Pakistan Seeks Faster, Cheaper Remittances via Arab Buna Link
Pakistan is examining a potential integration with the Buna payment platform, an Arab regional system, in a move aimed at reducing the costs and processing times associated with remittances from the Persian Gulf, according to Nikkei Asia reporting. State Bank of Pakistan officials are reviewing the infrastructure of the cross-border payment mechanism operated by the Arab Monetary Fund.
Remittances from millions of Pakistani workers residing in Gulf Cooperation Council countries represent a vital pillar of the national economy. Linking domestic payment rails with the Buna system could streamline these financial transfers, bypassing traditional correspondent banking networks that often introduce high transaction fees and multi-day clearing delays, as reported by Nikkei Asia.
The Arab Monetary Fund launched the Buna platform to facilitate multi-currency settlement of cross-border payments among Arab countries and their major trading partners. By connecting to this network, participating central banks can process transactions in regional currencies as well as major international currencies through a single, centralized compliance and messaging infrastructure.
State Bank of Pakistan representatives have engaged in preliminary evaluations regarding the technological and regulatory requirements needed to establish a connection with the platform. Discussions remain in an exploratory phase while authorities assess potential integration timelines and technical compatibility with Pakistan’s domestic instant payment systems.