KARACHI: Pakistani Prime Minister Imran Khan on Tuesday launched Raast, a digital payment system for instant person-to-person (P2P) transactions, in a push to enhance the share of the formal economy and increase financial inclusion.
Pakistan has the third largest unbanked adult population globally with about 100 million adults without a bank account, according to the World Bank. Phone-based banking has proven a hit among the poor in other emerging markets such as China, India and Kenya. Those efforts have been driven by private sector companies that offer user-friendly, affordable apps.
Whether Pakistan’s state system will prove as nimble and easy to use remains to be seen. And it will initially require help from the very same banks that for decades have shut out low-income Pakistanis with pricey fees.
Raast is Pakistan’s first instant payment system that enables end-to-end digital payments among individuals, businesses and government entities. The state-of-the-art Faster Payment System will be used to settle small-value retail payments in real time while at the same time provide cheap and universal access to all players in the financial industry including commercial and microfinance banks, government entities and fintechs, according to State Bank of Pakistan.
“The Raast initiative is to facilitate the common man to avail banking services through mobile phones,” PM Khan said at the launching ceremony in Islamabad. “It would create ease for the common man, especially those who were afraid of going to banks and it would also cut their cost of payments.”
The premier said the country’s 220 million population could be a great asset if brought into the formal economy through digital means. If the country did not take advantage of technological advancements, the majority of the population would become a burden, he added.
“Pakistan has one of the lowest saving rates in the world. The utilization of our banking system is low, this results in a low tax-to-GDP ratio,” PM Khan said. “The initiative will improve our saving rates because countries prosper only when the saving rates are improved.”
Central bank governor Dr. Reza Baqir said the initiative had been launched on the directives of the prime minister to ensure maximum financial inclusion.
“Raast person-to-person payment system will bring revolution in the country for financial inclusion by making it easier for people make transactions with each other,” Baqir said.
Explaining the four main features of the new system, the governor said: “The payment would be made in seconds, secondly there would be no banking fee, thirdly, mobile phone number would be their Raast ID number, and it would be linked to their bank accounts.”
The governor said due to measures taken to promote digital banking in Pakistan, the volume of e-banking transactions had increased to $500 billion during the last fiscal year “which is more than our $370 billion GDP.”
“Each year our e-banking transactions are surging by 30 percent,” he added.
Pakistan launches country’s first instant payment system for P2P transactions
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Pakistan launches country’s first instant payment system for P2P transactions
- Raast is Pakistan’s first instant payment system enabling end-to-end payments for individuals, businesses and government entities
- Pakistan has the third largest unbanked adult population globally with about 100 million adults without a bank account
Pakistan combing for perpetrators after deadly Balochistan attacks
- Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-locals
- Militants stormed banks, jails, police stations and military installations, killing 31 civilians and 17 security personnel, the Balochistan chief minister says
QUETTA: Pakistan forces were hunting on Sunday for the separatists behind a string of coordinated attacks in restive Balochistan province, with the government vowing to retaliate after more than 190 people were killed in two days.
Around a dozen sites remained sealed off, with troops combing the area a day after militants stormed banks, jails, police stations and military installations, killing at least 31 civilians and 17 security personnel, according to the chief minister of Balochistan province.
At least 145 attackers were also killed, he added, while an official told AFP that a deputy district commissioner had been abducted.
That figure includes more than 40 militants that security forces said were killed on Friday.
Mobile internet service across the province has been jammed for more than 24 hours, while road traffic is disrupted and train services suspended.
After being rocked by explosions, typically bustling Quetta lay quiet on Sunday, with major roads and businesses deserted, and people staying indoors out of fear.
Shattered metal fragments and mangled vehicles litter some roads.
"Anyone who leaves home has no certainty of returning safe and sound. There is constant fear over whether they will come back unharmed," Hamdullah, a 39-year-old shopkeeper who goes by one name, told AFP in Quetta.
The chief minister, Sarfraz Bugti, told a press conference in Quetta that all the districts under attack were cleared on Sunday.
"We are chasing them, we will not let them go so easily," he said.
"Our blood is not that cheap. We will chase them until their hideouts."
The Baloch Liberation Army (BLA), the province's most active militant separatist group, claimed responsibility for the attacks in a statement sent to AFP.
The group, which the United States has designated a terrorist organisation, said it had targeted military installations as well as police and civil administration officials in gun attacks and suicide bombings.
Interior Minister Mohsin Naqvi, who flew to Quetta late Saturday to join funerals, claimed without offering any evidence that the attackers were supported by India.
"We will not spare a single terrorist involved in these incidents," he said.
In a press conference on Sunday, Pakistan Defence Minister Khawaja Asif likewise claimed the attackers enjoyed links to India and pledged to "completely eliminate these terrorists".
India denied any involvement.
"We categorically reject the baseless allegations made by Pakistan, which are nothing but its usual tactics to deflect attention from its own internal failings," said foreign ministry spokesman Randhir Jaiswal on Sunday.
'BROAD DAYLIGHT'
Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-local Pakistanis in the mineral-rich province bordering Afghanistan and Iran.
Saturday's attacks came a day after the military said it killed 41 insurgents in two separate operations in the province.
The insurgents released a video showing group leader Bashir Zaib leading armed units on motorcycles during the attack.
Another clip claimed to show the abducted senior official from Nushki district.
In another district, militants freed at least 30 inmates from a district jail, while seizing firearms and ammunition. They also ransacked a police station and took ammunition with them.
"It was one of the most audacious attacks in the region in recent years, as unlike other attacks, it took place in broad daylight," Abdul Basit at the S. Rajaratnam School of International Studies in Singapore told AFP.
"It is alarming that militants, with coordinated manpower and strategic acumen, have now reached the provincial capital," he added.
Several of the BLA's videos featured women insurgents, while Defence Minister Asif said at least one of the suicide bombers was a young woman.
"They continue to showcase women strategically in high-visibility attacks," Basit said.
Pakistan's poorest province and largest by landmass, Balochistan lags behind the rest of the country in almost every index, including education, employment and economic development.
Baloch separatists accuse Pakistan's government of exploiting the province's natural gas and abundant mineral resources, without benefiting the local population. The government denies this.
The BLA has intensified attacks on Pakistanis from other provinces working in the region in recent years, as well as foreign energy firms.
Last year, the separatists attacked a train with 450 passengers on board, sparking a deadly two-day siege.
