Raast is Pakistan’s first instant payment system, built and operated by the State Bank of Pakistan (SBP). It enables zero-cost, real-time digital payments between individuals, businesses, and government entities — 24/7 — using a simple mobile number as a Raast ID, eliminating the need for long account numbers or IBANs. Since its launch, it has fundamentally changed how Pakistanis move money, and its growth shows no signs of slowing down.
What Is Raast? The Basics Every Pakistani Should Know
Raast — an Urdu word meaning “direct” or “correct path” — is more than just another banking app feature. It is the core digital payment infrastructure of Pakistan, much like India’s UPI or Brazil’s PIX. Owned and operated entirely by the SBP, Raast works silently behind the scenes every time you make an instant interbank transfer through your mobile banking app or internet banking portal. You do not need to download a separate app; your existing bank’s app already connects to it.
The system was designed to solve a real problem: Pakistan historically had very low electronic transaction volumes due to limited interoperability between banks, high transfer costs, and complicated account number requirements. Raast eliminates all three barriers in one stroke — connecting every financial institution to a single national infrastructure at near-zero cost to end users.
When Did Raast Launch and How Has It Grown?
Raast was officially launched on 11 January 2021, with its first phase covering bulk payments — enabling government agencies and large corporates to disburse salaries and vendor payments in bulk. The person-to-person (P2P) service followed in early 2022, and the person-to-merchant (P2M) payment layer was formally rolled out in late 2023.
The growth has been nothing short of extraordinary. Since its inception through June 2025, Raast has processed a total of 1.9 billion transactions amounting to PKR 44.3 trillion. To put that in perspective, transaction counts and values more than doubled in the fiscal year 2024–25 alone. As of mid-2025, the platform serves roughly 47 million users — a testament to how rapidly Pakistanis are embracing cashless payments.
How Does Raast Work? A Step-by-Step Breakdown
Understanding the Raast payment system is straightforward:
- Step 1: You initiate a transfer inside your bank’s mobile app or internet banking portal and select the Raast option.
- Step 2: Your bank routes the request through the SBP-operated Raast central infrastructure.
- Step 3: Raast validates the recipient’s details — either their IBAN or Raast ID (mobile number).
- Step 4: The receiving bank or wallet credits the recipient’s account instantly.
- Step 5: Both the sender and recipient receive a confirmation notification, typically within seconds.
The key innovation is that Raast works as infrastructure, not a standalone service. It connects all participating financial institutions — commercial banks like HBL, UBL, MCB, ABL, and NBP, as well as mobile wallets like JazzCash and Easypaisa — through a single interoperable network.
Raast ID: Your Mobile Number Is Your Bank Account
One of Raast’s most user-friendly features is the Raast ID. Instead of sharing a 24-digit IBAN, you simply link your mobile number to your bank account. Once registered, anyone can send money to you by entering just your phone number — they do not need to know which bank you use or your account details. Only one Raast ID is permitted per customer, and one account can be linked per ID. You can register your Raast ID through your bank’s mobile app, internet banking portal, a branch counter, or even via USSD — making it accessible even without a smartphone.
The Three Pillars of Raast: P2P, P2M, and Bulk Payments
1. Person-to-Person (P2P)
Raast P2P lets individuals send funds to each other instantly using either a Raast ID (mobile number) or IBAN. It is completely free of charge for end users, available round the clock including weekends and public holidays, and has no minimum transaction limit. This makes it ideal for everything from sending grocery money to a family member in Lahore to splitting a dinner bill with friends in Karachi.
2. Person-to-Merchant (P2M)
The P2M layer is Raast’s answer to card POS terminals — but cheaper and faster. Merchants can display a static QR code at their counter; a customer simply opens their banking app, scans the code, enters the amount, and pays instantly. Businesses can also generate dynamic QR codes that pre-fill the exact amount, so the customer just scans and taps “pay.” A third mode called Request to Pay (RTP) allows billers — utilities, schools, hospitals — to push a payment request directly to a customer’s app, which the customer then approves with one tap. As of mid-2025, over 838,000 merchants are actively using Raast P2M QR services across Pakistan.
3. Bulk Payments
The bulk payment feature was Raast’s very first use case. Government agencies like the Accountant General Pakistan Revenues (AGPR) use it for payroll, vendor disbursements, provident fund settlements, and advances. The majority of banks have now integrated this feature for corporate salary payments, dramatically cutting processing time compared to traditional batch-based transfers.
Zero Fees: Why Raast Is a Game-Changer for Ordinary Pakistanis
Traditional interbank fund transfers (IBFT) used to cost anywhere from Rs. 25 to Rs. 50+ per transaction. Raast eliminates this friction entirely — there are no charges for end users on P2P transactions. The SBP designed the platform on a cost-recovery model, ensuring digital payments remain affordable for Pakistanis of all socioeconomic backgrounds. For merchants adopting P2M QR payments, the government even launched a Rs. 3.5 billion subsidy scheme running from September 2025 to June 2026, reimbursing up to 0.5% per QR transaction so small shopkeepers and freelancers can go digital without any financial pain.
Raast and Pakistan’s Bigger Digital Economy Vision
Raast is not operating in isolation — it is the backbone of Pakistan’s broader financial inclusion strategy. The SBP has set an ambitious target for fiscal year 2025–26: all government payments, including salaries, pensions, social welfare disbursements, and vendor payments, will be routed through Raast. Welfare programs like Ehsaas can use Raast to ensure every rupee reaches the rightful recipient without middlemen or delays.
On the international front, Pakistan’s Raast portal has been linked with the Arab Monetary Fund’s Buna cross-border payment system, creating Pakistan’s first cross-border real-time payment link. Since the Gulf region — especially Saudi Arabia and the UAE — accounts for over $20 billion in annual remittances to Pakistan, this integration promises to make overseas money transfers faster and far cheaper for millions of Pakistani families.
In a further sign of institutional maturity, the SBP formally established Raast Payments Pakistan (Pvt) Ltd in FY 2024–25 as a wholly owned subsidiary dedicated to managing and scaling the platform — ensuring stronger governance and technological agility as transaction volumes continue to surge.
Security and Reliability You Can Trust
Raast is built on the internationally recognized ISO 20022 messaging standard — the same framework used by leading payment systems globally. Every transaction is authorized by the payer, and the system features enhanced data protection and fraud detection. Banks are required to provide instant SMS or email confirmation for every completed transaction, and a 24/7 helpdesk is available through your bank for any issues.
Frequently Asked Questions
Q: Is Raast free to use in Pakistan?
Yes. Raast P2P transfers are completely free for end users — no transaction fees, no hidden charges. The SBP designed it this way to promote digital financial inclusion across all income levels. For merchant QR payments under P2M, a government subsidy scheme is currently active to further reduce any costs for small businesses.
Q: Which banks support Raast in Pakistan?
All major commercial banks in Pakistan support Raast, including HBL, UBL, MCB, NBP, ABL, Bank Alfalah, Standard Chartered Pakistan, and others. Microfinance banks and major mobile wallets like JazzCash and Easypaisa are also connected to the Raast network. You can check with your specific bank or wallet provider to confirm Raast availability on their platform.
Q: What is the difference between Raast P2P and Raast P2M?
Raast P2P (Person-to-Person) is for sending money between individuals — perfect for family transfers, splitting bills, or paying friends. Raast P2M (Person-to-Merchant) is designed for paying businesses and shops using QR codes, merchant aliases, or a “Request to Pay” feature, making it ideal for retail shopping, utility bills, school fees, and e-commerce checkouts.
Q: Can Raast be used for international money transfers?
Raast is primarily designed for domestic transfers within Pakistan. However, through the Buna-Raast cross-border linkage launched in 2024, inbound remittances from Arab countries — including Saudi Arabia and the UAE — can now be received via Raast in real time. Full two-way international P2P functionality is expected to expand further as the platform evolves.
