Disbursing remittances via Raast: SBP issues procedure for Exchange Companies

KARACHI: The State Bank of Pakistan (SBP) on Friday issued a detailed procedure for Exchange Companies (ECs) to disburse inward home remittances through Raast, following its earlier approval for such transactions, with the move aimed at strengthening digital payment channels, enhancing transparency, and enabling faster and more secure remittance flows into the country

In this regard, recently, SBP amended its instructions for exchange companies and allowed digital disbursement of home remittances through Raast, to support the initiatives of a cashless economy.

With this amendment, with prior approval and completion of on-boarding requirements, Exchange Companies (ECs) can now be credited directly remittances to beneficiaries’ bank accounts or wallets.

READ MORE: 1H workers’ remittances post 11pc growth YoY

As per directives of SBP, issued on Friday, now exchange company, which has obtained permission, is allowed to enter into an agreement with an authorised bank for disbursement of home remittances through Raast, subject to fulfilment of required terms and conditions and will ensure compliance with all relevant conditions issued by the SBP for this transaction.

The EC will not charge any fee from the beneficiary in case of receipt of home remittance on a free-send model (TT Charges Scheme).

The company will be responsible for providing a minimum set of information to the relevant bank for issuance of Electronic Proceeds Realisation Certificate (e-PRC) and no change in this agreement with the bank should be made without SBP’s prior approval.

In addition, it is the responsibility of the company to ensure that proposed agreement is in conformity with SBP’s regulations, including but not limited to applicable Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, and other related instructions.

Further, SBP has advised the Exchange Company to amend the draft agreement in line with the mentioned conditions and re-submit the revised final agreement with EPD for record purposes, before commencement of disbursement of inward home remittances through Raast.

Through this enablement, the beneficiaries receiving remittances through ECs can receive their funds in their accounts and wallets maintained with Banks, MFBs, or EMIs, in a safe and efficient manner. This facilitation is a step forward in achieving the overall national objective of cashless economy.

However, Malik Bostan Chairman Exchange Companies Association of Pakistan (ECAP) has welcomed the SBP’s move allowing exchange companies to disburse inward home remittances through Raast, calling it a major step toward promoting a cashless economy and improving the efficiency of remittance transactions.

He said the initiative would significantly reduce transaction time and provide greater convenience to beneficiaries, who will now be able to receive home remittances directly into their bank accounts without visiting exchange company offices.

He informed that the SBP has allowed exchange companies to enter into agreements with four banks Bank of Punjab (BOP), Habib Bank Limited (HBL), United Bank Limited (UBL) and Bank AL Habib, for the disbursement of home remittances through Raast.

According to Bostan, the measure aligns with the government’s and the SBP’s broader efforts to encourage remittance inflows through formal channels. He expressed confidence that the facility would help increase documented inflows, as ease and transparency are key factors for overseas Pakistanis when sending money home.

Pakistan is expected to receive around USD 42 billion in workers’ remittances by the end of the current fiscal year, compared with USD 38 billion recorded in the previous fiscal year (FY25), he said.

Bostan noted that while goods exports are currently under pressure, higher remittance inflows along with growth in defence-related exports are expected to help offset the decline and support the external account.

He also referred to the SBP governor’s projection that the country’s foreign exchange reserves are likely to reach USD20.20 billion by the end of the year, supported largely by improved inflows. With sufficient foreign currency inflows, Bostan said, the exchange rate is expected to show further improvement in the coming months.

Copyright Business Recorder, 2026