could deploy ATM machines to collect cash from businesses after traditional banking hours, helping reduce the cash in circulation.<\/p>\r\n\r\n\r\n\r\n

Amna Hanif, CEO of NDS Technologies<\/a>, underscored the transformative power of technology in shaping the future of banking in Pakistan. \u201cThe use of technology is redefining the banking landscape, making it more economical, faster, and efficient. This evolution will transition traditional banks into future banks,\u201d Hanif said.<\/p>\r\n\r\n\r\n\r\n

The one-day summit also featured two panel discussions, focusing on the challenges of transitioning to a cashless Pakistan and the roadmap for fintechs in the growing digital payments ecosystem.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

KARACHI: The State Bank of Pakistan (SBP) has expressed full confidence in the country’s digital payment infrastructure, reaffirming its capability to support the government’s increasing drive towards a cashless economy. Speaking at the “Future Banking Summit 2024” organized by Total Communications on Monday, Syed Sohail Javaad, Executive Director of the SBP’s Digital Financial Services Group, […]<\/p>\n","protected":false},"author":1,"featured_media":1258,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[7],"tags":[769,226,402,14,23,59],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t