The Arab Monetary Fund (AMF) and the State Bank of Pakistan (SBP) have signed an MoU to promote cross-border remittances between the Arab region and Pakistan.
SBP and AMF Signs an MoU
According to a joint statement published by SBP and AMF, Dr Abdulrahman Bin Abdullah Al Hamidy, Director General Chairman of the Board of AMF, and Jameel Ahmad, Governor SBP, signed a Memorandum of Understanding (MoU) on Friday in Abu Dhabi at a ceremony organized by the Arab Monetary Fund (AMF).
Furthermore, the Memorandum of Understanding (MOU) was signed to establish a framework of collaboration between Buna, the cross-border payment system administered by Arab Regional Payments Clearing and Settlement Organization (ARPCSO), which is owned by AMF, and Raast, Pakistan’s Instant Payment System.
Moreover, the Arab Regional Payments Clearing and Settlement Organization “ARPCSO,” which is owned by The Arab Monetary Fund “AMF,” operates the Buna cross-border payment system.
Raast P2P Payment Gateway
While the SBP “Raast” Instant Payment System is a transformative endeavor based on the cutting-edge international standard ISO 20022 that promises to be simple, free, fast, interoperable, and secure for clients.
However, the combination of Raast and Buna intends to promote official cross-border remittances between the Arab region and Pakistan.
Furthermore, individuals and businesses would profit from this initiative not only through rapid, safe, and cost-effective cross-border payments, but also by strengthening economic, financial, and investment relations between Arab countries and Pakistan.
Director General Chairman AMF Statement
Dr. Abdulrahman Bin Abdullah Al Hamidy, Director General Chairman AMF and Chairman of the Board of ARPCSO, commented on the MoU, saying that this strategic collaboration with Raast demonstrates Buna’s commitment to connecting different regions and reinforcing economic, financial, and investment ties between the Arab region and its main global partners.
Additionally, this aligns with the common objective of inventing cross-border payment solutions to provide individuals and corporations with safe and efficient cross-border instant payments access, he said.
“We also aim to increase cross-border remittances by reducing costs and processing times, this initiative confirms the global character of Buna which adheres to the highest compliance standards to connect the Arab region with its main global partners in line with the vision of its founders, their Excellencies in the Council of Central Bank Governors.
On this occasion, we would like to thank the governor of the State Bank of Pakistan and his colleagues for their instrumental support to this initiative”, he added.
Governor SBP Statement
Furthermore, speaking on the occasion, Jameel Ahmad, Governor SBP said that “This MoU is a significant strategic achievement that opens the door to closer connection between Pakistan and the Arab region.”
He said that “This collaboration between SBP and AMF is in line with our vision to leverage cross border integrations to complement the objective of building an innovative Digital Financial Services ecosystem.“
To read our blog on “SBP & CDC launched RAAST payments facility for Mutual Funds,” click here.
