The Pakistani government’s endeavor to attract investments into Shariah compliant sovereign instruments through its newly introduced digital platform is also creating new opportunities for technology providers.
Codebase Technologies has unveiled its Digibanc Digital Roshan solution, designed specifically to facilitate Islamic and conventional banks in their mandate to onboard the Pakistani diaspora onto the government’s Roshan Digital Account initiative. The Roshan Digital Account, facilitated by the State Bank of Pakistan, enables citizens abroad to invest in Shariah compliant sovereign investment papers remotely, a nation’s first, as part of the regulator’s efforts to attract Islamic investments from non-resident Pakistanis (NRPs) into the local economy amid precarious market confidence.
“Factors such as disruptive internet and smartphone penetration in the country, consumer preferences for social media and growing e-commerce are driving digital payments and processes in Pakistan. The government of Pakistan is also putting in place strong regulatory frameworks and laws for digital financial services, pushing the growth of fintech-led initiatives,” explained Raheel Iqbal, the managing partner and global product head at Codebase Technologies.
Through the new service, NRPs will be able to undertake banking services including transferring funds and making payments as well as investment activities, including investing into Naya Pakistan Certificates, which are sovereign investment papers reserved for the qualified diaspora. the government last month introduced a Shariah compliant version of the Naya Pakistan Certificates. Eight banks including Bank Alfalah, Faysal Bank, Habib Bank, Meezan Bank and Standard Chartered have been selected to provide the Roshan Digital Account.
A most welcome initiative to bolster Islamic investments, it has also opened the doors for tech companies to provide the necessary infrastructure. Codebase Technologies’s Digibanc Digital Roshan, which can be integrated within 45 days, allows banks to manage their Know-Your-Customer processes remotely, facilitate digital customer onboarding, automate regulatory reporting as well as perform payments and transfers.