PM Imran Khan launches 'Raast' payment system

ISLAMABAD: Prime Minister Imran Khan on Monday, launching the 'Raast' payment system, said that the digital Pakistan initiative would help the country move away from the cash economy.

The premier, speaking at the ceremony for the, said that the 'Raast' payment system would help eradicate poverty in Pakistan.

"Cash economy is an obstacle for the people," he said as he stressed that the digitised payments would help Pakistan on its road to prosperity.

Speaking further about the country's economic system, he said that Pakistan's tax collection was extremely low and that out of the 220 million population, only two million paid tax.

"Only 3,000 Pakistanis pay 70% tax," he said, adding that the low tax collection was a major obstacle in the country's development.

Praising the central bank, the prime minister said that a "record" increase was witnessed in remittances. "Account surplus has eased pressure on the rupee."

The launch was attended by State Bank of Pakistan Governor Dr Reza Baqir as well.

The Raast is Pakistan’s first instant payment system that will enable end-to-end digital payments among individuals, businesses, and government entities instantaneously, according to SBP's website.

The 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 banks and fintech.