Moaaz Manzoor

Pakistan’s large-value payment system recorded strong activity during the first quarter of FY26, with the Real-Time Gross Settlement (RTGS) system processing Rs351 trillion in transactions, reflecting continued growth in high-value financial flows across the economy, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that the RTGS system, which facilitates real-time settlement of high-value interbank and government transactions, handled 1.7 million transactions during the quarter. The rise in both transaction value and volume underscores the system’s critical role in supporting large-scale financial activity, including interbank transfers, government payments and settlement of financial market transactions.

According to the review, a major portion of RTGS activity was driven by government securities and interbank settlements. Transactions related to government securities alone accounted for Rs254 trillion, highlighting the system’s central role in supporting public sector financing and monetary operations. The elevated volumes also reflect continued activity in money markets and capital markets during the period.

The State Bank noted that the RTGS system plays a vital role in maintaining financial stability by enabling real-time, irrevocable settlement of high-value transactions. Its ability to process large volumes efficiently reduces settlement risk and enhances confidence among financial institutions participating in the system.

The report highlighted that RTGS’ strong performance during the quarter was supported by the successful implementation of system upgrades under the PRISM+ platform. These enhancements have improved system resilience, processing speed and overall reliability, ensuring uninterrupted settlement even during peak transaction periods.

According to the central bank, the modernization of the RTGS infrastructure has strengthened Pakistan’s payment ecosystem by aligning it with international best practices. The improved system architecture has enhanced capacity to handle growing transaction volumes while maintaining high levels of security and operational efficiency.

The review further noted that increased usage of RTGS reflects broader growth in economic and financial activity, particularly in government financing, interbank liquidity management and capital market operations. As economic activity expands, the demand for real-time, high-value settlement services is expected to rise further.

The State Bank emphasized that continued investment in payment system infrastructure remains a priority to support financial stability and economic development. The sustained growth in RTGS volumes, the report concluded, signals a maturing financial system capable of supporting increasingly complex and high-value financial transactions across the economy.

Credit: INP-WealthPk