KARACHI: Pakistan on Friday launched the National Payments System Strategy (NPSS) to boost its economic growth by seven percent, create four million jobs and attract $263 billion of new deposits by 2025, officials said.
State Bank of Pakistan Governor Dr. Reza Baqir and World Bank President David Malpass launched the NPSS in Karachi, targeting one million new Point of Sales (PoS) as part of the country’s plan to digitize its economy and achieve greater financial inclusion.
“The State Bank will continue to strengthen legal and regulatory framework [of the country] to bring it in line with the best international practices. Our main focus will be to digitize retail payments and introduce new digital instruments in the country. We would like to give the challenging target of digitizing a million new merchant locations within the next three years,” Dr. Baqir said at the launching ceremony of the NPSS at the headquarters of the country’s central bank.
The availability of PoS acceptance devices has grown more briskly than that of ATMs. By FY2019, there were 56,911 PoS acceptance devices in use, 48 for every 100,000 adults, according to the SBP. The central bank estimates that the digitization of payment system will represent a potential market of $36 billion by 2025.
Pakistan’s market is mainly dominated by cash-based commercial transactions with very little use of electronic payments, especially by micro and small retailers. The country’s economic managers hope that the digitization of the economy will also provide sufficient resources for investment purposes.
“Digital inclusion is part of our strategy which will ultimately provide pool of massive resources for financing investment in Pakistan,” Dr. Baqir said. “It will be easier to make and receive payments which will also help people save and plan their financial future better.”
Speaking on the occasion the World Bank president called on banks and other institutions to collaborate and increase the number of individuals and formal businesses using the system, saying: “An increase in the number of users will bring down the cost of transactions.”
Malpass also offered the help of the World Bank to implement the national payment strategy as part of the global push for digital financial inclusion. “The [State Bank] governor can call me or my team,” he added. “We have a very strong team in Pakistan with expertise, energy and drive. We want to help make [the system] work.”
Officials say the objective of the government’s strategy is to make recommendations to design a National Payments System that is in compliance with international standards and best practices, besides being tailored for specific circumstances and needs for a safe, efficient and inclusive National Payment Systems in Pakistan.
Pakistan launches national strategy to move from cash to electronic payment system
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Pakistan launches national strategy to move from cash to electronic payment system
- The country expects the change to result in seven percent economic growth rate by 2025
- The new payment mechanism will also result in greater financial inclusion in Pakistan
Pakistan PM pledges support for overseas workers amid surge in remittances
- PM promises to resolve issues of overseas Pakistanis and let their voices be heard at the highest level
- He praises Pakistanis who return home with valuable expertise, saying their training helps drive economy
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday pledged to provide maximum facilities to overseas Pakistanis, recognizing their contribution to the national economy and highlighting that remittances had increased by 30 percent due to their hard work and commitment.
Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments.
The country’s central bank last month reported $3.1 billion in remittance inflows for December 2024, reflecting a 29.3 percent year-on-year growth.
The State Bank of Pakistan also noted a 5.6 percent increase in remittances compared to November 2024, highlighting the importance of expatriate earnings in shoring up the nation’s finances.
“We will make every effort to resolve your issues and ensure that your voice is heard at the highest level,” the prime minister said while addressing the Overseas Pakistanis Global Foundation Convention, according to the Associated Press of Pakistan.
“Your efforts have greatly benefited the national exchequer, bolstering the country’s reserves and reinforcing our economic standing,” he continued while mentioning 30 percent remittance increase in December.
Sharif directed the Ministry of Overseas Pakistanis and Human Resource Development to restore the Green Channel initiative to facilitate expatriates and announced the formation of a body to recognize distinguished diaspora members contributing to national development.
He also commended Pakistanis living abroad who, after gaining top-tier training, have returned to help drive economic growth as experts, investors and entrepreneurs.
“Many of you have returned home with valuable expertise, and your continued investments in the country’s economy are vital to our future,” he added.
Senators back tougher human smuggling laws as 13 Pakistanis identified in Morocco boat tragedy
- Senate Standing Committee on Interior suggests minimum sentence of three years for human smugglers
- Foreign office says the mortal remains of four victims of Morocco boat tragedy will soon arrive in Islamabad
ISLAMABAD: Pakistan’s Senate Standing Committee on Interior on Tuesday discussed increasing the minimum sentence for human smuggling to three years, as the country’s foreign office confirmed the identity of 13 Pakistanis who died last month in a boat tragedy off Morocco’s coast.
The Pakistani government has made several arrests in recent weeks after a boat carrying 86 migrants to Europe, including several Pakistanis, capsized near Morocco on January 16, according to the rights group Walking Borders.
Moroccan authorities said a day later that 36 people had been rescued, while the foreign office in Islamabad confirmed that the survivors included 22 Pakistanis.
The Morocco tragedy underscored the perilous journeys many migrants undertake due to conflict and economic hardship. Soon after the development, Pakistani authorities ramped up efforts to crack down on human smuggling networks facilitating dangerous crossings to Europe.
“The Committee discussed the ‘Prevention of Smuggling of Migrants (Amendment) Bill, 2025,’” an official statement said after the meeting was convened at Parliament House in Islamabad. “The Secretary, Ministry of Interior, emphasized the need to strengthen legal provisions to enhance deterrence.”
“The draftsman from the Ministry of Law informed the Committee that the amendment introduces a minimum sentence of three years, which will reinforce deterrence and ensure better enforcement of the law,” the statement continued. “The Committee members unanimously agreed to pass the bill and underscored the importance of strict adherence to legal enforcement.”
The Senate committee also reviewed other legislative measures related to migration and trafficking.
Meanwhile, the foreign office spokesperson, Shafqat Ali Khan, mentioned the boat tragedy in a statement.
“After a process of extensive verification, the bodies of 13 Pakistani nationals have been identified,” he said, adding the mortal remains of four victims would arrive in Islamabad on February 5 via a Saudi airline flight.
The latest tragedy adds to a series of migrant boat disasters involving Pakistanis attempting to reach Europe via dangerous sea routes.
In June 2023, an overcrowded vessel sank in international waters off the Greek town of Pylos, killing hundreds of migrants, including 262 Pakistanis, in one of the deadliest Mediterranean shipwrecks on record.
More recently, five Pakistani nationals died in a shipwreck off the Greek island of Gavdos on December 14.
Pakistan cuts this year’s Hajj costs, announces $17 million in refunds for last year’s pilgrims
- The religious affairs minister announces Hajj cost reductions of up to $179 for pilgrims
- Chaudhry Salik Hussain says the government’s 2025 Hajj quota has been fully utilized
ISLAMABAD: Federal Minister for Religious Affairs Chaudhry Salik Hussain on Tuesday announced a reduction of up to Rs50,000 ($179) in this year’s Hajj packages and a refund of over Rs4.75 billion ($17 million) to 2024 pilgrims.
Last month, Pakistan and Saudi Arabia signed the Hajj Agreement 2025, under which 179,210 Pakistanis will perform the annual pilgrimage this year. The quota is divided equally between government and private schemes.
To make the pilgrimage more convenient and accessible, Pakistan has introduced a shortened Hajj program of 20 to 25 days. The Ministry of Religious Affairs initially set the cost at Rs1,075,000 ($3,854) for the long Hajj package and Rs1,150,000 ($4,122) for the short Hajj package, as shorter stays often incur higher airfare, premium accommodation rates and expedited transport services, driving up overall costs.
For the first time, the Hajj Policy 2025 also allowed pilgrims to pay in installments, easing financial constraints. Under the scheme, the first installment of Rs200,000 ($717) was required with the application, followed by Rs400,000 ($1,435) within 10 days of balloting, while the remaining amount had to be paid by February 10.
“After successful negotiations by our committee in Saudi Arabia, the cost of the 40-day long Hajj package has been reduced by Rs25,000 ($90) to Rs1,050,000 ($3,764), while the 25-day short Hajj package has been reduced by Rs50,000 ($179) to Rs1,100,000 ($3,943),” Hussain told reporters in Islamabad.
He said pilgrims must submit the third installment in designated banks between February 6 and February 14, while every pilgrim will receive a notification via the ‘Pak Hajj’ cellphone app launched by the government.
The app is designed to provide real-time updates, guidance, emergency contacts, lodging details, route navigation and complaint registration to ensure a smooth pilgrimage experience.
“Pilgrims opting for the long Hajj package will need to pay a third installment of Rs450,000 ($1,613), while the third installment for the short Hajj package will be Rs500,000 ($1,794),” Hussain said.
He further informed that over Rs4.75 billion ($17 million) will be refunded to 2024 Hajj pilgrims, citing savings in sacrificial animal costs and airfare reductions.
“Refunds will be disbursed into pilgrims’ accounts from February 7 onwards,” he added.
The minister said this year’s government Hajj quota has been fully utilized and expressed hope that pilgrims will have an even better experience than last year.
“Pilgrims will have assistance available at all times, as one Hajj assistant will be assigned for every 150 pilgrims,” he continued.
“The assistant will travel with the pilgrims from the Hajj camp, stay with them and return with them, ensuring continuous support throughout the journey,” he added.
Pakistan’s top generals seek ‘concrete’ action from Afghanistan against Taliban militants
- Corps commanders call statements by Indian military leaders against Pakistan ‘reckless and provocative’
- They seek socio-economic development of Balochistan to thwart ‘externally driven narratives of exclusion’
ISLAMABAD: Pakistan’s top generals called for “concrete and tangible actions” against militants by the Taliban administration in Kabul on Tuesday, while vowing to take all necessary measures to defend the country’s territorial integrity amid a surge in violence by armed groups in its two western provinces in recent years.
Pakistan’s northwestern province of Khyber Pakhtunkhwa (KP), which borders Afghanistan, and the southwestern province of Balochistan, which shares frontiers with both Afghanistan and Iran, have witnessed rising militant and separatist violence. Most attacks in KP are claimed by the Pakistani Taliban, known as Tehreek-e-Taliban Pakistan (TTP), an umbrella alliance of militant groups.
Islamabad has frequently accused Afghanistan of sheltering anti-Pakistan groups, particularly the TTP, which the Pakistani government refers to as “Fitna Al Khawarij,” saying that these militants launch cross-border attacks from Afghan soil. Kabul denies the allegations, insisting that Afghanistan does not allow its territory to be used against any country.
Pakistan’s overall security situation was reviewed during the 267th Corps Commanders’ Conference, held at the General Headquarters (GHQ) in Rawalpindi and chaired by Chief of Army Staff General Asim Munir, the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement.
“Expressing grave concern over the continued use of Afghan soil by Fitna Al Khawarij for terrorist activities against Pakistan, the forum stressed the imperative of concrete and tangible actions by the Interim Afghan Government against Fitna Al Khawarij instead of denials, as well as continuing with the strategy of undertaking all necessary measures in defense of Pakistan and its people,” the ISPR said.
The conference also emphasized the need to accelerate people-centric socio-economic development initiatives in Balochistan, while countering “externally driven narratives of exclusion” in the region.
A key strategic province and home to the multibillion-dollar China-Pakistan Economic Corridor (CPEC), Balochistan has long grappled with separatist violence led by groups like the Baloch Liberation Army (BLA) and its affiliates.
These insurgents have carried out coordinated attacks, suicide bombings and targeted killings, primarily against the Pakistani military, Chinese workers and non-Baloch settlers, particularly from Punjab.
The violence has often been linked to grievances over political marginalization and resource control, though Pakistani officials have denied these claims while saying they are carrying out major projects to improve the quality of life and livelihood of people.
“No one will be allowed to disrupt peace in Balochistan, and nefarious designs of foreign-sponsored proxies attempting to mislead and radicalize the youth of Balochistan will be decisively thwarted with the unwavering support of the people of Balochistan,” the statement added.
The top army generals also discussed the situation along the Line of Control (LoC) and the Working Boundary with India, condemning “human rights violations” in Indian-administered Kashmir and recent statements by Indian military leadership against Pakistan that they termed “reckless and provocative.”
“Pakistan Army remains fully prepared to defend the country’s sovereignty and territorial integrity,” General Munir told the gathering.
“These hollow statements from the Indian military are indicative of their growing frustration and serve only to divert the attention of their masses and the international community from their multiple internal fissures and blatant violations of human rights,” he added. “Any misadventure against Pakistan will be responded to with full and resolute force of the state.”
The corps commanders’ conference also reaffirmed the military’s commitment to its constitutional responsibilities and pledged to continue military training and exercises in both conventional and counter-terrorism domains.
Pakistan Navy announces participation of two Saudi warships in AMAN-25 naval drills
- The ninth edition of Pakistan’s AMAN exercise will be held this month from February 7 to 11
- AMAN-2025 will witness the participation of nearly 60 countries with over 200 observers
KARACHI: A senior Pakistani naval official said on Tuesday two Saudi warships, HMS Jazan and HMS Hail, will participate in the ninth edition of his country’s naval exercise, AMAN-25, which is scheduled to be held from February 7 to 11.
The AMAN exercise, held every two years in the North Arabian Sea, is a multinational naval drill organized by the Pakistan Navy to enhance regional maritime security and interoperability among allied forces. The exercise was first held in 2007 and has since attracted participants from across the world.
According to official information, AMAN-2025 will witness the participation of nearly 60 countries and will be conducted in two phases. The harbor phase will take place from February 7 to 9, while the sea phase, running from February 10 to 11, will include search and rescue operations, live weapon firings and an international fleet review.
Rear Admiral Abdul Munib, Commander of the Pakistani Fleet, highlighted his country’s strong maritime ties with Saudi Arabia during a news conference.
“Saudi Arabia is a brotherly country,” he said, as he mentioned the participation of the Royal Saudi Naval Forces in the exercise while pointing out that Pakistan also enjoyed close relations with the United Arab Emirates (UAE).
“Pakistan’s relations with both these countries are already strong, but there is also a very close navy-to-navy collaboration with them,” he continued. “We have conducted a number of exercises with them, and both countries will also be actively participating in this exercise.”
Calling the participation from Saudi Arabia “very encouraging,” the naval official said in addition to the two Saudi ships, the Kingdom’s Special Operations Forces (SOF) and Underwater Demolition (UWD) teams would also participate.
“The UAE has one ship participating as well, and their SOF and UWD teams are also participating,” he added.
This year’s exercise is expected to include a wide range of maritime professionals, with over 200 observers from around the world in attendance.
The Pakistani rear admiral noted the role of the AMAN Dialogue, which is scheduled to take place alongside the exercise. He informed it will bring together naval chiefs, coast guards and defense forces from participating nations.
The forum will allow military leaders to exchange insights and discuss strategies for addressing emerging maritime challenges.
“More than just a military drill, AMAN embodies Pakistan’s unwavering commitment to fostering regional stability, ensuring safe and secure seas and countering nontraditional and asymmetric threats,” he maintained.
“Above all, it serves as a vital platform for strengthening interoperability, information sharing and mutual understanding among like-minded regional and extra-regional navies, thus reinforcing the belief that maritime security is a shared responsibility,” he added.
