ABU DHABI, UAE: The State Bank of Pakistan (SBP) and Arab Monetary Fund have signed a Memorandum of Understanding (MoU) to facilitate cross-border remittances between the Arab region and Pakistan.
The MoU was signed in Abu Dhabi on Friday in a ceremony hosted by the Arab Monetary Fund (AMF).
The Director General Chairman of the Board of the Arab Monetary Fund (AMF) Dr. Abdulrahman Bin Abdullah Al Hamidy, and the Governor of the State Bank of Pakistan Jameel Ahmad signed the MoU.
The MoU is signed to establish a framework of cooperation between Buna, the cross-border payment system operated by Arab Regional Payments Clearing and Settlement Organization “ARPCSO”, owned by AMF, and Raast, Pakistan’s Instant Payment System.
The integration of Raast with Buna aims to facilitate Cross-border Remittances between the Arab region and Pakistan through formal channels. This initiative will benefit individuals as well as businesses not only through instant, safe and cost-effective cross border payments, but also by strengthening economic, financial, and investment ties between the Arab countries and Pakistan.
Commenting on this MoU, the Director General Chairman of the Board of The Arab Monetary Fund (AMF) and Chairman of the Board of ARPCSO Dr. Abdulrahman Bin Abdullah Al Hamidy said, “This strategic collaboration with Raast underscores Buna’s commitment to continue connecting different regions together and reinforcing economic, financial, and investment ties between the Arab region and its main global partners. This resonates with the shared vision of innovating cross-border payment solutions to offer safe and efficient cross-border instant payments access for individuals and corporates”.
Dr. Abdulrahman added “We also aim to increase cross-border remittances by reducing costs and processing times, this initiative confirms the global character of Buna which adheres to the highest compliance standards to connect the Arab region with its main global partners in line with the vision of its founders, their Excellencies in the Council of Central Bank Governors. At this occasion, we would like to thank the Governor of the State Bank of Pakistan and his colleagues for their instrumental support to this initiative.”
Speaking at this occasion, the Governor of the State Bank of Pakistan Jameel Ahmad said, “This MoU is a significant strategic achievement that opens the door to closer connection between Pakistan and the Arab region. This collaboration between SBP and AMF is in line with our vision to leverage cross border integrations to complement the objective of building an innovative Digital Financial Services ecosystem”
Jameel Ahmad added “The integration of the two payment systems will increase remittances to Pakistan through formal channels, with enhanced speed, safety, and savings in these cross-border transactions. With over 5 million Pakistanis residing in the Arab region and around 55 percent of Pakistan’s total remittances received from Arab countries, SBP is committed to complete the necessary work and operationalize the connectivity between Raast and Buna in the shortest possible time.”