KARACHI: A senior member of the ruling Pakistan Tehreek-e-Insaf (PTI) government, which has been chasing PayPal Holdings Inc to start Pakistan operations, said the country was still in talks with the worldwide payments processor and “hopeful” it would launch services soon in the South Asian nation of 208 million.
As of this year, PayPal operates in about 200 markets and has 277 million registered accounts, allowing customers to send, receive, and hold funds in 25 currencies. Around 200,000 freelancers and over 7,000 registered small and medium enterprises (SMEs) would benefit if PayPal entered the Pakistani market.
The online payment industry is pegged to grow ten-fold to $500 billion by 2020, but last week, Senator Mian Mohammad Ateeq Shaikh told the Senate Standing Committee on Information and Technology that PayPal was afraid to enter Pakistan in the absence of laws to protect the company’s interests.
“The issue is under consideration, and we are hopeful [PayPal will enter Pakistan],” Muhammad Abdul Ghafar Wattoo, member of the National Assembly’s Standing Committee on Information Technology and Telecommunication, told Arab News.
PayPal, an Elon Musk-founded company, will allow Pakistani consumers to use the platform to shop online at some of the country’s most popular businesses. Merchants accepting PayPal will also be able to process both local and global payments through PayPal, getting access to the payment processor’s more than 218 million customers around the world and in Pakistan.
Industry insiders say one of the major bottlenecks to PayPal coming into Pakistan is a central bank-mandated $2 million license fee.
“For a company like PayPal, which earns between 2% to 3% on transactions, even a $100 million transaction a year could not justify a $2 million license fee,” Dawn reported this week.
Freelancer graphic designer Zoha Kaml Azmi said she was disappointed when she heard PayPal was refusing to start Pakistan operations.
“I had found a really good freelance site based in England but the client couldn’t pay me as I didn't have a PayPal account,” Azmi said. “I was very happy I could get myself registered on those freelance sites. PayPal is a global gateway that connects to the larger world. There are many freelance opportunities that I am missing because PayPal doesn’t exist in Pakistan.”
In the absence of PayPal or another internationally recognized payment gateways, Pakistani freelancers and SMEs have hacked other ways of providing services and being paid from abroad, according to the Secretary-General of the Pakistan Software Houses Association, Shehryar Hydri. Many SMEs and freelancers open accounts abroad through their relatives or friends and receive payments there, he said.
“From the government’s point of view, this is a major leakage in the system when people are forced to keep their money abroad,” Hydri said.
Pakistani technology company owners say Paypal launching operations in Pakistan could also solve the problem of stuck up payments abroad.
“Mostly clients in the US and Europe use PayPal,” said Mashal Amir, who heads Octopus Private Limited, a call center. “Whenever they float the project online they attach the conditions of having a PayPal account as well for payment. In Pakistan’s case, we miss opportunities due to non-existence of the facility and due to the payments remaining stuck for many years.”
He added: “The clients often question why they should open new account just for us on other networks when entire world works on PayPal.”
SM Arif, a financial and banking technologist, said the presence of global players like PayPal would allow access for Pakistani freelancers and companies to international markets.
“Otherwise it looks like they are operating in isolation,” Arif said. “To deal with foreigners in the international market you show the world that a conducive environment exists in your country. The big player boost the confidence of all players in that market. It makes you a part of the global economy, the world.”
Pakistan still ‘hopeful’ online payment giant PayPal will play ball
Pakistan still ‘hopeful’ online payment giant PayPal will play ball
- Around 200,000 freelancers, 7,000 small and medium enterprises will benefit if PayPal started operations in Pakistan
- Last week, a parliamentary committee said PayPal was afraid to enter Pakistan in absence of laws to protect company’s interests
Ten army, two paramilitary soldiers killed as militants attack check post — Pakistan army
- Tuesday’s attack took place on joint army-FC check post in Mali Khel area of Bannu District
- Seven policemen abducted by gunmen from Bannu district on Monday recovered by police
ISLAMABAD: Ten Pakistan army soldiers and two from the paramilitary Frontier Constabulary were killed on Tuesday as militants attacked a checkpost in the northwestern Bannu district, the army said in a statement on Wednesday.
Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has seen a surge in attacks in recent months, which Islamabad says are mostly carried out by Afghan nationals and their facilitators and by Tehreek-e Taliban Pakistan (TTP) and other militant groups who cross over into Pakistan using safe haven in Afghanistan. The Taliban government in Kabul denies the charges, saying Pakistan’s security challenges are a domestic issue.
The remote southwestern province of Balochistan has also seen an increase in strikes by separatist ethnic militants this year.
Tuesday’s attack was on a joint army-FC check post in the Mali Khel area of Bannu District, with six militants killed in the exchange of gunfire, the army said.
“The attempt to enter the post was effectively thwarted by own troops, which forced the khwarij [militants] to ram an explosive laden vehicle into the perimeter wall of the post,” the statement said.
“The suicide blast led to collapse of portion of perimeter wall and damaged the adjoining infrastructure, resulting in Shahadat [martyrdom] of twelve brave sons of soil that include ten Soldiers of the security forces and two soldiers of Frontier Constabulary.”
On Monday, seven policemen were abducted from a check post in Bannu district, but the cops were recovered on Tuesday through the efforts of local tribal elders and a massive search operation by police in the unforgiving mountainous terrain.
The TTP, which operates along the Pak-Afghan border, is separate from the Afghan Taliban movement, but pledges loyalty to the Islamist group that now rules Afghanistan after US-led international forces withdrew in 2021.
Islamabad says TTP uses Afghanistan as a base and that the ruling Taliban administration has provided safe havens to the group close to the border. The Taliban deny this.
Pakistan VPN ban could hike IT sector operational costs by $150 million annually — association
- Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in fiscal year 2024
- Business Council says many multinational firms considering relocating from Pakistan, some having “already done so”
KARACHI: The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, has warned this week Internet slowdowns and the restriction of virtual private network (VPN) services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.
Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in FY24.
Internet speeds in Pakistan have dropped by up to 30-40 percent over the past few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP) as the federal government moves to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Authorities have also announced a ban on the use of VPNs in the country.
Pakistan has already blocked access to social media platform X since the February general elections, with the government saying the blocking was to stop anti-state activities and due to a failure by X to adhere to local Pakistani laws.
Rights activists say all these moves are designed to stifle critical voices and democratic accountability in the country, which the government denies.
“Internet slowdown and blocking of virtual private network (VPN) services will certainly translate into an existential threat as it will result in unrecoverable financial loss, service disruptions, and reputational loss in the export of IT and IT-enabled Services (ITeS),” P@SHA Chairman Sajjad Mustafa Syed said in a statement released on Tuesday, putting “cautious estimates” of the increase in operational costs of the IT industry from VPN blockages at between $100-150 million each year.
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” P@SHA also said that month Pakistan’s economy could lose up to $300 million a year due to Internet disruptions caused by the imposition of the firewall.
“Even by conservative estimates the IT industry will suffer losses in tens of millions of dollars in the short term; and the reputational and intangible loses will be huge and devastating for the industry in the longer run, especially with the global competitive landscape evolving in this space,” Syed said.
He said the Internet slowdown and VPN blocks would deal a “huge blow” to one of the fastest-growing industries of Pakistan and create a “domino effect” on other sectors of the economy.
“Domestic and international IT companies will be forced to close or significantly restrict their operations in Pakistan – and it will be detrimental to the most flourishing industry of Pakistan vis-à-vis exports, skills development and employment generation,” Syed added.
“In addition to this, it will be extremely demoralizing and discouraging for our IT companies, their workforce, start-up entrepreneurs, freelancers, and everyone involved in the sector – who are working very hard to bring Pakistan at the forefront of global technology destinations.”
Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.
“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” Syed said.
“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”
He said the estimated financial losses from the moves did not include the inevitable loss of livelihoods of remote workers and freelancers, urging authorities to engage with P@SHA, industry leaders, and relevant stakeholders to develop a “balanced and secure framework” that safeguarded national security without compromising the operational needs of the IT and other economic sectors of Pakistan.
Washington says working with Pakistan to enhance civilian and military anti-terror capabilities
- Pakistan’s northwestern Khyber Pakhtunkhwa province has seen surge in militant attacks in recent months
- Southwestern province of Balochistan has also seen increase in strikes by separatist ethnic militants this year
ISLAMABAD: US State Department Spokesman Matthew Miller said this week Washington was working closely with Pakistan to enhance the counterterrorism capabilities of its civilian and military agencies, amid a rise in militancy in the South Asian nation.
Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has seen a surge in militant attacks in recent months, which Islamabad says are mostly carried out by Afghan nationals and their facilitators and by Tehreek-e Taliban Pakistan (TTP) and other militant groups who cross over into Pakistan using safe haven in Afghanistan. The Taliban government in Kabul denies the charges, saying Pakistan’s security challenges are a domestic issue.
The remote southwestern province of Balochistan has also seen an increase in strikes by separatist ethnic militants this year.
“We continue to have an important bilateral counterterrorism partnership with the Government of Pakistan, and it includes regular high-level dialogues and working level consultations dedicated to enhancing both civilian and military capabilities to detect and counter these type of threats,” Miller said at a press briefing on Tuesday evening.
Responding to a question about media reports that eight Pakistani soldiers had been killed in the country’s northwest, and seven police officers abducted near the Afghan border, Miller said the US “condemned these and all terrorist attacks.”
“I would just say, as these horrific attacks against the Pakistani people continue, we remain committed to engaging with government leaders and civilian institutions to identify opportunities to build capacity in detecting, preventing, and responding to threats posed by militant terrorist groups,” the spokesman added.
On Tuesday, Pakistan said it had approved a “comprehensive military operation” against separatist militant groups operating in Balochistan. The government did not provide any details of the military operation such as when it would be launched and in which parts of the province and which security agencies would participate.
Pakistan, Saudi Arabia discuss ‘beggar mafia’ menace, vow crackdown — interior ministry
- Beggars abusing visas to beg in foreign countries has Pakistan worried it could impact genuine visa-seekers and religious pilgrims
- Interior minister says names of 4,300 beggars added to no-fly list, “zero tolerance policy” being adopted against beggar mafia
ISLAMABAD: Pakistani interior minister Mohsin Naqvi on Wednesday met Saudi Deputy Interior Minister Dr. Nasser bin Abdulaziz Al-Dawood in Islamabad and discussed the growing menace of Pakistanis traveling to the Kingdom on pilgrim and other visas and resorting to begging, the interior ministry said.
The trend of beggars abusing visas to beg in foreign countries has Pakistan worried that it could impact genuine visa-seekers and particularly religious pilgrims to Saudi Arabia. According to widespread media reports, Riyadh has raised this issue with Islamabad at various forums.
“Discussions on suppressing the mafia that sends beggars from Pakistan to Saudi Arabia discussed,” the Pakistani interior ministry said in a statement after Naqvi met Al-Dawood. “A zero tolerance policy has been adopted against beggars going to Saudi Arabia.”
The interior minister said the names of 4,300 beggars had been added to a no-fly list and an “effective crackdown” was being carried out across the country.
The two officials also agreed to implement a prisoner exchange agreement, with Naqvi saying legal proceedings for the repatriation of 419 Pakistani prisoners in Saudi Arabia would be “completed soon.”
Previously, Naqvi had tasked the Federal Investigation Agency (FIA) with cracking down on the network of beggars traveling illegally, saying it was damaging Pakistan’s image abroad.
Pakistanis are the second-largest expatriate community in the Kingdom, with over 2.5 million living and working in Saudi Arabia, the top source of remittances to the South Asian country.
Pakistani privatization chief pitches sale of PIA, other state entities to Azerbaijani officials
- Pakistan is looking to sell debt-ridden state enterprises as envisaged under $7 billion IMF program approved in September
- Pakistan wants to position itself as pivotal trade and transit hub connecting China and Central Asia with the rest of the world
ISLAMABAD: Pakistan’s privatization chief Abdul Aleem Khan on Wednesday met Azerbaijan’s economy minister Mikayil Jabbarov and discussed, among other issues, the sale of national carrier PIA and other loss-making state entities.
Cash-strapped Pakistan is looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program approved in September. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.
PIA’s existing liabilities stand at approximately Rs250 billion ($896 million).
Pakistan is also trying to sell power distribution (discos) and other loss-making state owned companies that are a main hole in its $350 billion economy.
“Discussions with the Azerbaijani government on government-to-government and business-to-business partnerships regarding privatization in Pakistan were discussed in the meeting,” Khan’s office said in a statement after he met Jabbarov in Baku.
“Participation in privatization of PIA, Agricultural Development Bank, discos, utility stores and other projects offered.”
According to the statement from the Pakistani side, Khan said Pakistan and Azerbaijan could make “mutual investments” in the LNG and renewable energy sectors.
“There can be huge investments in the IT sector, telecom, agriculture, energy and other sectors,” Khan said, apprising the Azerbaijani official of cooperation opportunities in Pakistan’s communication sector as well. “We have to take concrete and practical steps to increase the volume of bilateral trade.”
Khan is in Azerbaijan on a two-day visit, and will attend various meetings aimed at discussing investment opportunities and strengthening bilateral relations.
Pakistan wants to position itself as a regional trade hub, leverage its strategic geopolitical position and enhance its role as a pivotal trade and transit hub connecting China and Central Asia with the rest of the world. In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan, China and Central Asian states, including Uzbekistan, Azerbaijan, Tajikistan and Turkmenistan.
