SBP to launch Pakistan Express Clearing System

According to Mettis Global, the central bank has resolved to launch the Pakistan Express Clearing System (PECS), under which cheques will be cleared using captured images rather than physical instruments. The pilot stage starts on October 15, 2026, and full nationwide coverage is targeted for April 30, 2027. A circular to clearinghouse members says the aim is to bolster the country's digital payments setup and make cheque processing and settlement more effective.

A pilot will run at institutions selected by SBP with the clearinghouse from October 15 to November 15, 2026, followed by an extended phase covering all participants from November 16 to December 31, 2026. In practice, the presenting bank captures the cheque image and sends it to the clearinghouse, which forwards it to the paying bank.

Participating institutions must nominate a focal person and report progress, while keeping to set timelines, service standards and settlement duties. During the pilot, an extra PECS clearing cycle will run daily, with results submitted to SBP by 3:00pm. Financial institutions have also been told to run public awareness drives across print, online and social channels and to train staff on the truncation process. Institutions must also comply with applicable laws, including the Payment Systems and Electronic Fund Transfers Act, 2007 and the Negotiable Instruments Act, 1881.