SBP to Introduce Pakistan Express Clearing System
ISLAMABAD: The State Bank of Pakistan (SBP) is set to introduce the Pakistan Express Clearing System (PECS), replacing the traditional practice of physically transferring cheques between banks with an electronic image-based clearing mechanism.
According to the central bank, the pilot phase of PECS will begin on October 15, 2026, while the new clearing system is targeted to become fully operational across the country by April 30, 2027.
Under the new system, when a customer deposits a cheque at a bank, the bank will scan the cheque and send its digital image along with the relevant data to the National Institutional Facilitation Technologies (NIFT), the country’s clearing house.
NIFT will then electronically transmit the cheque image to the concerned paying bank. The receiving bank will examine the scanned image and accompanying data before deciding whether to honour or reject the cheque.
The original paper cheque will initially remain in the custody of the bank where it was deposited. However, if the paying bank has concerns about the authenticity of the cheque or the quality of its scanned image, it can request the original document through the “Defer for Physical” option.
The SBP said cheque images would be captured through designated scanners at branches equipped with scanning facilities. At branches without such facilities, NIFT will collect and scan the cheques before providing their electronic images to the relevant banks.
The initial pilot phase will run from October 15 to November 15, 2026, and will be limited to selected banks and institutions. From November 16 to December 31, the system will gradually be expanded to other participating institutions and their branches.
According to the SBP, the PECS initiative is aimed at making cheque clearing and funds settlement faster, safer and more efficient. The new system is also expected to support Pakistan’s broader transition towards digital payments.
