Remittances play critical role in Pakistan’s
economy and advocated for policy changes
payment accessibility for low-income households
Business Correspondent
Islamabad: Murtaza Ali, President of JazzCash, spoke at the International Association of Money Transfer Networks Conference (IAMTN). He stressed the need for faster cross-border payments. He also pointed out that remittances are crucial for Pakistan’s economy. Moreover, he urged for changes to improve access to digital payments for low-income and remote households.
Need for Policy Changes on Digital Remittances
Murtaza asked officials to exempt digital remittances from wallet-receiving limits. Currently, most mobile wallets have a limit of PKR 50,000. However, the average remittance size in Pakistan is between USD 350 and USD 400 (~PKR 110,000). Therefore, he believes lifting this limit will boost financial inclusion. It will also help underbanked communities join the formal financial system.
Record-Breaking Remittances and Financial Inclusion
During the first quarter of FY25, Pakistan received a record USD 8.8 billion in remittances. This amount reflects a 39% increase compared to last year. As a result, Murtaza praised the State Bank of Pakistan for its policies promoting digital payments. He added that these efforts improve financial inclusion and encourage the use of formal financial channels.
Interoperability and Cross-Border Payment Integration
In addition, Murtaza talked about the need for interoperability. This change would help customers send and receive money across different platforms easily. He also mentioned the upcoming integration of Pakistan’s RAAST system with the Arab region’s Buna platform. This integration is expected to strengthen cross-border payments from the Middle East.
JazzCash’s Role in Instant Payments
Murtaza shared JazzCash’s commitment to providing fast and reliable payment solutions through mobile wallets. He highlighted the potential of wallet-to-wallet transfers. These transfers can bypass traditional banking systems, allowing instant cross-border payments.
Collaboration for the Future of Remittances
In conclusion, Murtaza called for greater collaboration among financial institutions, regulators, and fintech platforms. He emphasized that such efforts are essential for ensuring remittances support millions of Pakistani families. By investing in new technology and building partnerships, Murtaza believes Pakistan can lead the global remittance industry.
