Key facts
- Pakistan is connecting its Raast payment system to the Arab Monetary Fund's Buna network.
- The integration is expected to make remittances from the Persian Gulf about 30% cheaper.
- The Pakistani Rupee (PKR) has been added as a settlement currency on the Buna platform.
- The connection aims to reduce reliance on informal hawala and hundi transfer mechanisms.
- Overseas Pakistanis remitted a record $41.6 billion in FY26, with over 90% going to household consumption.
- Saudi Arabia and the UAE are the largest sources of remittances to Pakistan.
Pakistan is poised to become the first South Asian country to join the Arab Monetary Fund's (AMF) Buna network by connecting its central bank-backed Raast payment system. This integration, anticipated by the end of the year, aims to significantly reduce remittance costs by approximately 30% for millions of Pakistani workers in the Persian Gulf. The move is intended to offer a more efficient and formal alternative to traditional correspondent banking and informal channels like hawala and hundi.
In fiscal year 2026, Pakistan received a record $41.6 billion in remittances, a crucial financial anchor for its economy, with over 90% directly supporting household consumption. Historically, sending money home involved multiple intermediary banks, leading to high fees and settlement delays of 24 to 72 hours. This inefficiency fostered the growth of informal networks that, while faster, bypass formal financial channels and pose risks of money laundering and undocumented wealth.
The integration of Raast with Buna, a regional payment clearing and settlement organization linking banks across 22 Arab countries, directly connects the Gulf diaspora to Pakistani bank accounts and digital wallets. The Pakistani Rupee (PKR) has been added as a settlement currency on the Buna platform, which already supports USD, EUR, AED, SAR, EGP, and JOD. This direct system-to-system connectivity eliminates intermediary banks, potentially cutting settlement times and fees, and is expected to shift significant remittance flows from informal to formal channels.