By Qudsia Bano

Pakistan's remittance ecosystem could become faster and more efficient following Swift's launch of a blockchain-based payment infrastructure designed to support round-the-clock cross-border transactions, offering the potential to improve fund availability, liquidity management and confidence in formal banking channels.

The new infrastructure enables participating financial institutions to process eligible international payments continuously rather than waiting for conventional banking hours, weekends or public holidays. For Pakistan, where overseas remittances remain one of the country's largest sources of foreign exchange, the development could further strengthen formal remittance channels as domestic banks gradually adopt compatible technologies.

The announcement comes at a time of record remittance inflows. According to the State Bank of Pakistan (SBP), workers' remittances reached US$3.54 billion in April 2026 before rising to an all-time monthly high of US$4.25 billion in May. The sustained increase has provided important support to Pakistan's external account during the current fiscal year.

Experts believe that, alongside record remittance inflows and continued investment in financial technology, the emergence of 24-hour international payment capabilities could further strengthen Pakistan's ability to channel overseas remittances through secure and regulated banking systems. They say widespread adoption will ultimately depend on commercial banks' readiness and regulatory support, but the technology has the potential to become an important component of Pakistan's evolving digital financial architecture.

Speaking with Wealth Pakistan, Umair Siddiqui, Operations Manager at Meezan Bank, said the introduction of a continuous payment ledger represents a significant operational improvement rather than merely a technological upgrade.

He explained that banks currently schedule settlements around correspondent banking hours, which can delay transactions initiated during weekends or public holidays. A continuous settlement system, he said, would enable faster processing while improving liquidity management and cash-flow forecasting for financial institutions.

Siddiqui added that Pakistani banks have invested heavily in digital payment infrastructure in recent years, making future integration with global payment innovations more achievable.

According to him, shorter settlement cycles could reduce operational bottlenecks, simplify reconciliation processes and provide customers with greater transparency regarding the status of international transfers.

Echoing these views, Farah Nadeem, Clearing Supervisor at Bank Alfalah, said continuously available formal payment systems could also help reduce reliance on informal money transfer channels such as Hawala and Hundi.

She noted that overseas Pakistanis often prioritise speed and reliability when sending money home, particularly during emergencies, religious holidays and family events, occasions when conventional banking schedules can cause delays.

"If regulated banking channels remain available around the clock with reliable transaction tracking, they will become even more attractive to overseas Pakistanis," she said.

Nadeem added that improved payment visibility and quicker settlement could strengthen public confidence in formal financial institutions while supporting compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

Swift recently announced that 17 banks across six continents are preparing to pilot live transactions using the new blockchain-based payment ledger. The platform is designed to support tokenised deposits and continuous payment processing while giving regulated financial institutions greater flexibility in liquidity management and creating a foundation for future innovations in programmable payments and digital assets.

Pakistan has also been modernising its own payments ecosystem through digital banking reforms, including the expansion of instant payment services and improvements in cross-border remittance infrastructure.

Credit: INP-WealthPk