Islamabad – Pakistan has formally joined the Buna platform of the Arab Monetary Fund (AMF), a move aimed at modernizing its cross-border payment infrastructure and strengthening financial ties with the Arab world. The decision was disclosed on Thursday during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, where State Bank of Pakistan (SBP) Governor Jameel Ahmed briefed lawmakers.

Governor Ahmed told the committee that integration with Buna would make remittances from overseas Pakistanis faster, more secure, and more efficient. The platform will primarily support inflows from expatriates, safeguarding Pakistan’s foreign exchange reserves. However, outward remittances from Pakistan will not be allowed under the framework to protect the economy from unregulated capital outflows.

Buna Platform

Buna is the Arab Regional Payment System, a multi-currency, cross-border initiative launched in 2020 and owned by the AMF. It enables financial institutions to send and receive payments in Arab and international currencies. Presently, it supports currencies such as the Saudi Riyal and Emirati Dirham, with plans to expand to others including the Chinese Yuan, reinforcing regional integration and trade.

Impact on Remittances

Ahmed underscored that overseas remittances remain a critical lifeline for Pakistan’s economy. More than 5.5 million Pakistanis reside in Gulf states, including Saudi Arabia and the UAE. In the 2024-25 fiscal year, the country received $38.3 billion in workers’ remittances, with $9.34 billion from Saudi Arabia, $7.83 billion from the UAE, $5.99 billion from the UK, and $3.72 billion from the US.

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Highlighting progress under Pakistan’s own digital initiative, Raast, Ahmed said its transaction volumes had surged from around Rs 1 trillion annually at launch to now processing that volume in just nine days, reflecting rapid adoption.

Digital Transformation Goals

The SBP governor reiterated Pakistan’s commitment to building a cashless economy. By December 2026, the government plans to digitize all payments, including those by state-owned enterprises, across federal, provincial, and local levels. By 2028, the SBP aims to give 75 percent of the country’s youth access to digital financial services.

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To encourage wider adoption, five licenses have already been issued for digital payment providers, while the government has committed to absorbing the 0.5 percent merchant fee on transactions. Officials argue this reflects Islamabad’s commitment to financial modernization, stability, and reducing reliance on cash.The integration with Buna, Ahmed concluded, aligns with Pakistan’s digital finance vision by offering a modern, secure cross-border remittance system while reinforcing economic cooperation with Arab partners.