KARACHI: As the country surges ahead with a financial technology (FinTech) revolution, Pakistan’s central bank said on Monday that it has launched laws for Electronic Money Institutions (EMIs) as a step toward issuing digital currency by 2025.
The regulations – which have been designed with the help of the World Bank — will also seek to cover other requirements such as outsourcing activities, anti-money laundering and counter-terror financing measures, consumer protection, complaint handling mechanism, oversight and regulatory reporting.
EMIs are non-bank entities that will be licensed by the State Bank of Pakistan (SBP) to issue e-Money for the purpose of digital payments.
On Monday, Finance Minister Asad Umar stressed on the need to safeguard financial institutions as “cybersecurity was a growing threat” and termed the launch of the electronic money institutions as a game changer in promoting e-Commerce and a digital economy in the country.
“This new category of institutions will complement the efforts of the government in creating an enabling environment to empower stakeholders in trade and commerce. This will help businesses in improving their productivity and contribute toward positioning the nation for global competition,” he said.
Officials from the SBP concurred. “These landmark regulations are a testament of the SBP’s commitment toward openness, adoption of technology and digitization of our financial system,” Jameel Ahmad, Deputy Governor of SBP, said, adding that the SBP is transforming itself into a modern, digital and technology-oriented bank.
He said that the SBP is working on issuing digital currency by 2025, with the aim to promote financial inclusion and reduce corruption, and inefficiency.
“Our currency will remain the same, but as opposed to existing online payment services — where there is the backing of any financial institution — there will be not [be any] financial institution which we are going to bring in,” Abid Qamar, spokesman of the SBP said dispelling the impression that the central bank was going to issue a cryptocurrency.
Financial experts lauded the initiative as a “landmark in FinTech space”, terming it as the most progressive measure taken by the SBP in years.
“The launch of e-Money regulations…is a key landmark in our FinTech space. This way, Fintechs have been empowered to open and manage accounts themselves. This day is going to mark the inflection point for digital payments in Pakistan. We need this sort of speed and regulatory environment to set the ground for our FinTechs to flourish,” Khurram Schehzad, a senior financial analyst and CEO of Alpha Beta Core — a financial advisory firm, said.
Meanwhile, experts said that the initiative will place Pakistan among the few nations in the world who have adopted e-Money mechanisms. “This initiative is capital intensive and would help Pakistan achieve financial inclusion, especially in the rural sector of the country,” S. M. Arif, a financial and banking technologist, told Arab News.
He added that it would also help small and medium enterprises, the farming community, and rural dwellers gain access to financial instruments. “By enabling this regulations authorities have enabled wider base of population whether Urban or Rural, to have access to finance through these new digital mode of payments from verity of players. This will require proper and frequent education of masses from issuers to make good use of such facilities and safety of these instruments” he said, before quickly adding that “the business model must be made keeping in view the local market requirements and security threats as copy pasting a foreign model may backfire”.
Pakistan to tap into digital currency potential by 2025
Pakistan to tap into digital currency potential by 2025
- Move to address cybersecurity threats faced by institutions, FM Umar says
- Launch of e-Money regulations a key landmark in FinTech space, analysts add
Karachi gears up for premier defense expo next week amid heightened security measures
- Launched in 2000, IDEAS has become a key biennial event for the international defense industry
- The event will host over 550 exhibitors, including 340 global defense companies, from 55 countries
KARACHI: A senior government official in Pakistan’s southern Sindh province said on Sunday extraordinary security measures have been implemented for the country’s premier defense exhibition, which is scheduled to commence in Karachi next week.
The International Defense Exhibition and Seminar (IDEAS), held biennially since its inception under General (r) Pervez Musharraf’s administration in 2000, has grown into a key event for the defense sector.
This year’s exhibition, running from Tuesday to Friday, will host over 550 exhibitors, including 340 international defense companies, alongside more than 350 senior civil and military officials from 55 countries.
Sindh’s Home Minister, Zia-ul-Hassan Lanjar, told Arab News that police, Rangers and other law enforcement agencies are working in coordination to enforce heightened security measures in connection with the event.
“The police, Rangers, and other law enforcement agencies are united and alert on one platform to implement extraordinary security measures,” he said.
Karachi has faced significant security challenges, including a suicide bombing near Jinnah International Airport last month that killed two Chinese engineers and injured several others. The city also grapples with high street crime rates, with over 90,000 incidents reported in 2023, causing considerable hardship for residents.
Additionally, Karachi’s traffic conditions are notoriously poor, especially during rush hours, and are exacerbated by rain or high-profile events, leading to severe congestion and delays.
The provincial minister added that Karachi’s traffic police would ensure smooth movement for both domestic and international visitors by publicizing alternative routes and addressing traffic-related concerns.
To bolster security, local authorities have already fortified the Expo Center, the venue for the exhibition, with multiple layers of containers.
A day earlier, Brig. Ali Adil, Director of Coordination for IDEAS 2024, outlined the event’s diverse activities during a news conference, which include live demonstrations of cutting-edge defense technology, an international seminar and the IDEAS Tri-Services Karachi Show.
The event will also offer opportunities for networking through business-to-business and business-to-government engagements.
“IDEAS 2024 will bring together representatives of defense industries from around the world to showcase their latest technological innovations, while Pakistan’s defense sector, including both public and private companies, will present products of international standards,” Brig. Adil said.
This year’s event will feature a new “Startups Pavilion” designed to offer international exposure to young Pakistani entrepreneurs, who will display innovative projects and technologies, he said.
Commodore Aitazaz Khalid, Director of Media for IDEAS, confirmed that Prime Minister Shehbaz Sharif will inaugurate the exhibition on Tuesday.
An international seminar on “Pakistan Defense Production Potential – Challenges, Opportunities, and Way Forward” will be held on the third day of the event, with presentations from leading national and international experts.
General Sahir Shamshad Mirza, Chairman of the Joint Chiefs of Staff Committee, will be the chief guest for the seminar.
For the visiting dignitaries and Karachi residents, the Tri-Services Karachi Show will be held at Nishan-e-Pakistan, located on the city’s seafront.
Deputy Inspector General of Traffic Police Iqbal Dara also briefed the media on the traffic management plan and alternative routes to ensure smooth access for attendees and ease congestion during peak hours.
He said IDEAS 2024 would set new records, surpassing previous milestones in terms of the exhibition space, number of exhibitors and international participants.
Pakistan to organize single-country trade exhibition in Jeddah in February — official
- Around 100 Pakistani companies to participate in three-day exhibition from Feb. 5-7, says official
- Companies offering agro products, engineering, textile, garments and services invited to take part in exhibition
ISLAMABAD: Pakistan will organize a single-country trade exhibition in Jeddah from Feb. 5-7 next year, an official of the Trade Development Authority of Pakistan (TDAP) said on Sunday, in which products from around 100 companies will be showcased as Islamabad eyes the Saudi market to boost its exports.
Islamabad and Riyadh have been working in recent months to increase bilateral trade and investment, and the Kingdom this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.
Pakistani and Saudi businesses had signed 27 agreements and memorandums of understanding (MoUs) worth $2.2 billion in October. During Prime Minister Shehbaz Sharif’s visit to the Kingdom last month, the two countries agreed to enhance that figure to $2.8 billion.
“Pakistan will organize a single-country exhibition from Feb. 5-7, 2025, in Jeddah, Saudi Arabia, with the aim of increasing exports to the Kingdom,” Faisal Awan, TDAP’s deputy manager, told Arab News.
The TDAP will organize the exhibition, which Awan said would feature 100 Pakistani companies so they can “showcase their products directly to Saudi buyers in their own country.”
The official said TDAP has already published advertisements inviting Pakistani companies to showcase their products, setting Nov. 25 as the deadline to apply.
“We have invited companies from all sectors including engineering, agro products, textile and garments and services,” Awan added.
TDAP has also invited manufacturers from various sectors such as engineering, home appliances, machinery, pharmaceuticals, surgical instruments, cables and agro products such as fruits, vegetables, rice, meat, seafood, spices and processed foods, according to the advertisement seen by Arab News.
The invitation also extends to the textile and garments sector that offers knitwear, ready-made garments, home textiles, yarns, linen and fabrics, as well as the services sector which covers telecom, computer and information services.
“So far, we have received an excellent response with over 50 applications submitted in just over a week,” Awan said.
The TDAP is providing a subsidy of around 80 percent on the rates for stalls at the exhibition, Awan shared. He said the authority is charging only Rs 200,000 ($720) for each stall while the actual cost is around Rs 1.2 million ($4,319).
“Other arrangements such as visa, air tickets and accommodation must be handled by the company itself,” he said.
Awan said that while every market has its dynamics, Pakistan has a lot of expectations from the Saudi market due to the increasing business collaborations between the two countries in recent months.
“Since we have had a lot of delegations coming and going from Saudi Arabia in recent months, our expectations are very high,” Awan said. “And we aim to secure orders in the millions of dollars.”
The TDAP official said leads generated during the exhibition would be expected to materialize in the next five to six months.
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.
Islamabad has eyed increasing collaboration in economic and trade sectors as it grapples with a prolonged economic crisis that drained its resources, triggered double-digit inflation in the country and weakened its currency over the past two years.
In 2023, Pakistan formed the Special Investment Facilitation Council (SIFC), a hybrid civil-military body tasked with fast-tracking decisions related to foreign investment.
The SIFC aims to attract investment in minerals, agriculture, livestock, energy, tourism and other vital sectors of Pakistan’s economy, mostly from Gulf countries.
Direct Pakistan-Bangladesh shipping route marks rebuilding ties
- Dhaka’s ties with New Delhi frayed after former PM Sheikh Hasina flew to India after violent protests
- Ship from Karachi brought goods from Pakistan and the United Arab Emirates to Bangladesh’s Chittagong
DHAKA: The first cargo ship in decades to sail directly from Pakistan to Bangladesh successfully unloaded its containers, port officials told AFP Sunday, as both sides seek to rebuild ties after decades of frosty relations.
The two countries, once one nation, split in 1971 after a brutal war, with Bangladesh then drawing closer to Pakistan’s rival India.
But its ties with New Delhi have frayed after a student-led revolution in August toppled Bangladesh’s autocratic leader Sheikh Hasina, who fled to India by helicopter.
The 182-meter (597-foot) long container ship — the Panama-flagged Yuan Xiang Fa Zhan — had sailed from Pakistan’s Karachi to Bangladesh’s Chittagong.
Top Chittagong port official Omar Faruq confirmed to AFP on Sunday that the ship had unloaded its cargo on November 11 before departing.
Pakistan’s envoy to Dhaka, Syed Ahmed Maroof, sparked widespread discussion on social media in Bangladesh when he said after the docking that the direct shipping route was “a major step” in boosting trade across the region.
The route will “promote new opportunities for businesses on both sides,” Maroof wrote on Facebook.
Chittagong port authorities said the ship brought goods from Pakistan and the United Arab Emirates, including raw materials for Bangladesh’s key garment industry and basic foodstuffs.
In September, Bangladesh eased import restrictions on Pakistani goods, which previously required a mandatory physical inspection on arrival which resulted in long delays.
Pakistani goods previously had to be off-loaded onto feeder vessels — usually in Sri Lanka, Malaysia or Singapore — before traveling to Bangladesh.
Pakistan unveils first Carbon Market Policy to attract green investment, curb pollution
- Pakistan wants to transition toward a low-carbon economy, says PM’s coordinator on climate change
- Carbon markets refer to systems that reduce greenhouse gas emissions by offering financial incentives
ISLAMABAD: Pakistan’s Coordinator to the Prime Minister on Climate Change Romina Khurshid Alam on Sunday unveiled the country’s first National Carbon Market Policy, saying that the government wanted to attract investments in green initiatives and transition toward a low-carbon economy.
Carbon markets refer to systems that aim to reduce greenhouse gas emissions by allowing companies or organizations to buy and sell “carbon credits.” This is achieved by offering financial incentives to these entities to cut emissions.
Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. International donors pledged over $9 billion last January to aid Pakistan’s flood recovery but officials say little of the promised funds have been received so far.
“Let me say this confidently that Pakistan is now ready to lead, innovate and collaborate with local private sector as well as international partners for the development of carbon markets to attract investments in green initiatives for achieving climate goals under the Paris climate pact,” Alam said in a statement.
Alam was attending an event held at the Pakistan Pavilion in Baku, during the sidelines of the global COP29 climate conference, to launch the country’s first carbon market policy. The event was attended by members of international civil society organizations, delegation members of different countries, academia, researchers, policymakers and journalists.
“By participating in such markets, Pakistan can incentivize businesses and industries to adopt cleaner technologies and practices,” she said.
Alam said the success of Pakistan’s carbon markets will depend on its ability to collaborate with international partners.
“We welcome partnerships with international investors, organizations, and governments to ensure that this market becomes a regional and global success story,” she said.
Pakistani Prime Minister Shehbaz Sharif, who spoke at a number of events at COP29 earlier this week, used the forum to highlight the need to restore confidence in the pledging process and increase climate finance for vulnerable, developing countries.
The main task for nearly 200 countries at the COP29 summit from Nov. 11-22 is to broker a deal that ensures up to trillions of dollars in financing for climate projects worldwide.
No indication from Pakistan on trying Imran Khan in military court — UK foreign secretary
- UK Foreign Secretary David Lammy says Khan, like other Pakistani prisoners, has right to fair trial and due process
- Pakistan’s military has initiated trials of at least 103 Khan supporters accused of attacking military installations last year
ISLAMABAD: UK Foreign Secretary David Lammy recently assured a fellow parliamentarian that there have been “no recent indications” from Pakistani authorities that they intend to try former prime minister Imran Khan in a military court, reiterating that he had the right to a fair trial and due process.
Protesters linked to Khan’s Pakistan Tehreek-e-Insaf (PTI) party attacked and damaged government and military buildings on May 9, 2023, after his brief arrest that day in a land graft case. Hundreds of PTI followers and leaders were arrested following the riots. The military has also initiated trials of at least 103 people accused of involvement in the violence.
The development raised fears among Khan supporters of his possible trial by a military court, prompting the former prime minister to file a petition in the Islamabad High Court against it. The petition was dismissed by the court in September after the government said it had not decided whether or not it wanted to try the former premier.
Pakistan’s military spokesperson in September hinted at Khan’s possible military trial, saying that though the matter was sub judice, using military personnel for personal or political gains invites legal action.
In response to an Oct. 16 letter penned by Labour legislator Kim Johnson, Lammy assured him that the UK government engages regularly “at a senior level” with Pakistan on the country’s political situation.
“We have no recent indications from the Pakistani authorities that they intend to try Imran Khan in a military court, but my officials continue to monitor the situation closely,” Lammy wrote in a letter to Johnson dated Nov. 11.
The UK official said he has raised concerns about the potential use of military courts to try civilians, including Khan. Lammy added that such courts can lack transparency and independent scrutiny, making it difficult to assess their compliance with international standards.
“While Pakistan’s judicial processes are a domestic matter, we have been very clear that the Pakistani authorities need to act in line with their international obligations and with respect for fundamental freedoms, including the right to a fair trial, due process and humane detention,” he wrote.
“This applies to Imran Khan as it does to all Pakistan’s citizens.”
Lammy said he remains concerned by restrictions on freedom of expression and assembly in Pakistan, including those in relation to political opposition.
“In our engagements with the authorities, we continue to underline that the freedom to hold and express views without censorship, intimidation or unnecessary restriction is a cornerstone of democracy,” he said.
Khan’s close aide, Sayed Zulfikar Bukhari shared Lammy’s letter on social media platform X.
“Respect for free and fair elections, and the rule of law, underpinned by an independent judiciary, are the bedrock of a democracy,” Bukhari wrote. “Pakistanis continue to struggle for theirs.”
Khan, arguably Pakistan’s most popular politician, was ousted from office after a parliamentary no-trust vote in April 2022 and has since waged an unprecedented campaign of defiance against the country’s powerful military and Prime Minister Shehbaz Sharif-led government.
Khan’s party says the military and his political rivals rigged the Feb. 8 general election to form the Sharif-led government. Both deny the charge.
