Matrix Report
Pakistan government has recently announced an instant digital payment system called “Raast” (direct way). The purpose of launching this app is an effort to boost financial inclusion and government revenue since only a fraction of economic transactions occur on the books.
The State Bank of Pakistan said that “Raast” will be rolled out gradually in three phases and will be completed by early 2022.
The Bill & Melinda Gates Foundation provided help to the state Bank of Pakistan in developing this app with support from the World Bank, Britain and the United Nations. This was a multi-year project and one of the goals is to boost involvement of women in the formal economy
Earlier, several private-sector digital cash transfer systems have been operating in Pakistan that do not require a bank account, such as Jazzcash operated by telecommunications company Jazz and Easypaisa operated by telecommunications company Telenor Pakistan. But Raast would be the first to link government entities and financial institutions.
Addressing the launching ceremony, prime Minister Imran Khan said, “Raast is a big step towards realising Pakistan’s potential; it will help the country move from cash economy to digital economy and help the government to collect more taxes when formal transaction channels are utilised more,”
Also, Bill Gates, in a statement read out at the announcement on Monday said, “I hope that in years to come we will look back and see this new digital public good as an important contribution to our shared goal of giving all people the tools they need to lift themselves out of poverty,”
Businesses, entrepreneurs, individuals, fintechs, and government entities will be able to send and receive near real-time payments through the internet, mobile phones and agents. Government payments, including salaries and pensions, will also be made through Raast, as well as payments for nationwide financial support programmes, such as the Benazir Income Support Programme, and the Ehsaas Emergency Cash programme.
Prime Minister Imran Khan, whose government has taken steps to automate collection of taxes on transactions and tightened rules on banking, said shifting away from a cash-based economy and tackling corruption were the chief motivations behind Raast.
“Pakistan collects about the least amount of tax in the world,” Khan said. “We cannot build infrastructure, we cannot work on human development, or educate children, or improve hospitals.”
