Qudsia Bano

Pakistan’s payment system infrastructure recorded significant operational strengthening during the first quarter of FY26, with upgrades in processing capacity, system resilience and platform integration enhancing the ability of national payment rails to handle rising transaction volumes, according to the State Bank of Pakistan’s Payment Systems Review.

The central bank reported that continuous enhancements were carried out across core payment platforms, including the Real-Time Gross Settlement (RTGS) system and retail payment infrastructures, to ensure high availability, reliability and processing efficiency. These upgrades enabled the system to manage large transaction volumes without service disruption, even as overall payment activity increased sharply during the quarter.

According to the review, the payment infrastructure processed transactions amounting to Rs590.263 trillion across various channels during the period, reflecting the system’s capacity to support both high-volume retail payments and large-value interbank settlements. The ability to handle this scale of activity highlights improvements in system architecture, processing speed and operational resilience.

The State Bank noted that enhancements to system redundancy, backup mechanisms and real-time monitoring frameworks have strengthened operational continuity. These measures are aimed at minimising downtime, improving fault tolerance and ensuring uninterrupted settlement of critical financial transactions.

The report further highlighted improvements in interoperability among payment systems, enabling smoother integration between banks, payment service providers and clearing platforms. This has enhanced transaction routing efficiency and reduced processing delays across interconnected payment networks.

According to the central bank, continued investments in infrastructure modernisation have also improved system scalability, allowing payment platforms to accommodate rising transaction volumes without compromising performance or security. Enhanced cybersecurity controls and risk management frameworks have been implemented to safeguard against operational and cyber threats.

The review emphasised that strengthening core payment infrastructure remains central to maintaining confidence in the financial system. By ensuring high availability, resilience and scalability, the payment infrastructure supports uninterrupted economic activity and underpins the stability of the broader financial ecosystem.

The State Bank concluded that ongoing infrastructure upgrades will remain a strategic priority as digital transaction volumes continue to grow. The focus on system robustness and operational efficiency is expected to play a critical role in sustaining the long-term development of Pakistan’s digital payment ecosystem.

Credit: INP-WealthPk