Pakistan
Guide to Pakistan's financial system, payments, and banking.
Currency
Pakistani Rupee (PKR)
Regulatory Body
State Bank of Pakistan (SBP)
Overview
Overview
Pakistan is South Asia's second-largest economy with 230M people. Financial system developing with rapid digital adoption. Mobile wallet penetration highest globally after Kenya. Remittances critical to economy ($30B+ annually). Young population. Growing fintech sector.
Financial System
SBP regulates with modernization focus. Major banks: HBL, UBL, Meezan, Allied. Mobile wallets dominant: JazzCash, Easypaisa, UPaisa. Banking sector modern but growth constrained by regulatory environment. Remittances critical.
Business Environment
Business registration straightforward. Corporate tax 25-29% (moderate). VAT 17% standard. Accounting standards developing. Political instability risk. Manufacturing growing. IT sector competitive.
Banking System
Habib Bank Limited (HBL) - Largest bank
United Bank Limited (UBL) - Second largest
Meezan Bank - Islamic banking leader
Allied Bank - Growing bank
Faysal Bank - Islamic focus
Askari Bank - Smaller player
Payment Methods
JazzCash - Dominant mobile wallet
Easypaisa - Popular wallet
UPaisa - Growing wallet
Bank transfers (HBL, UBL)
Debit/credit cards
Cash (still significant)
Compliance & Regulations
SBP enforces AML/KYC. Inbound remittances unlimited and encouraged. Large transfers may require documentation. Corporate tax 25-29%, VAT 17%. Source of funds verification for large transfers. Remittance sector regulated but welcoming.
Frequently Asked Questions
How are business payments settled in Pakistan?
Through SBP-supervised rails - RAAST for real-time transfers and PRISM RTGS for high-value settlement to corporate accounts.
What are typical costs?
JazzCash/Easypaisa: free. Banks: ₨100-500. International: $2-6.
How fast is RAAST?
Real time. Funds reach the beneficiary account within minutes.
Can foreigners do business?
Yes, but political instability adds risk. Clear registration process.
What is the corporate tax rate?
25-29% depending on business type.
Are transfers taxed?
Inbound remittances not taxed. Provides strong remittance incentive.