The State Bank of Pakistan (SBP) will launch the Pakistan Express Clearing System (PECS) from October 15 to speed up cheque clearing and settlement through electronic processing.
The new system will use cheque truncation, under which cheques will be cleared using captured images instead of physical instruments. All subsequent clearing steps will be carried out using the electronic image and related clearing data.
PECS will initially be introduced on a pilot basis with selected clearinghouse participants from October 15 to November 15, 2026. The system will then be expanded to the remaining clearinghouse members from November 16 to December 31.
Under the new system, the presenting or collecting bank will capture an image of a cheque or other instrument and transmit it to the clearinghouse, NIFT, which will send it to the paying or drawing bank for processing.
During the pilot phase, an additional PECS clearing cycle will be operated daily from October 15 to December 31. The clearinghouse will submit the additional cycle to SBP by 3 p.m.
SBP has directed NIFT member financial institutions to train relevant staff, comply with applicable laws and regulations, and create awareness about the new system.
The clearinghouse and participating institutions will review the pilot results and address any issues before expanding the system. Financial institutions will also be required to progressively extend cheque truncation capabilities across their branch networks.
The complete rollout of PECS is planned by April 30, 2027. All NIFT members will be required to develop the necessary infrastructure and achieve nationwide implementation by the deadline.
Relevant financial institutions will nominate focal persons for PECS implementation and report progress to SBP. They will also be required to comply with prescribed clearing timelines, customer service standards and settlement obligations throughout the implementation process.
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