Pakistan Integrates Digital Payments with Arab World’s Buna Platform

ISLAMABAD: Pakistan is set to connect its digital payment system with the Arab Monetary Fund’s (AMF) Buna platform, a move aimed at boosting remittance inflows from overseas Pakistanis. The arrangement, however, will only allow inflows and not outward transfers.

The announcement came during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar at an IT park in Islamabad.

Digital Payments Growing Rapidly in Pakistan

State Bank of Pakistan (SBP) Governor Jameel Ahmed revealed that digital transactions now cross Rs1 trillion every nine days, compared to the annual Rs1 trillion mark at the launch of the Raast system.

He explained that integrating with Buna will make remittances faster, cheaper, and more secure, with the ultimate goal of shifting to a cashless economy nationwide by June 2026.

By 2028, 75% of Pakistan’s youth will have access to digital financial services.
Five licenses have already been issued for digital payment providers.
No 0.5% merchant fee will apply to digital payments.

What is the Buna Platform?

Launched in 2020, Buna is a cross-border, multi-currency payment system owned by the AMF. It supports currencies such as the Saudi Riyal and UAE Dirham, with plans to expand to currencies like the Chinese Yuan for enhanced regional trade.

Cashless Economy: Next Steps

Salaries, pensions, taxes, and utility bills will gradually shift to the digital system.
Consumers will be able to use USSD channels for transactions without internet access.
Fraud losses will be compensated by service providers if reported within two hours.

Deputy Governor Saleem Ullah highlighted that Pakistan already has:

95 million mobile banking users
226 million bank accounts (96m unique)
20,000 ATMs nationwide
850,000 QR merchants integrated

Challenges Raised in NA Meeting

Naveed Qamar flagged concerns that nearly 50% of Pakistan’s economy is undocumented, stressing the need for offline transaction support.
Hina Rabbani Khar questioned how a digital economy would function with slow internet speeds and frequent outages.

CSR and EV Policy Under Review

The committee also discussed the Corporate Social Responsibility (CSR) Bill, noting that companies spent Rs22 billion on CSR activities in 2024. Members suggested making CSR spending mandatory with penalties for non-compliance.

Dissatisfaction was also expressed over the National Electric Vehicle Policy 2025-30, with officials from the Ministry of Industries summoned for further explanation.

Debt Repayments & IMF Review

Pakistan is preparing to repay a $500 million Eurobond maturing on September 30, 2025, coinciding with the IMF review mission under the $7 billion Extended Fund Facility (EFF).

Of $26 billion external debt due in FY2025-26, $3.5 billion has already been repaid.
$9 billion in deposits from friendly countries is expected to be rolled over.
Pakistan plans to issue Panda Bonds in China by December 2025, raising up to $250 million initially.

Future debt maturities include:

$1 billion Eurobond (April 2026) issued at 6%.
$1 billion bond (2029) and $1 billion bond (2031) issued at rates of 7.3% and 6%.