October 30, 2024: Accelerating the digitization of payments, the State Bank of Pakistan and K-Electric, the country’s sole private power utility, have made a significant advancement by signing agreements to initiate a Proof of Concept under Raast’s Payment Initiation Service Provider (PISP) model. This collaboration will assess the feasibility of incorporating K-Electric’s consumer and bill payment services into Raast, Pakistan’s first instant payment system. The successful integration will pave the way for other similar payment services to join the platform in Pakistan.
This strategic alignment aims to enable KE customers by offering easier bill payments via Raast allowing seamless, secure, and real-time digital transactions through any bank account in Pakistan.
Speaking on the occasion, Mr. Saleem Ullah, Deputy Governor, SBP highlighted the importance of integrating public and private entities via Raast, emphasizing that simplifying the lives of millions requires a collective approach. He noted that digitization of government payments and receipts is gaining momentum, unlocking efficient, secure, and transparent payment processes that will benefit citizens, businesses, and the economy. Collaborations with FinTechs are crucial, the Deputy Governor encouraged the banking industry to leverage FinTech competencies to provide digital payment services to all segments, including billers like KE. He pointed out that billers like KE are now directly approaching the bank to access Raast highlighting the growing demand for digital payment solutions. He further noted that KE’s inclusion as a PISP sets a new benchmark for other service providers joining Raast, making essential services more accessible and convenient for the public.
Mr. Moonis Alvi, CEO K-Electric, expressed his enthusiasm about the partnership, calling it a major milestone in KE’s digitization roadmap. “Our partnership with SBP aligns with KE’s vision of revolutionizing its customer experience and engagement by being accessible across digital platforms.” he added.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.
