Why Your Cheque Will Clear Faster Starting October 15

Starting October 15, the State Bank of Pakistan (SBP) will introduce the Pakistan Express Clearing System (PECS) to expedite cheque clearing and settlement through electronic processing. This new system employs cheque truncation, wherein cheques are cleared using digital images rather than physical instruments. Subsequent clearing steps will be conducted using the electronic image and associated clearing data.

PECS will be initially launched on a pilot basis with a select group of clearinghouse participants from October 15 to November 15, 2026. Following the pilot phase, the system will be expanded to the remaining clearinghouse members from November 16 to December 31. During the pilot phase, an extra PECS clearing cycle will be conducted daily from October 15 to December 31.

By 3 p.m. on the final day of the daily cycle, the clearinghouse will submit the additional PECS clearing cycle to the State Bank of Pakistan (SBP). The SBP has instructed NIFT (National Interbank Fund Transfer) member financial institutions to train their staff, adhere to relevant laws and regulations, and promote awareness about the new system. The clearinghouse and participating institutions will assess the pilot results and resolve any issues prior to the system's broader expansion.

Financial institutions will progressively extend cheque truncation capabilities across their branch networks. The full implementation of PECS is scheduled by April 30, 2027. All NIFT members are obligated to develop the necessary infrastructure and achieve nationwide implementation by this deadline. Relevant financial institutions must identify focal persons for PECS implementation and report progress to the SBP.

They will also need to comply with prescribed clearing timelines, customer service standards, and settlement obligations throughout the implementation process.