In a move aimed at strengthening economic ties and streamlining cross-border remittances, the Arab Monetary Fund (AMF) and the State Bank of Pakistan (SBP) have officially inked a Memorandum of Understanding (MoU). The signing ceremony took place in Abu Dhabi and was attended by Dr. Abdulrahman Bin Abdullah Al Hamidy, Director General Chairman of the Board of AMF, and Jameel Ahmad, Governor of SBP.
The MoU establishes a framework for cooperation between two vital payment systems: Buna, the cross-border payment system managed by the Arab Regional Payments Clearing and Settlement Organization (ARPCSO), owned by AMF, and Raast, Pakistan’s Instant Payment System.
Buna, operated by ARPCSO and owned by AMF, is a cross-border payment system designed to facilitate secure and efficient international transactions. Roast, on the other hand, is Pakistan’s Instant Payment System, built on international standards (ISO 20022), and offers a simple, free, fast, interoperable, and secure payment solution for customers.
The integration of Raast with Buna is expected to pave the way for enhanced cross-border remittances between the Arab region and Pakistan through official channels. This collaboration is set to benefit individuals and businesses by providing instant, safe, and cost-effective cross-border payment options. Moreover, it aims to strengthen economic, financial, and investment connections between Arab countries and Pakistan.
Dr. Abdulrahman Bin Abdullah Al Hamidy, Director General Chairman of AMF and Chairman of the Board of ARPCSO, expressed his enthusiasm for this strategic partnership, emphasizing Buna’s commitment to linking various regions and fortifying economic, financial, and investment bonds between the Arab region and its global partners. He underscored the objective of innovating cross-border payment solutions to offer secure and efficient cross-border instant payment access for individuals and corporations. Additionally, he highlighted the plan to reduce costs and processing times to increase cross-border remittances. This initiative aligns with Buna’s mission to adhere to the highest compliance standards and connect the Arab region with its primary global partners.
Jameel Ahmad, Governor of SBP, shared his thoughts on the collaboration, describing the MoU as a significant strategic achievement that will facilitate closer connections between Pakistan and the Arab region. He emphasized that this collaboration is in line with SBP’s vision to leverage cross-border integrations to advance the development of an innovative Digital Financial Services ecosystem. This partnership is poised to promote economic growth, and financial inclusivity, and secure cross-border financial transactions for the benefit of individuals and businesses in both regions.
