Arab Monetary Fund, SBP sign MoU to facilitate cross-border remittances

November 03, 2023 (MLN): The Arab Monetary Fund (AMF) and the State Bank of Pakistan (SBP) on Friday joined hands to establish a framework of cooperation between Buna, the cross-border payment system and Raast, Pakistan’s Instant Payment System to facilitate Cross-border remittances, said a press release issued today.

Buna is the cross-border payment system operated by the Arab Regional Payments Clearing and Settlement Organization “ARPCSO,” which is owned by The Arab Monetary Fund “AMF.”

Buna aims to enable financial institutions and central banks in the Arab region and beyond to send and receive payments in local currencies as well as key international currencies in a safe, cost-effective, risk-controlled, and transparent environment. 

In a ceremony hosted by AMF, Dr Abdulrahman Bin Abdullah Al Hamidy, Director General Chairman of the Board of AMF, and Mr Jameel Ahmad, Governor of the SBP, signed the MoU in Abu Dhabi.

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, 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 payment access for individuals and corporates, he added.

Speaking at this occasion, Mr Jameel Ahmad said that this MoU is a significant strategic achievement that opens the door to a 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, he noted.

He further added that 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% of Pakistan’s total remittances received from Arab countries, SBP is committed to completing the necessary work and operationalising the connectivity between Raast and Buna in the shortest possible time.

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