SBP Allows Exchange Companies Remittances via Raast

The State Bank of Pakistan (SBP) has issued a comprehensive procedural framework permitting exchange companies to disburse inward workers’ remittances through Raast, following its earlier approval aimed at strengthening digital payment infrastructure and improving the efficiency of remittance flows.

Under the updated framework, exchange companies that have secured prior regulatory approval and completed the prescribed onboarding process may route remittances directly into beneficiaries’ bank accounts or digital wallets via Raast. The SBP stated that the initiative supports national policy objectives of advancing a cashless economy, enhancing financial inclusion and improving transparency in cross-border remittance transactions.

In accordance with the directives, an approved exchange company may enter into a formal arrangement with an authorised bank for Raast-based disbursement, subject to compliance with conditions stipulated by the central bank. Under the free-send model, exchange companies are prohibited from charging beneficiaries any fees and are responsible for providing complete and accurate transaction data to the partner bank for issuance of an Electronic Proceeds Realisation Certificate (e-PRC).

The SBP emphasised that all such agreements must strictly comply with its applicable regulatory framework, including anti-money laundering (AML) and know-your-customer (KYC) requirements, and may not be modified without prior approval of the central bank. Exchange companies have also been directed to submit revised agreements to the relevant SBP department for record purposes before initiating operations under the new mechanism.

The facility enables beneficiaries to receive remittances in accounts and wallets maintained with commercial banks, microfinance banks and electronic money institutions, thereby broadening access across the formal financial system.

The development was welcomed by Malik Bostan, Chairman of the Exchange Companies Association of Pakistan, who noted that the facility is expected to significantly reduce transaction processing time and eliminate the need for beneficiaries to physically visit exchange company outlets. He further stated that the SBP has authorised exchange companies to collaborate with the Bank of Punjab, Habib Bank Limited, United Bank Limited and Bank AL Habib for Raast-enabled remittance disbursements.

Bostan added that the initiative is aligned with broader efforts to channel remittance inflows through documented and regulated channels and is expected to contribute to higher formal inflows. He noted that Pakistan is projected to receive approximately $42 billion in workers’ remittances by the end of the current fiscal year, compared to $38 billion in the preceding year.