The State Bank of Pakistan is expected to introduce a QR code system under the Raast instant payment service for the purchase of sacrificial animals during Eid al-Adha.
At the 17th conference titled “Mobile Commerce 2024,” the State Bank’s Deputy Director, Ahmed Sameer, stated that the QR system will likely be introduced this Eid.
He mentioned:
We are currently working with 25 banks and have selected 50 major livestock markets to enable the payment system through QR codes, facilitating payments for the public.
He highlighted the importance of this project for livestock breeders and sellers.
He added that this initiative aims to help people and traders transact securely to purchase sacrificial animals. Additionally, it assists banks in potentially handling livestock purchases worth 550 to 600 billion rupees through digital banking during this annual religious festival.
The Deputy Director claimed that using QR codes for payments will significantly change the payment process, as the costs associated with installing point-of-sale (POS) machines present their challenges.
The QR payment system has also enabled small-scale traders to accept online payments, reducing reliance on cash in the economy. Traders can now easily install QR codes to receive online payments instantly.
The QR code system will be activated in 15 cities, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, where State Bank offices are present.
Yahya Khan, Chief Digital Banking Officer of Digital Banking Group at Bank Alfalah Limited, mentioned that around 8 to 10 trillion rupees in cash are circulating in Pakistan, which is a high ratio compared to GDP and cash.
Meanwhile, Pakistan’s Finance Minister, Muhammad Aurangzeb, recommended discontinuing the 5000 rupee note.
Mohammad Humayun Sajjad, CEO of Mashreq Bank, said that the lower operating costs of digital banks, the reduction in physical branches, and the promotion of digital banking would enable them to offer higher profit margins to depositors for mobile financing.
