ECAP President Zafar Paracha on Raast-Powered Remittances
Pakistan’s remittance landscape is undergoing a quiet but powerful transformation. With the State Bank of Pakistan (SBP) approving the routing of home remittances through the Raast instant payment system, exchange companies are stepping into a faster, more transparent, and fully digital future.
To understand what this decision really means for overseas Pakistanis, the economy, and the common citizen, theboardroompk.com spoke with Mr. Zafar Paracha, President of the Exchange Companies Association of Pakistan (ECAP), who calls this move “historic” and “long overdue.”
“This Is a Historic Day for the Exchange Companies Sector”
TBR: Mr. Paracha, ECAP has welcomed SBP’s decision quite strongly. Why do you see this as such an important development?
Zafar Paracha: This is indeed a historic and highly positive step for the entire remittance ecosystem of Pakistan. For the first time, exchange companies are officially allowed to transfer home remittances directly into bank accounts and digital wallets through Raast, Pakistan’s instant payment system.
This approval addresses long-standing challenges related to speed, transparency, and accessibility. It reflects the State Bank of Pakistan’s trust in exchange companies and its commitment to modernizing financial services.
Raast and Remittances: What Changes for the Common Man?
TBR: For a layperson, how does routing remittances through Raast make life easier?
Zafar Paracha: In very simple terms, it means faster, safer, and cheaper remittances, Earlier, many overseas Pakistanis worried about delays or limited access in remote areas. With Raast, remittances can now be delivered instantly, even to people living in far-flung villages, directly into their bank accounts or mobile wallets.
There’s no unnecessary paperwork, fewer intermediaries, and complete transparency. This is digital finance working for the common citizen.
“SBP Responded Positively to ECAP’s Request”
Read more: Raast QR Insurance Payments Drive Pakistan’s Cashless Insurance Ecosystem
TBR: Was this something ECAP had been pushing for?
Zafar Paracha: Absolutely. ECAP had formally approached the State Bank of Pakistan, and I must acknowledge that SBP responded in a sympathetic and constructive manner, Previously, SBP had already allowed exchange companies to become part of the Pakistan Remittance Initiative (PRI). Allowing remittance transfers via Raast is a logical next step and a very practical advancement for the sector. We are grateful to the central bank for understanding ground realities and future needs.
Why Overseas Pakistanis Are the Biggest Winners
TBR: How will this decision impact overseas Pakistanis sending money home?
Zafar Paracha: Overseas Pakistanis are the biggest beneficiaries of this move. Now, their hard-earned money can reach families instantly, securely, and at very low cost. Whether the recipient lives in a big city or a remote town, Raast ensures equal access. This convenience will naturally encourage people to use formal and legal channels, which ultimately strengthens Pakistan’s economy.
Will This Boost Pakistan’s Remittance Inflows?
TBR: Do you expect an increase in remittance inflows because of this step?
Zafar Paracha: Yes, without a doubt. When systems are fast, transparent, and affordable, people trust them. This initiative will increase remittance inflows, reduce reliance on informal channels, and improve documentation. Both senders and receivers benefit, while the country gains stronger foreign exchange inflows.
Exchange Companies and the Vision of Digital Pakistan
TBR: How does this align with Pakistan’s broader digital vision?
Zafar Paracha: This is fully aligned with the Digital Pakistan vision and SBP’s objective of promoting a cashless economy exchange companies are committed to playing their full role in this transition. By integrating with Raast, we are embracing digital innovation while ensuring financial inclusion for millions of Pakistanis.
Final Word: A Turning Point for Pakistan’s Financial Future
TBR: Any final message for the public?
Zafar Paracha: This decision marks a turning point. It shows that Pakistan’s financial system is evolving in the right direction towards efficiency, transparency, and inclusion. Exchange companies stand ready to support SBP in making Raast a success and ensuring that remittances remain a strong pillar of Pakistan’s economy.