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
Pakistan rejects US allegations over missile program as ‘devoid of rationality’
- A senior US official this week said Pakistan was developing long-range missiles that could threaten the US
- The statement came after Washington said it was imposing new sanctions related to Pakistan’s missile program
ISLAMABAD: Pakistan’s Foreign Office on Saturday dismissed as “unfounded” and “devoid of rationality” the allegations by a senior United States (US) official that its missile program posed a threat to the United States.
The Foreign Office statement came in response to comments made by US Deputy National Security Adviser Jon Finer, who said nuclear-armed Pakistan’s development of long-range ballistic missiles could potentially target the US.
The statement came after the US said it was imposing new sanctions related to Pakistan’s missile program, including on the state-owned defense agency that oversees the program. The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them.
The Foreign Office said that Pakistan had made it abundantly clear that its strategic program and allied capabilities were meant to thwart a “clear and visible existential threat from our neighborhood” — a reference to arch-foe India — and should not be perceived as a threat to any other country.
“The alleged threat perception from Pakistan’s missile capabilities and delivery means, raised by the US official are unfortunate. These allegations are unfounded, devoid of rationality and sense of history,” the Foreign Office said in a statement.
“Since 1954, Pakistan and the US have enjoyed a positive and broad-ranging relationship. The recent spate of US allegations toward a major non-NATO ally would be unhelpful for the overall relationship, especially in the absence of any evidence in this regard. Pakistan has never had any ill-intention toward the US in any form or manner, and this fundamental reality has not changed.”
Finer’s statement underscored how far the once-close ties between Washington and Islamabad had deteriorated since the 2021 US troop withdrawal from Afghanistan. It also raised questions about whether Pakistan has shifted the objectives of nuclear weapons and ballistic missile programs long intended to counter those of India, with which it has fought three major wars since 1947.
But the Foreign Office said Pakistan’s strategic capabilities were solely meant to defend its sovereignty, highlighting Pakistan’s long history of cooperation with the US, particularly in the counter-terrorism domain.
“We wish to reiterate that Pakistan’s strategic capabilities are meant to defend its sovereignty and preserve peace and stability in South Asia,” it said.
“Pakistan cannot abdicate its right to develop capabilities that commensurate with the need to maintain credible minimum deterrence as well as evolving and dynamic threats.”
Relations between the US and Pakistan have seen significant ups and downs. The countries collaborated during the Cold War and in the fight against Al-Qaeda after 9/11.
However, ties have been strained due to coups in the South Asian country by Pakistan’s military, support for the Taliban’s 1996-2001 rule in Afghanistan, and over the nuclear weapons program.
Pakistan urges Afghanistan to boost border security as infiltration attempt kills five
- Military says four TTP fighters and a soldier were killed as militants tried to enter Pakistani territory
- Statement comes after media reported a deadly attack on a military outpost that killed 16 soldiers
ISLAMABAD: The Pakistan military on Saturday urged the Taliban administration in Kabul to ensure robust border management after a group of militants tried to infiltrate from Afghanistan, leading to a skirmish that left four infiltrators and a soldier dead.
Relations between Islamabad and Kabul have deteriorated in recent years as militant violence surged in Pakistan, fueled by attacks from Tehreek-e-Taliban Pakistan (TTP) militants in the northwestern Khyber Pakhtunkhwa province.
Pakistani officials blame the TTP for the escalating violence, accusing the Afghan authorities of turning a blind eye to militants using their territory to launch cross-border attacks.
However, Kabul denies these allegations, insisting that Pakistan’s internal security is its own responsibility.
“On night 19/20 December, movement of a group of khwarij [TTP militants], trying to infiltrate through Pakistan-Afghanistan border, was picked up by the security forces in general area Rajgal, Khyber District,” the military’s media wing, Inter-Services Public Relations, said in a statement. “Own troops effectively engaged and thwarted their attempt to infiltrate. Resultantly, four Khwarij were sent to hell.”
The statement noted that one of the soldiers, Sepoy Amir Sohail Afridi, also lost his life amid intense exchange of fire.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” it continued. “Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan.”
The ISPR statement comes after media reported a deadly attack on a military outpost in Khyber Pakhtunkhwa which was targeted by 30 militants from three sides. According to anonymous intelligence sources, the attack left 16 soldiers dead. The TTP claimed responsibility for targeting the outpost in a statement that described the attack as a retaliation to the recent killings of its top commanders.
The Pakistan military reiterated in its statement it remained committed to securing the borders. It added that its soldiers would also fight to eliminate the menace of militant violence.
Pakistan Taliban claim raid killing 16 soldiers in northwestern province
- Officials confirm privately militants set fire to the wireless communication equipment, documents
- Pakistan’s military has not issued a statement on the siege of its outpost that lasted for two hours
ISLAMABAD: The Pakistani Taliban claimed a brazen overnight raid on an army outpost near the border with Afghanistan on Saturday, which intelligence officials said killed 16 soldiers and critically wounded five more.
The siege started after midnight and lasted about two hours as around 30 militants pummelled the mountainous outpost from three sides, one senior intelligence official told AFP on condition of anonymity.
“Sixteen soldiers were martyred and five were critically injured in the assault,” he said. “The militants set fire to the wireless communication equipment, documents and other items present at the checkpoint.”
A second intelligence official also anonymously confirmed the toll of dead and wounded in the attack in the Makeen area of Khyber Pakhtunkhwa province, 40 kilometers (24 miles) from the Afghan border.
Pakistan’s domestic chapter of the Taliban claimed the attack in a statement, saying it was staged “in retaliation for the martyrdom of our senior commanders.”
The group claimed to have seized a hoard of military gear including machine guns and a night vision device.
Pakistan’s military has not yet issued a statement on the incident.
Pakistan has been battling a resurgence of militant violence in its western border regions since the Taliban’s 2021 return to power in Afghanistan.
Islamabad accuses Kabul’s rulers of failing to root out militants staging attacks on Pakistan from over the border.
The Pakistani Taliban — known as Tehreek-e-Taliban Pakistan (TTP) — share a common ideology with their Afghan counterparts who surged back to power three years ago.
Kabul’s new rulers have pledged to evict foreign militant groups from Afghan soil.
But a UN Security Council report in July estimated up to 6,500 TTP fighters are based there — and said “the Taliban do not conceive of TTP as a terrorist group.”
The report said the Afghan Taliban show “ad hoc support to, and tolerance of, TTP operations, including the supplying of weapons and permission for training.”
The spike in attacks has soured Islamabad-Kabul relations. Security was cited as one reason for Pakistan’s campaign last year to evict hundreds of thousands of undocumented Afghan migrants.
Pakistan military sentences 25 to prison over May 9 violence, with more verdicts expected
- The sentencing is likely to raise concerns among PTI since Imran Khan faces charges of inciting people
- The ISPR says justice will truly be served when the ‘mastermind and planners’ of May 9 are punished
KARACHI: The Pakistan military on Saturday sentenced 25 people to prison for participating in the violent protests that erupted on May 9, 2023, when hundreds carrying the party flags of former Prime Minister Imran Khan attacked government buildings and vandalized military properties.
The protests, which broke out in different Pakistani cities, followed Khan’s brief detention on corruption charges from an Islamabad court, resulting in damage to major military facilities and martyrs’ monuments.
Subsequently, hundreds of leaders and supporters of Khan’s Pakistan Tehreek-e-Insaf (PTI) party were imprisoned, despite their denial of involvement in violence and claims that the May 9 incident was a “false flag” operation aimed at crushing their party.
The government and military also asserted they had gathered ample evidence that the attack on the country’s most powerful institution was carefully planned and executed by the PTI leadership, sharing videos of the attacks showing people setting fire to government and military properties.
“On 9 May 2023, nation witnessed tragic incidents of politically provoked violence and arson at multiple places, marking a dark chapter in the history of Pakistan,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement, listing down names of all 25 people with sentences ranging from two to 10 years. “Building on a sustained narrative of hate and lies, politically orchestrated attacks were carried out on the installations of the Armed Forces including desecration of the monuments of Shuhada [martyrs].”
It informed that it gathered “irrefutable evidence” against these people after conducting investigations to prosecute those arrested in the wake of the incident. “This is an important milestone in dispensation of justice to the nation,” the ISPR added. “It is also a stark reminder to all those who are exploited by the vested interests and fall prey to their political propaganda and intoxicating lies, to never take law in own hands ever in the future.”
The statement informed the military would share the details of other individuals whose cases had also been referred to the Field General Court Martial.
The ISPR said its announced followed a ruling by a seven-member Constitutional Bench of the Supreme Court of Pakistan on December 13 in which it allowed the military courts to share its verdict.
Prior to that, the court had unanimously declared last year that prosecuting civilians in military courts was in violation of the Constitution.
The sentencing of 25 individuals is likely to raise concerns among supporters of Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.
The ISPR noted that many accused in the May 9 attacks are also facing trials in various anti-terrorism courts.
“However, justice would truly be fully served once the mastermind and planners of 9th May Tragedy are punished as per the Constitution and laws of the land,” it added.
The statement highlighted the significance of establishing “inviolable writ of the State,” as it pointed out that all convicts retained the right to appeal, as guaranteed by the law and the constitution.
Scoop of deceit: Pakistan’s competition watchdog freezes multinationals’ misleading ice cream ads
- Manufacturers of “Walls” and “Omore” have been penalized for passing off ‘frozen desserts’ as ice cream
- The Competition Commission of Pakistan has imposed Rs75 million of fine on each of the two companies
KARACHI: In a chilling blow to “deceptive marketing,” the Competition Commission of Pakistan (CCP) on Friday imposed a hefty fine of Rs75 million ($269,530) each on two multinational companies, Unilever Pakistan and Friesland Campina Engro, for misleading consumers by advertising their products as “ice cream.”
The CCP took action following a complaint by Pakistan Fruit Juice Company, the manufacturer of “Hico,” which objected to the marketing practices adopted by its rivals.
The CCP maintained that the two companies were selling “frozen desserts” while passing them off as ice cream, a distinct product category made from milk, cream or other dairy products.
“It is held that a false and misleading impression of ‘frozen dessert’ as ‘ice cream’ was created and continued by the Respondents through their advertisements, in order to make the consumers believe that ‘frozen dessert’ products are also ‘ice cream,’” the CCP said in its written order.
“The Respondents advertised, labelled and marketed their products without disclosing the true nature of their products as frozen desserts,” it continued, adding that the two companies “took economic advantage of their deceptive marketing practices to the detriment of consumers welfare.”
The CCP’s ruling referenced the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018, which define “frozen dessert” and “ice cream” as distinct products.
According to these standards, “ice cream” is made from milk, cream, or other dairy products, while “frozen desserts” are prepared from a pasteurized mix consisting of edible vegetable oils and other ingredients.
The CCP also noted that other countries, including the US, India and Australia, maintain the same standards, where the term “ice cream” can only be applied to dairy-based products.
The commission instructed the companies to stop their current marketing practices and remove advertisements presenting frozen desserts as ice cream.
It instructed them to provide clear disclosures about their products’ nature and ingredients, adding that failure to comply with the verdict within 30 days would result in additional fines.
