Raast, Buna systems to be integrated within 8 months to facilitate real-time remittances from Gulf — Pakistani official

A man enters a foreign currency exchange shop in Islamabad on July 11, 2023. (AFP/File)
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Updated 25 November 2023
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Raast, Buna systems to be integrated within 8 months to facilitate real-time remittances from Gulf — Pakistani official

  • Arab Monetary Fund, State Bank of Pakistan this month agreed to establish a framework of cooperation to facilitate fund transfer in real time 
  • Central bank governor says the financial sector is vulnerable to climate change risks, cybersecurity poses a significant threat to financial stability

KARACHI: Raast, an instant payment system of Pakistan, will be integrated within next 8 months with Buna, a cross-border payment system of the Arab Monetary Fund (AMF), to facilitate remittances in real-time between Pakistan and the Gulf region, Pakistani central bank chief told Arab News on Friday.
Earlier this month, the AMF and the State Bank of Pakistan (SBP) had signed a memorandum of understanding (MoU) in Abu Dhabi to establish a framework of cooperation between Buna, which is operated by Arab Regional Payments Clearing and Settlement Organization (ARPCSO) and supported by all central banks in the region, and Pakistan’s Raast.
“We have targeted to complete the integration (of Raast and Buna) in six to eight months,” Jameel Ahmad, the SBP governor, told Arab News on the sidelines of the 8th Pakistan Banking Awards in Karachi.
The integration of Raast with Buna is aimed at facilitating cross-border remittances between the Gulf region and Pakistan through formal channels. This initiative will benefit individuals as well as businesses not only through instant, safe and cost-effective cross border payments, but also by strengthening economic, financial, and investment ties between the Arab countries and Pakistan.
“The biggest benefit of this integration will be instant transfer of funds from any member country of the Arab Monetary Fund, and secondly at a low cost,” Ahmad said. “These are the two key benefits but there are also other benefits, including security of the funds.”
The integration of payment systems will facilitate Pakistani workers living in the Gulf region, including Saudi Arabia and the United Arab Emirates (UAE) that are one of the major contributors to the remittance inflows to Pakistan. Saudi Arabia and the UAE provided employment to 77 percent of the Pakistani expatriate workers in 2022.
Speaking at the event earlier, the SBP governor said the central bank had made a strategic plan for the next five years, called ‘Vision 2028,’ a commitment to foster price and financial stability. The financial sector is particularly vulnerable to climate change risks through its lending, investment and insurance activities, he noted.
“Similarly, cybersecurity is another emerging challenge that poses a significant threat to financial stability and our effort to achieve sustainable financial inclusion,” Ahmad said.
In recent years, he noted, there had been a sharp increase in the number and sophistication of cyberattacks on financial institutions, and these attacks could result in significant financial losses as well as cause reputational damage and operational distress.
“To address these challenges, we need to work together to strengthen our regulatory framework, enhance our supervisory oversight, and build a culture of financial resilience,” the SBP governor said, adding this would require a concerted effort from the central, the banking sector, and other stakeholders.
About the state of economy, the SBP chief said the current account deficit had come down from 4.8 percent to 0.8 percent of the GDP.
“So again, we are on track to achieve a very manageable current account deficit. Hopefully it will not exceed 1.5 percent of GDP for the current fiscal year as well,” he said.


Pakistan, China and Russia to push for ceasefire as UN Security Council meets on Iran

Updated 22 June 2025
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Pakistan, China and Russia to push for ceasefire as UN Security Council meets on Iran

  • The three countries have circulated a draft resolution text and asked UNSC members to share comments by Monday
  • A resolution needs at least nine votes in favor and no vetoes by the US, France, Britain, Russia or China for it to pass

ISLAMABAD: Pakistan, China and Russia will present a joint resolution calling for an immediate and unconditional ceasefire in the Middle East, the Pakistani mission to the United Nations (UN) said on Sunday, ahead of a UN Security Council meeting to discuss US airstrikes on Iranian nuclear sites.

It was not immediately clear when it could be put to a vote. The three countries circulated the draft text, and asked members to share their comments by Monday evening. A resolution needs at least nine votes in favor and no vetoes by the United States, France, Britain, Russia or China to pass.

The US is likely to oppose the draft resolution, which condemns the attacks against “peaceful nuclear sites and facilities under the IAEA (International Atomic Energy Agency) safeguards in the Islamic Republic of Iran” and says that such attacks represent a threat to international peace and security, and to the entire safeguards regime of the IAEA, according to a draft seen by Arab News.

It calls for an immediate and unconditional ceasefire and a diplomatic solution to the nuclear issue to reach an agreement acceptable to all parties that “guarantees the exclusively peaceful nature of the Islamic Republic of Iran’s nuclear program in exchange for complete lifting of all multilateral and unilateral sanctions.”

“Pakistan, China and Russia jointly have drafted a resolution and it is hoped that other countries like Algeria may also become its approvers,” Pakistan’s UN mission said.

“So far, it has been shared with the members countries for comments, which is a procedure before tabling it in the UNSC.”

The member countries will comment on the draft resolution and then a final draft will be tabled in the Security Council.

The world awaited Iran’s response on Sunday after President Donald Trump said the US had “obliterated” Tehran’s key nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.

Iran requested the UN Security Council meeting, calling on the 15-member body “to address this blatant and unlawful act of aggression, to condemn it in the strongest possible terms.”

Israel’s UN Ambassador Danny Danon said in a statement on Sunday that the US and Israel “do not deserve any condemnation, but rather an expression of appreciation and gratitude for making the world a safer place.”

UN Secretary-General Guterres branded the US strikes on Iran as a “dangerous escalation in a region already on the edge – and a direct threat to international peace and security.”

“At this perilous hour, it is critical to avoid a spiral of chaos. There is no military solution. The only path forward is diplomacy. The only hope is peace,” Guterres said in a statement.


Pakistan urges OIC to transform its pronouncements on Kashmir into ‘tangible actions’

Updated 22 June 2025
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Pakistan urges OIC to transform its pronouncements on Kashmir into ‘tangible actions’

  • Kashmir has been divided between Pakistan and India since their independence from Britain in 1947
  • Both countries claim the territory in full and have fought two of their four wars over the disputed region

ISLAMABAD: Pakistan’s deputy prime minister has urged the Organization of Islamic Cooperation (OIC) to transform its pronouncements on the disputed Kashmir region into “tangible actions,” the Pakistani foreign office said on Sunday, following a meeting of the OIC Contact Group on Jammu and Kashmir.

The meeting took place on the sidelines of the 51st session of the OIC Council of Foreign Ministers in Istanbul, which came in the backdrop of Israeli military campaign against Iran and Pakistan’s recent military conflict with India.

While Pakistan’s brief standoff with India ended in a ceasefire last month, Israel’s attacks on Iran were followed by US airstrikes on three Iranian nuclear facilities, raising fears of further instability in an already volatile region.

Addressing envoys of OIC member states, Pakistan’s deputy premier and foreign minister, Ishaq Dar, described New Delhi’s actions in Indian-administered Kashmir as a replication of the Israeli designs in Palestine, referring to alleged human rights violations and attempts to change demographics of the disputed Himalayan territory.

“The OIC’s pronouncements on Jammu and Kashmir are a major source of support to the Kashmir cause,” Dar said. “However, in view of the mounting challenges to the Kashmiri struggle, the OIC should transform its pronouncements into tangible actions. The Organization should scale up its efforts for mitigation of the Kashmiri people’s sufferings and finding a just settlement of the Jammu and Kashmir dispute.”

Kashmir has been divided between Pakistan and India since their independence from Britain in 1947. Both countries have fought two of their four wars over the disputed region, which is ruled in part but claimed in its entirety by both India and Pakistan.

The latest conflict between the two neighbors was also triggered by a militant attack in Indian-administered Kashmir’s Pahalgam resort town, which killed 26 tourists on April 22. India blamed the attack on Pakistan, a charge Islamabad denies.

New Delhi has long accused Pakistan of fanning an insurgency on its side of Kashmir. Islamabad denies this and maintains that it only offers moral, political and diplomatic support to the Kashmiris.

Dar said Indian authorities exploited the Pahalgam attack to launch a massive crackdown in Kashmir.

“There are reports that over 2800 Kashmiris were arrested or questioned in the immediate aftermath of the attack,” he said. “The draconian Public Safety Act was slapped on at least 75 of them. The police carried out extensive searches at multiple residences of the locals. Around three dozen houses were razed to ground through the use of explosives.”

The Pakistani deputy PM said the disturbing developments in Indian-administered Kashmir have once again shown that a peaceful settlement of the Kashmir dispute is imperative for a lasting peace in South Asia.

“The region is home to over one-fifth of the world population. It could ill-afford the consequences of irresponsible Indian actions,” he said, urging the OIC and its members to use their influence to urge India to improve the human rights situation, release political prisoners and implement relevant United Nations Security Council resolutions in Indian-administered Kashmir.


Heavy rains, lightning strikes kill at least six people in Pakistan’s northwest

Updated 22 June 2025
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Heavy rains, lightning strikes kill at least six people in Pakistan’s northwest

  • A total of seven houses were damaged due to rains, strong winds and flash floods in Khyber Pakhtunkhwa province
  • The Pakistan Meteorological Department this week forecast pre-monsoon rains across various parts on June 20-23

ISLAMABAD: Heavy rains and lightning strikes killed at least six people and injured five others in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province this week, the KP Provincial Disaster Management Authority (PDMA) said on Sunday.

A total of seven houses were damaged due to rains, strong winds and flash floods that have lashed the province since June 20, according to a PDMA report. The accidents occurred in Mansehra, Buner, Lower Dir, Upper Dir, Malakand and Kohistan districts of the province.

“The deceased include three men, one woman and two children, while the injured include three men and two women,” it said.

The Pakistan Meteorological Department (PMD) this week forecast pre-monsoon rains in Kashmir, Gilgit-Baltistan and Punjab and KP from June 20 till June 23.

“The PDMA has already issued a letter to the district administrations to remain alert and take preventive measures,” it added.

Last month, rains and thunderstorms killed at least 26 people in KP and Punjab provinces, authorities said.

Pakistan has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, storms, cyclones and droughts in recent years. Scientists have blamed the events on human-driven climate change.

In 2022, devastating floods, blamed on human-driven climate change, killed more than 1,700 Pakistanis, affected another 33 million and caused the country over $30 billion in economic losses.


Pakistan says US strikes on Iran nuclear sites violate international law, IAEA statute

Updated 22 June 2025
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Pakistan says US strikes on Iran nuclear sites violate international law, IAEA statute

  • Experts warn the latest strikes could have ‘catastrophic’ economic and security implications for Pakistan
  • In phone call with Iran president, Pakistan premier offers Islamabad’s support to de-escalate the crisis

ISLAMABAD: The United States (US) airstrikes on Iranian nuclear facilities violate international law and the International Atomic Energy Agency (IAEA) statute, the Pakistan prime minister’s office said on Sunday, as experts warned of their economic and security implications for Islamabad.

The strikes, which targeted three Iranian nuclear sites at Fordow, Isfahan and Natanz early Sunday, came amid Israel’s ongoing campaign against Iran’s nuclear program, which Israeli officials claim is nearing weaponization, an allegation Iran denies, insisting its activities remain peaceful and under international safeguards.

While the amount of damage remained unclear, the strikes have fueled fears of a wider conflict, with Iranian Foreign Minister Abbas Araghchi saying the US had “crossed a very big red line,” the time for diplomacy was over and Iran had the right to defend itself. US President Donald Trump warned Tehran against retaliation.

Pakistan PM Shehbaz Sharif spoke with Iranian President Masoud Pezeshkian on Sunday afternoon and conveyed Pakistan’s condemnation of the US attacks, which targeted Iranian nuclear facilities that were under the safeguards of the IAEA, according to Sharif’s office.

“These attacks constituted a serious violation of international law and the IAEA Statute,” Sharif’s office said. “While noting Iran’s right to self-defense, as enshrined under Article 51 of the UN Charter, the prime minister stressed upon the need to immediately return to dialogue and diplomacy as the only viable path forward.”

Sharif called for urgent collective efforts to de-escalate the situation and reiterated Pakistan’s readiness to play a constructive role in this context, according to his office. President Pezeshkian conveyed his appreciation for Pakistan’s support to Iran.

Pakistan’s foreign office earlier said Islamabad condemned the strikes and was “gravely concerned” at the possible further escalation of tensions in the region.

“Any further escalation of tensions will have severely damaging implications for the region and beyond,” it said, adding that Iran had the right to defend itself under the United Nations (UN) Charter and urged all parties to respect international humanitarian law, protect civilian lives and “immediately bring the conflict to an end.”

“Recourse to dialogue, diplomacy, in line with the principles and purposes of the UN Charter remain the only viable pathway to resolve the crises in the region.”

Tensions flared on June 13 when Israel launched airstrikes against what it described as Iran’s military leadership and nuclear infrastructure. Iran, a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), has since retaliated with missile attacks on Israeli targets. The United States, Israel’s closest ally, has now directly joined the campaign.

Experts have warned that the latest US strikes could have “catastrophic” economic and security implications for Pakistan.

“The economic implications of a wider war would be catastrophic for Pakistan. First and foremost, if the Strait of Hormuz is closed, our major concern will be the import of oil, as most of our oil supplies come from the Middle East,” Shakeel Ramay, a Pakistani economist, told Arab News.

“This would severely impact our economy since a significant portion of our power grid is powered by imported oil and gas from the region. The disruption would affect electricity production and have far-reaching consequences for our transportation network as well. The government will need to manage rising prices in the short term.”

Lt. Gen. (retired) Naeem Lodhi, a former Pakistani defense secretary, said Pakistan had so far acted “wisely” by condemning the attacks on Iran and offering to mediate the crisis.

“At this point, Pakistan needs to remain alert and ensure that it does not get directly involved. It must not allow any country — on either side — to use its soil, airspace, or any other assets,” he told Arab News.

“Although staying completely uninvolved is difficult due to our geographic proximity, it is still the most desirable course of action.”

If the war expanded, Lodhi said, Pakistan would face “serious challenges.”

“Many Pakistanis believe that if Iran is defeated in this war, it could create long-term problems for Pakistan,” he said.

“A new regime in Iran might not be friendly toward Pakistan and could even become hostile, bringing yet another threat to our borders. That is a key concern Pakistan must keep in mind.”

The crisis also raises questions about how Islamabad will navigate its delicate balancing act between Iran, other Gulf partners, and the United States, which remains one of Pakistan’s largest trading partners and a critical source of military and economic assistance.

“Certain demands may be made that Pakistan will find hard to ignore. For instance, if Arab countries become involved — which is likely — there could be strong pressure on Pakistan to support them in some capacity, whether through logistics, access to airspace, or even bases,” Lodhi said.

“While it may be relatively easier to say no to the United States despite its influence, refusing multiple allied Arab countries will be much more difficult. Still, Pakistan’s current leadership, especially the military leadership, is well aware of these dangers and will likely try to keep the country out of the conflict.”


Cherry festival in northern Pakistan draws crowds amid growing exports to China

Updated 22 June 2025
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Cherry festival in northern Pakistan draws crowds amid growing exports to China

  • Gilgit-Baltistan, which produces 9,000 tons of cherries, exported over a quarter of the crop to China last year
  • Agricultural experts say the region’s cold climate is ideal for growing cherries, apricots and apples

SKARDU, Gilgit-Baltistan: As Pakistan begins to export cherries to neighboring China, a colorful one-day festival in Skardu this week drew hundreds of visitors, highlighting the potential of agri-tourism and cherry farming in the northern Gilgit-Baltistan (GB) region, officials and growers said.

Home to the Khunjerab Pass — the highest paved international border crossing in the world — GB is often described as Pakistan’s gateway to China.

The region’s cold climate is ideal for growing high-quality fruits such as cherries, apricots and apples.

“This is the 5th National Cherry Festival, and we are organizing Agri-Mela as part of the festival,” Zakir Hussain, deputy director at the GB agriculture department, told Arab News on Friday.

Visitors sample different verities of cherries displayed at a stall at the 5th National Cherry Festival in Skardu. Pakistan on June 20, 2025. (AN Photo)

 “The aim of this festival is to introduce cherry as a cash crop.”

He said the event, organized in collaboration with the State Bank of Pakistan, aimed to raise awareness about harvesting, marketing and the economic importance of cherries.

According to the GB agriculture department, the region produces 8,000 to 9,000 tons of cherries annually, with dried cherry marketing now also underway.

“Almost 3,000 tons of cherries had been exported to China in 2024,” Hussain said, adding that GB was the leading cherry-producing region in Pakistan.

Local farmers say the festival boosts their income and visibility.

A cherry farmer displays his produce at the 5th National Cherry Festival in Skardu. Pakistan on June 20, 2025. (AN Photo)

“We have been growing cherries for the last 12 to 13 years and we have 200 to 300 cherry trees in our orchard,” said Skinder Ali, a 40-year-old farmer. “Whenever the festival is held in Gilgit-Baltistan, we participate. And due to this event, we get access to the market at the national level.”

The festival also attracted tourists from other parts of the country.

“We especially came to Skardu to see the cherries, and we are from Islamabad,” Zohra Begum, a 52-year-old visitor, said. “We have been visiting [the stalls] for the last hour... The taste of cherries is very good ... So far we have purchased 10 kilograms. Let’s see how much we purchase later.”

“I am a traveler and biker from Lahore,” said Mohsin Abbas, another tourist. “We were in Shigar last night when we came to know about the festival. So we came here... We have tasted the cherries and they are very delicious.”

Ghulamullah Saqib, an agriculture expert and trainer, said the region’s climate is well suited for cherries, which require 800 to 1,000 chilling hours to bear fruit.

“There are 14 varieties of cherry that are found in Gilgit-Baltistan,” he added.