The State Bank of Pakistan (SBP) has started printing Raast QR codes in public utility companies. The Ministry of Finance has asked for an update on this.
The Ministry made it clear in a letter to the administrative ministries of regulatory bodies and their chairpersons that this initiative is in line with the Prime Minister’s goal of speeding up the digitalization of payments across the country. All relevant ministries, departments, and regulatory bodies have been instructed to begin the process of enabling Raast QR codes on all utility bills under their jurisdiction as part of the broader push to improve operational efficiency, increase transparency, and simplify payments.
Raast QR Codes to Appear on Utility Bills as Pakistan Pushes Digital Payments
The Person-to-Government (P2G) and Person-to-Business (P2B) transactions, Karandaaz supports the Raast Instant Payment System, which was developed, operated, and maintained by the SBP.
The dynamic QR code functionality, which enables customers to conveniently make payments by scanning a QR code through the mobile application of their bank, is a key component of the system.
This initiative is expected to: (i) reduce cash handling and the associated reconciliation burden for utility service providers; (ii) enhance transparency and traceability of government receipts; and (iii) improve convenience for payers through interoperable and instant digital payment options.
In this regard, all utility service providers operating under the Cabinet Division, Power Division, Petroleum Division, Telecommunication and Telecom Division and Interior Division (including but not limited to electricity, gas and telecom) have been advised to: (i) coordinate with their respective banks to integrate dynamic Raast QR code generation within their billing systems; (ii) ensure that Raast QR codes are printed or digitally displayed on all utility bills issued to consumers; and (iii) share implementation timelines and periodic progress updates with the Ministry of Finance and the State Bank of Pakistan’s Digital Innovation& Settlement Department (DISD), which is the custodian of Raast.
The Raast teams at the SBP and Karandaaz will jointly support this initiative and are available to provide technical advisory to all utility companies and ministries. Karandaaz, in collaboration with SBP, will organise a webinar to address any queries that relevant departments may have regarding integration with financial institutions for receiving payments through Raast’s dynamic QR.
The Finance Ministry’s Concept Note states that the current method for paying utility bills in Pakistan is based on a reference number. This reference number is used by customers to manually complete payments and retrieve their due amounts via banking apps or over-the-counter agents. Even though this model works, it doesn’t work well, is hard to use, and causes operational problems for both billers and customers.
The Raast was created to modernize this procedure and align it with the cashless agenda of Pakistan’s government.
- The Instant Payment System provides an advanced solution. The Ministry of Finance and the SBP are working together to lead this project.
- The Raast was created to modernize this procedure and align it with the cashless agenda of Pakistan’s government.
- Instant Payment System offers an advanced solution using Dynamic QR codes. The Ministry of Finance and the SBP are working together to lead this project.
Utility companies operate internal billing servers that generate consumer bills using a unique reference number, calculating two payable amounts (before and after the due date). For the convenience of the customer, bills are sent out in person and made available through digital banking channels.
The reference number, due amounts, and payment details can be retrieved and completed by customers through their bank’s mobile app or online banking.
Real-time integration with banks or aggregators marks the bill as paid and reconciles the transaction.
Two functionalities under Raast are particularly relevant:
Raast Person-to-Merchant (P2M) with Dynamic QR: Bill amount and recipient information are embedded in a QR code. Payment is processed and reconciled immediately upon scanning, so there is no need for manual input.
Raast Request to Pay (RTP) enables the utility company to initiate real-time payments. While Dynamic QR is more appropriate for physical or print-based bills, it is useful in other contexts.
The proposed integration for Utility Bill Payments via Dynamic QR are as follows: (i) at bill generation, utility companies will also generate a Raast Dynamic QR, embedding consumer-specific amount and company IBAN; (ii) this QR code will be printed on the physical bill or displayed on the digital version; (iii) customers can scan this QR using any Raast-enabled banking app, confirm payment, and instantly complete the transaction; and (iv) payment will be debited from the customer’s account and credited to the utility provider’s account, with real-time reconciliation. It is possible to align the QR’s expiration date with the due date of the bill (custom expiry support may be required from participating banks and Raast).
Enhancing transparency, traceability, and a digital audit trail for providers of utilities and government services, it will streamline reconciliation, reduce cash handling, and increase operational efficiency.
It has been requested of ministries and regulatory bodies to direct all utility service providers under their jurisdiction to begin working with their banking partners to integrate Dynamic QR. Technical readiness may affect implementation times, but this change is a key enabler of Pakistan’s cashless strategy.
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