PRISM+ Launches in Pakistan: SBP’s Major Leap Toward Real-Time Digital Settlements

June 13, 2025 Fiza Butt

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A Game-Changer for Pakistan’s Financial Ecosystem

In a landmark move aligned with its Vision 2028, the State Bank of Pakistan (SBP) is set to launch PRISM+ (Pakistan Real-Time Interbank Settlement Mechanism Plus) on June 16, 2025. This next-generation upgrade of Pakistan’s digital financial infrastructure aims to redefine the future of real-time gross settlement (RTGS) systems by enhancing speed, security, and interoperability among banks and financial institutions.

With its foundation based on ISO 20022, a globally recognized financial messaging standard, PRISM+ will automate workflows, support structured data, and integrate new digital payment modules. This initiative places Pakistan alongside other nations transitioning to data-rich and automated central banking operations.

What is PRISM+? An Evolution of Real-Time Financial Infrastructure

The original PRISM system handled high-value RTGS transactions among Pakistan’s banking entities. PRISM+, however, introduces a comprehensive digital upgrade:

Key Features of PRISM+

ISO 20022 Messaging Standard
This facilitates richer data exchange and ensures interoperability with global financial networks, such as SWIFT, paving the way for cross-border digital integration.
Real-Time Monitoring and Dashboards
Banks can now utilize customizable dashboards, generate alerts, and download transaction reports instantly, enhancing operational oversight.
Advanced Liquidity Management Tools
With the ability to transfer funds between Current and Transitory Accounts, banks can optimize intra-day liquidity usage.
Central Securities Depository (CSD) Integration
PRISM+ facilitates government securities auctions, collateral management, and secondary market trading, adding depth to Pakistan’s debt markets.
API and STP (Straight-Through Processing)
Financial institutions can automate transactions via RESTful APIs or file-based adapters, ensuring frictionless digital processing.
Dual Messaging Support (MT & MX)
Ensuring smooth migration, PRISM+ supports both the legacy MT format and ISO-compliant MX messages until September 30, 2025.

How PRISM+ Will Function in Practice

A major innovation under PRISM+ is the use of Transitory Accounts. Each business day, 80% of a bank’s Current Account balance at SBP BSC, Karachi, will be transferred to a Transitory Account automatically.

These accounts are designed to:

Enhance daily liquidity management.
Allocate reserves for services like Raast, NIFT, and 1Link.
Enable real-time transaction approvals and monitoring.

Banks will be responsible for maintaining adequate balances to avoid systemic risks, and are expected to align treasury operations accordingly.

Readiness Roadmap for Banks and Financial Institutions

To ensure seamless adoption, SBP has mandated all financial institutions to:

Complete PRISM+ integration testing and operational validation.
Revise internal settlement frameworks and risk protocols.
Enable Raast Over-the-Counter (OTC) connectivity across all branches.
Safely archive historical transaction records for compliance and reference.

The system’s modular design and API-first architecture are geared to support future fintech innovations, including open banking, digital KYC, and AI-driven finance.

Digital Payments in Pakistan: At a Crossroads

While PRISM+ strengthens digital infrastructure, its launch coincides with new fiscal measures that could challenge digital adoption:

5% withholding tax on payments to foreign service providers, including platforms like Google Ads, AWS, and Netflix.
Tiered taxation on local e-commerce and digital wallet transactions.

These policies have prompted concern among digital business stakeholders, who argue that taxation without facilitation may deter both consumers and entrepreneurs from transitioning to digital ecosystems.

“Digital taxation should support innovation, not stifle it,” says a Karachi-based fintech consultant. “We need policy alignment to reap the benefits of PRISM+.”

Why PRISM+ Matters for Pakistan’s Economic Future

PRISM+ is not just a tech upgrade—it’s a strategic move toward financial inclusion, digital transparency, and cross-sector efficiency.

It lays the foundation for:

Faster interbank settlements, reducing transaction bottlenecks.
Greater resilience in financial operations, especially during liquidity stress.
Broader access to capital markets, especially for smaller financial institutions.

However, its success depends on holistic policy-making—where tax incentives, education, and digital infrastructure work in tandem.

Final Thoughts

The launch of PRISM+ marks a pivotal shift in Pakistan’s banking sector. While the system promises innovation, efficiency, and integration, its real impact will be measured by how well institutions, regulators, and policymakers collaborate to ensure its sustainable and inclusive growth.