In a major move that could reshape Pakistan’s digital finance ecosystem, the State Bank of Pakistan (SBP) has granted in-principle approval (IPA) to Barq, a Saudi-based fintech company, to operate as an Electronic Money Institution (EMI) in Pakistan.
This marks an important milestone for Pakistan’s fintech landscape, signaling not only greater foreign investment but also renewed regulatory confidence in the growing digital payments sector.
What the Approval Means
The in-principle approval allows Barq to begin setting up its operations, conduct pilot testing, and work toward fulfilling all compliance and technical requirements before the SBP grants it a full commercial EMI license.
During this initial phase, Barq will:
- Develop and test its e-wallet infrastructure.
- Integrate payment gateways, merchant networks, and user verification systems.
- Conduct pilot transactions to ensure smooth and secure digital operations.
Once approved for full EMI status, Barq will be able to launch its digital wallet, enabling users to store funds, make payments, transfer money, and pay bills — all through a single, unified platform.
Barq’s Entry and Local Strategy
Barq’s entry into Pakistan comes through the acquisition of MyTM, a homegrown fintech company founded by Dr. Zain Farooq. Dr. Farooq is now leading Barq Pakistan as its Managing Director, overseeing the company’s launch and local operations.
With this move, Barq aims to blend its Saudi fintech expertise with Pakistan’s emerging digital economy — focusing on seamless mobile payments, advanced security standards, and strong merchant partnerships.
Barq has already made a name for itself in Saudi Arabia, where it serves over 7 million users and has become one of the top players in the digital payments market. The company is now looking to replicate its success in Pakistan by targeting both retail consumers and small to medium-sized enterprises (SMEs) that are seeking secure, cashless payment solutions.
Why This Matters
The SBP’s decision to greenlight Barq underscores three major trends shaping Pakistan’s economy:
- Digital Transformation — Pakistan’s fintech sector is growing rapidly, with millions of new users joining digital wallets and mobile banking each year.
- Foreign Fintech Investment — Barq’s approval marks one of the few times a foreign fintech firm has been allowed to establish EMI operations in Pakistan.
- Regulatory Maturity — SBP’s EMI framework continues to evolve, balancing innovation with strict compliance and data protection measures.
Opportunities and Competitive Landscape
Barq enters a highly competitive market dominated by players like Easypaisa, JazzCash, Nayapay, and Sadapay. However, it plans to differentiate itself through:
- Advanced cross-border features connecting Saudi and Pakistani users.
- Shariah-compliant financial products tailored for Islamic banking customers.
- Merchant-first solutions for small retailers, fuel stations, and logistics networks.
- AI-driven fraud detection and compliance systems ensuring safety and speed.
With Pakistan’s population exceeding 240 million and digital adoption accelerating, Barq’s arrival could further drive financial inclusion and accelerate the shift toward a cashless economy.
Risks and Challenges Ahead
While Barq’s launch holds promise, it faces several hurdles:
- Regulatory Compliance: Meeting SBP’s stringent licensing, cybersecurity, and data protection standards will be critical.
- User Trust: As a foreign entrant, Barq will need to earn consumer confidence through reliability and strong local branding.
- Market Saturation: Competing with well-established local players means Barq must bring unique incentives or better user experience.
- Infrastructure and Reach: Ensuring consistent service quality in rural and low-connectivity areas remains a challenge for all fintechs.
What’s Next
Barq will now begin its pilot phase, after which SBP will evaluate its performance before granting the full EMI license. Once cleared, Barq plans to officially launch its app and wallet services across Pakistan, potentially within the next fiscal year.
The company is also expected to partner with local banks, telecom operators, and retail chains to expand its network rapidly after launch.
