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Pakistan’s Digital Transactions Surge: 88% of Retail Payments Now Digital Pakistan’s financial ecosystem is experiencing a significant digital shift, with digital channels processing 88% of all retail transactions. Mobile banking apps, branchless banking (BB) wallets, and e-money wallets collectively handled 1,450 million transactions worth Rs. 24 trillion in Q2-FY25. This marks a 12% increase in volume and a 28% rise in transaction value, as per the State Bank of Pakistan’s (SBP) Quarterly Payment Systems Review. The expansion of digital banking services is reflected in the increasing number of users across different platforms: 21 million mobile banking users (7% increase). 4.7 million e-money wallet users (13% increase). 64.3 million BB wallet users (7% increase). 13.3 million internet banking users (7% increase). This growing user base is a testament to the increasing trust and adoption of digital financial services in Pakistan. E-commerce transactions have seen substantial growth, indicating a shift toward cashless transactions: 152 million e-commerce transactions, up 30% in volume. Total value reached Rs. 193 billion, reflecting a 32% increase. 8% (12.8 million transactions) were made via cards, while 92% (139.5 million) were conducted through digital wallets/accounts. In terms of value, cards contributed 33%, while digital wallets accounted for 67%. Merchant payments through 115,177 POS-enabled merchants using 151,646 terminals also experienced growth: 89 million in-store transactions (7% increase). Rs. 510 billion total transaction value (19% increase). Additionally, retail and kiryana stores accepting QR code or BB wallet payments processed 22.1 million transactions worth Rs. 58 billion, marking 4% and 9% growth, respectively. Pakistan’s digital financial ecosystem is supported by SBP-operated payment systems, which have played a crucial role in accelerating digital payments: Raast processed 296 million transactions worth Rs. 6.4 trillion in Q2-FY25. Since its launch, Raast has facilitated 1,144 million transactions valued at Rs. 26 trillion. RTGS settled large-value transactions worth Rs. 330 trillion, marking a 19% increase in value. These systems have significantly improved the speed, reliability, and efficiency of digital transactions in Pakistan. Retail transactions also showed strong growth: 2,143 million transactions, reflecting an 11% increase in volume. Total transaction value reached Rs. 154 trillion, a 12% rise. This growth was largely driven by: Mobile banking transactions Internet banking payments Over-the-counter (OTC) banking services Pakistan’s journey towards a cashless economy is being propelled by SBP’s strategic initiatives and partnerships with banks, fintech firms, and payment service providers. As digital payments continue to expand, SBP remains focused on: Enhancing financial inclusion. Improving payment system efficiency. Encouraging innovation in digital banking. Conclusion: Digital Payments Are Reshaping Pakistan’s Economy The rapid growth in digital transactions, increasing user adoption, and expansion of digital payment infrastructure signal a strong shift towards a digital financial ecosystem in Pakistan. With continued regulatory support and technological advancements, the country is on track to further drive financial inclusion and economic digitization.

Pakistan’s external account exhibited a notable improvement in the first eight months of FY25 (July-February), posting a $691 million current account surplus. This shift from a $1.73 billion deficit in FY24 is primarily driven by a 32% year-on-year increase in remittances, which reached $24 billion by January 2025. However, external pressures are mounting, as imports continue to rise, leading to monthly deficits in January ($399M) and February ($12M) after three months of surplus. Key Trends & Factors 1️⃣ Surplus vs. Last Year’s Deficit 2️⃣ 11% Growth in Imports Leading to Deficits 3️⃣ Financial Inflows & Economic Outlook Conclusion: A Balancing Act for Pakistan’s External Account Despite the positive impact of remittances, rising imports and slow financial inflows pose risks to the external account. The coming months will be critical in determining whether Pakistan can sustain a surplus or face a growing deficit, especially with global commodity price fluctuations and pending financial inflows from international institutions. While the current account surplus signals a positive shift, sustained external stability will depend on managing import growth, securing financial inflows, and maintaining remittance momentum. The expected IMF funding and other foreign inflows will be critical in addressing financing gaps. Moving forward, Pakistan must focus on export diversification, investment inflows, and trade balance improvements to ensure long-term economic resilience.

The inflow of remittances from overseas workers into Pakistan stood at $3.1 billion in February 2025, reflecting a 3.8% rise from the $3 billion received in January 2025, according to data released by the State Bank of Pakistan (SBP) on Monday. On a year-on-year basis, remittances surged by 38.6% compared to the $2.25 billion recorded in February 2024. Cumulatively, during the first eight months of FY25 (July-February), Pakistan received $24.0 billion in remittances, marking a significant 32.5% increase from the $18.1 billion received in the same period of FY24. Home remittances continue to play a crucial role in strengthening Pakistan’s external account, boosting economic activity, and improving the financial well-being of remittance-dependent households. Breakdown of Remittance Sources With a steady rise in remittance inflows, Pakistan continues to benefit from the financial contributions of its overseas workforce, supporting both individual households and the broader economy.

This complete guide explains its benefits, eligibility, required documents, and step-by-step process for overseas Pakistanis. Looking to open a Roshan Digital Account (RDA)? Open your account today and invest in Naya Pakistan Certificates, real estate, and the stock market—100% online!” 🔹 What is Roshan Digital Account? The Roshan Digital Account (RDA) is a secure, hassle-free banking solution designed for Non-Resident Pakistanis (NRPs). It allows expats to open and operate a Pakistani bank account online from anywhere in the world. With RDA, you can:✅ Send & receive money in PKR or foreign currency✅ Invest in Naya Pakistan Certificates (NPCs) for high returns✅ Buy property in Pakistan through Roshan Apna Ghar✅ Trade in the stock market via PSX✅ Pay bills, school fees, and transfer funds easily✅ Repatriate funds freely without restrictions ✅ Best part? No need to visit a bank—apply online in just 48 hours! 🔹 Who Can Open a Roshan Digital Account? To open an RDA, you must be:✔ A Non-Resident Pakistani (NRP)✔ A Pakistani with declared assets abroad✔ A Foreign National of Pakistani Origin (NICOP/POC holder) 🔹 Resident Pakistanis can open an RDA only in foreign currency. 🔹 Documents Required to Open an RDA 📌 Valid Passport (Pakistani or foreign)📌 CNIC/NICOP/POC (for Pakistani-origin foreigners)📌 Proof of NRP Status (Visa, Work Permit, etc.)📌 Proof of Income/Employment (Job letter, salary slip, or business docs)📌 Recent Photograph & Signature Specimen ✅ No paperwork, no bank visits – everything is done online! 🔹 How to Open a Roshan Digital Account? (Step-by-Step Process) Opening an RDA is simple and takes just 48 hours: 1️⃣ Choose a Bank Top Pakistani banks offering RDA: UBL Roshan Digital Account (Recommended) HBL, Meezan, MCB, Standard Chartered, and others 2️⃣ Fill Out the Online Form Enter personal details Upload required documents Choose account type (PKR, USD, GBP, etc.) 3️⃣ Verification & Approval Bank verifies documents & identity Account is activated within 24-48 hours 4️⃣ Fund Your Account & Start Using It Transfer money from your foreign bank Invest, pay bills, and manage funds online ✅ It’s that simple! 🔹 Why Choose a Roshan Digital Account? 🔹 100% Online & Hassle-Free – Open & operate from anywhere🔹 Earn Up to 7% in USD via Naya Pakistan Certificates🔹 Invest in Stocks, Real Estate & Government Bonds🔹 Instant Fund Transfers & No Minimum Balance🔹 Withdraw & Repatriate Money Anytime ✅ Did you know? The Naya Pakistan Certificate offers higher returns than bank deposits in many countries! 🔹 UBL Roshan Digital Account – The Best Choice for Expats Looking for the best bank for your RDA? ✅ UBL Roshan Digital Account offers:✔ Quickest processing times✔ High investment returns✔ Seamless online banking Roshan Digital Account vs. Regular Bank Account – Key Differences Feature Roshan Digital Account (RDA) Regular Bank Account Who Can Open? Non-Resident Pakistanis (NRPs), Foreign Nationals of Pakistani Origin Only Resident Pakistanis Opening Process 100% Online (No branch visit required) Requires physical visit to a bank branch Currencies Available PKR, USD, GBP, EUR, & other major currencies Mostly PKR (foreign currency accounts are limited) Processing Time 24-48 Hours Several days to weeks Fund Repatriation Allowed without restrictions Limited or requires approvals Investment Options Naya Pakistan Certificates, Stock Market, Real Estate, Fixed Deposits Limited investment options Account Management Fully online through internet banking & mobile apps Requires branch visits for many services Minimum Balance Requirement No minimum balance required in most banks Varies by bank and account type Utility & Bill Payments Yes – Can pay bills, school fees, & donations Yes, but mainly for local users Tax Benefits No tax on profits from Naya Pakistan Certificates for NRPs Profits & deposits subject to tax deductions Loan & Financing Options Roshan Apna Ghar (Home Loan), Roshan Apni Car (Car Loan) Standard loans with more eligibility criteria Best For Non-Resident Pakistanis looking for easy banking, high-return investments & global transactions Resident Pakistanis for local banking & transactions 👉 100% online & approved within 48 hours! Ready to apply? Let ISTIQEME help you! Authorized GCC Partners for UBL Digital Banking ProductsApply Now | +971-527194185 or ubl.rda@istiqeme.nethttp://www.istiqeme.net

The State Bank of Pakistan (SBP) has released the Raast Participation Criteria, setting minimum requirements for entities interested in joining the Raast platform. These criteria ensure that participants possess the necessary functional and technical capabilities to offer digital payment services through Raast. Launched in 2021, Raast is an advanced instant payment system designed to enable quick, secure, and efficient fund transfers across Pakistan. The system supports bulk payments, person-to-person (P2P) transfers, person-to-merchant (P2M) transactions, and payment initiation services. Since its inception, 44 entities, including SBP-regulated and government organizations, have been onboarded as participants. To further drive the adoption of Raast and accelerate the digitization of the economy, the new Raast Participation Criteria aim to expand accessibility, promote digital payments, and foster innovation and competition in the financial sector. Who Can Participate in Raast? The following entities are eligible to apply for Raast participation: Entities currently in the licensing process with SBP and holding valid in-principle approval may also apply. Participant Categories Raast participants are classified into four categories: Onboarding Process Entities interested in joining Raast as DSPs, DNSPs, or PISPs must submit applications to SBP at Raast@sbp.org.pk. Those wishing to become Indirect Participants should coordinate with registered DSPs or DNSPs. Upon receiving an application, SBP will request the signing of a Non-Disclosure Agreement (NDA). Once the NDA is signed, the applicant will receive the Integration Specifications Package and be assigned a Relationship Officer for guidance. The applicant must review the specifications and sign the Participant Agreement within 10 working days. Following this, the applicant must: Submit a detailed integration project plan with timelines. Complete technical integration and provide a final report to SBP. Once SBP is satisfied with the integration process, conditional approval will be granted for a pilot phase. Upon successful completion, the participant will receive approval for commercial operations. If the applicant fails to meet SBP’s requirements at any stage, SBP reserves the right to terminate the process. It is important to note that onboarding an unregulated entity onto Raast does not imply SBP’s regulatory oversight of that entity. Encouraging Digital Payment Growth With the introduction of the Raast Participation Criteria, SBP aims to simplify the onboarding process for potential participants, significantly increase the number of entities using Raast, and boost digital payment adoption. This initiative is expected to encourage greater innovation and competition within the financial services market.

Analytical Review of the Surge in Home Remittances Overview of Growth Trends Home remittances experienced a significant 32.89% increase during the July-December 2024 period compared to the same timeframe the previous year. Total inflows stood at $17.845 billion, surpassing the $13.845 billion recorded in the corresponding period of 2023 and the $14.435 billion seen in July-December 2023. This sharp increase exceeds the 24.9% growth recorded in July-December 2021, making it a notable recovery. However, this comparison must be understood in the context of the sharp decline in remittances in 2022, which was largely attributed to flawed foreign exchange policies under former Finance Minister Ishaq Dar. His intervention in currency markets, despite declining foreign reserves, led to multiple exchange rates and discouraged the use of official banking channels, pushing remitters toward informal systems such as hundi/hawala. Policy Impact and Market Correction The upward trend in remittances began in July-December 2023, coinciding with the government’s policy shift and agreement with the International Monetary Fund (IMF) for a $3 billion Stand-By Arrangement. The decision to abandon interventionist currency policies and incentivize remittances through formal channels played a crucial role in reversing the previous decline. If this growth trajectory is projected to the end of the fiscal year (June 30, 2025), total remittances could reach approximately $35.69 billion. This would represent an increase of $4.45 billion compared to the $31.2 billion recorded in the 2021-22 fiscal year. However, while policy adjustments have contributed to this recovery, external economic factors and structural shifts also play a critical role. Macroeconomic Drivers of Remittance Growth A July 2024 working paper by the Asian Development Bank (ADB), titled Understanding the Drivers of Remittances to Pakistan, identifies key macroeconomic factors influencing remittance flows: The study also highlights that remittance patterns are shaped by broader structural factors beyond these macroeconomic indicators. Migrants’ personal motivations—such as supporting families, investment opportunities, and perceptions of economic stability—play a critical role in sustaining remittance flows over time. Challenges Despite Positive Indicators While the government has cited a record-low Consumer Price Index (CPI) of 2.4% in January 2025, this figure does not reflect real economic conditions. Several key challenges persist: Strategic Implications and Policy Considerations The ADB study reinforces the critical role of remittances in stabilizing Pakistan’s balance of payments. As global economic conditions remain uncertain, policymakers must adopt a forward-looking approach to ensure these inflows remain strong. The government’s current focus is twofold: While these measures are essential, they do not address deeper structural issues. The ongoing brain drain and mass deportations of undocumented workers highlight the lack of sustainable employment opportunities within Pakistan. To mitigate this, a broader economic reform strategy is needed, including: Conclusion While remittance inflows have surged, the underlying economic challenges remain unresolved. A sustainable long-term strategy requires not only supporting remittance growth but also fostering domestic economic stability through structural reforms. Without these measures, Pakistan risks remaining overly dependent on remittance inflows while failing to address its broader economic vulnerabilities.

Pakistan’s remittance inflows amounted to $3 billion in January 2025, reflecting a 3.2% decline compared to $3.1 billion in December 2024. However, on a year-over-year (YoY) basis, inflows surged by 25.2%, significantly higher than the $2.4 billion recorded in January 2024, according to data released by the State Bank of Pakistan (SBP). Cumulative Growth in FY25 The cumulative remittance inflows for the first seven months of FY25 (July–January) reached $20.8 billion, marking an increase of 31.7% compared to $15.8 billion in the same period of FY24. This upward trend highlights the growing contribution of overseas workers’ earnings to Pakistan’s foreign exchange reserves. Economic Impact of Remittances Home remittances serve as a critical pillar of Pakistan’s economy by: Country-Wise Breakdown of Inflows 1. Saudi Arabia – Largest Contributor 2. United Arab Emirates (UAE) – Moderate Monthly Increase, Strong Annual Growth 3. United Kingdom (UK) – Decline on Monthly Basis, Growth on Yearly Basis 4. United States (US) – Consistent Monthly Growth Key Takeaways This data underscores the critical role of remittances in stabilizing Pakistan’s economy and highlights potential areas for policy intervention to sustain and enhance inflows.

Cumulative inflows under the Roshan Digital Account (RDA) initiative have reached $9.34 billion since its inception in September 2020. According to data released by the State Bank of Pakistan (SBP) on Saturday, RDA inflows rose to $203 million in December 2024, reflecting a 9% increase from the $186 million recorded in November. Out of December’s total inflows, $13 million was repatriated, while $113 million was utilized locally. This leaves a net repatriable liability of $76 million for the month. Since the launch of RDA, $1.7 billion of the cumulative inflows has been repatriated, while $5.911 billion has been invested or used within Pakistan. The total net repatriable liability now stands at $1.73 billion. The number of RDA accounts opened also grew, reaching 778,713 by the end of December—an increase of 10,319 accounts from November’s total of 768,394. Of the outstanding liabilities, $1.208 billion is linked to Naya Pakistan Certificates (NPCs), with $460 million in conventional NPCs and $748 million in Islamic instruments. An additional $425 million is classified as “balances in accounts,” according to SBP data. Roshan Equity Investments also showed significant growth, climbing to $59 million in December, a 16% increase compared to the previous month.

The Roshan Digital Account (RDA) has emerged as a transformative financial platform for engaging the Pakistani diaspora, reaching cumulative inflows of $9.34 billion by December 2024. Launched in September 2020, the initiative has facilitated investments that have not only strengthened economic ties with overseas Pakistanis but also significantly contributed to Pakistan’s domestic economy. Utilization and Repatriation BreakdownOf the $9.34 billion inflows:$5.91 billion (63.3%) has been utilised locally.$1.7 billion (18.2%) has been repatriated abroad.$1.73 billion (18.5%) remains as net repatriable liability, underscoring a balanced framework that permits repatriation while stimulating local economic activity.The allocation of funds includes: Naya Pakistan Certificates (NPCs):$460 million in conventional NPCs.$748 million in Islamic NPCs.Roshan Equity Investments: $59 million.Other Liabilities: $39 million.Account Balances: $425 million.Indicators of Confidence and Economic IntegrationAccording to Ali Najib, Head of Equity Sales at Insight Securities, the RDA has facilitated net investments of $1.27 billion, reflecting the diaspora’s trust in Pakistan’s financial framework. He attributes this growth to: Attractive returns on NPCs.Tax benefits.Sharia-compliant investment options.The initiative’s fully digital process, coupled with seamless repatriation options and government-backed guarantees, has further enhanced investor confidence. Macroeconomic and Financial ImpactsAHL Research highlights the RDA’s role as a barometer of diaspora confidence, emphasizing its contribution to Pakistan’s economy: Diversified investment products have channeled over 63% of inflows into domestic ventures, including real estate and the stock market, stimulating economic activity.Flexible repatriation policies ensure ease of fund mobility without imposing restrictions, a critical factor in retaining diaspora engagement.Despite these successes, maintaining manageable net repatriable liabilities, currently at $1.73 billion, will be key to ensuring financial stability. Trends and Emerging PatternsHistorical data reveals two key trends: Peak Repatriations: Monthly repatriations peaked in mid-2022, followed by a gradual decline.Dominance of Local Utilization: A steady increase in locally utilized funds, underscoring the scheme’s effectiveness in driving domestic economic growth.Challenges and Strategic ConsiderationsWhile the RDA has successfully mobilized funds from Non-Resident Pakistanis (NRPs), sustaining this momentum will require: Promoting long-term investment avenues.Transparent governance and consistent macroeconomic policies.Enhanced marketing campaigns to address evolving diaspora needs.Global economic conditions, such as rising inflation and low international returns, have further amplified the appeal of RDA’s offerings. To ensure its sustained impact, Pakistan must focus on maintaining investor trust and providing competitive, diversified investment options. ConclusionThe RDA has proven to be a pivotal financial initiative, bolstering Pakistan’s foreign reserves and economic stability. By fostering trust and continuously adapting to the needs of the diaspora, the platform has not only strengthened the economic bridge between Pakistan and its expatriates but also set a foundation for sustained economic growth. Ensuring the initiative’s scalability and resilience in the face of global economic shifts will be critical in maximizing its long-term potential.

Remittances surge upwards in the last month of 2024 Pakistan’s remittance inflows reached $3.08 billion in December 2024, reflecting a 6% increase from the $2.92 billion recorded in November 2024, according to data released by the State Bank of Pakistan (SBP) on Friday. The inflows for December 2024 were also 29.3% higher compared to $2.38 billion in the same month the previous year. In the first half of FY25, remittances surged 33% year-on-year, reaching $17.8 billion, compared to $13.4 billion in the first half of FY24. These remittance inflows play a vital role in supporting Pakistan’s external account, boosting economic activity, and supplementing the incomes of households that depend on remittances. Finance Minister Muhammad Aurangzeb previously indicated that remittance inflows are expected to reach a record $35 billion in FY25, up from $30.25 billion in FY24. SBP Governor Jameel Ahmad also expressed confidence that the $35 billion target will be met by the end of the fiscal year. Breakdown of Remittances: