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Pakistan seeks to increase GDP by $36 billion with e-commerce, fintech

In this photo, a woman is seen shopping through a point of sale application. (Photo courtesy: Social media)
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Updated 12 January 2020
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Pakistan seeks to increase GDP by $36 billion with e-commerce, fintech

  • Over 1,200 registered online merchants in Pakistan make Rs40 billion documented transactions annually
  • IT experts urge the government to pass consumer, data protection laws to increase exports
Updated 12 January 2020
Aamir Saeed

ISLAMABAD: Pakistani authorities are planning to boost the country’s gross domestic product (GDP) by $36 billion and create more than 4 million jobs by 2025 through e-commerce use of digital financial services.

The country is focusing on the digitization of the economy by promoting online businesses to increase exports and create job opportunities for youth.

“The IT-led revolution is transforming business processes and all other related things, therefore we need to keep pace with it to increase our exports and create more job opportunities,” Aisha Humera Moriani, joint secretary (WTO) at Ministry of Commerce, told Arab News in an interview.

She said the government was also developing an international payment gateway that would be integrated with other online payment companies, like PayPal, to facilitate incoming payments.

“At the moment, majority of our exports are reported as remittances as we don’t have an international payment gateway,” she said, adding the system would help freelancers and other businesses to get their payments transferred real-time.

Pakistan’s freelance service providers have huge potential to bring foreign exchange, as with the 47 percent growth rate the country ranks fourth among the world’s fastest-growing freelance markets, and is only behind the US, UK and Brazil.

Moriani said that sales of local and international e-commerce merchants in Pakistan have increased to Rs40.1 billion in 2018 from Rs20.7 billion in 2017.

“These figures do not include all the post-paid cash-on-delivery transactions which account for 60 percent of the total value of e-commerce in Pakistan,” she said.

Although the digital industry is still in the infancy stage in Pakistan, a steady rise in e-commerce transactions and the number of registered e-commerce merchants has been observed. In the first quarter of the financial year 2017-18, the number of registered online merchants was 496. It reached 1,094 by the year’s end, and was around 1,242 in the first quarter of FY2018-19.

Also the number of Pakistan’s Internet banking users has increased from 1.8 million in 2015 to 3.3 million in 2019. The number of m-wallets rose from 15.3 million to 35.7 million, while of mobile banking users from 2.2 million to 5.6 million.

“A digitally connected Pakistan, down to the remotest village, holds the promise for providing sustainable employment for our youth and empowerment for women,” Moriani said, adding that technology helped young entrepreneurs in taking their small businesses to the global market.

In the wake of booming online business opportunities and e-commerce platforms, data protection remains a challenge for the government and customers.

“Once we share our mobile number, email ID and home address with an online portal to purchase something, they no longer remain private and protected,” Saba Hameed, an online shopper, told Arab News.

She said the government should enforce consumer data protection and other digital rights to boost confidence in online business platforms. “Online shopping is easy and hassle-free, but risky at the same time in the absence of relevant laws,” she added.

The Ministry of Information Technology has recently initiated the formulation of Pakistan’s first cloud policy to ensure the privacy and integrity of digital information. The government has also drafted the Data Protection Bill for the purpose, but it has yet to be passed by the parliament.

Mubashir Sargana, an expert in information technology, said that Pakistan would not be able to increase its exports until it has enacted and implemented consumer protection laws, especially on data protection.

“The majority of developed countries don’t allow their enterprises to transact with companies from countries that don’t offer the same level of data protection,” he told Arab News, referring to EU regulations.

He said that data was the “most valuable” resource in the digital economy, therefore it was imperative to have effective protection laws to unleash the true potential of e-commerce.
 

Topics: Pakistan GDP ecommerce

Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

Updated 5 sec ago
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Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

  • Pakistan has struggled to contain militancy in its northwest since a fragile truce with Pakistani Taliban broke down in 2022
  • Islamabad has frequently blamed the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegation
Updated 5 sec ago
KASHIF IMRAN

ISLAMABAD: Pakistan’s army chief, General Asim Munir, on Sunday vowed to hunt down militants waging attacks against security forces and their facilitators, the Pakistani military said, a day after the killing of 16 soldiers in an ambush in the country’s northwest.

Gen. Munir said this during his visit to the South Waziristan district in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, which has been battling a surge in militancy.

The visit came a day after the killing of 16 soldiers and eight militants during a gunfight in South Waziristan after a group of militants ambushed an army outpost in Makeen area.

Interacting with officers and troops, the army chief commended their resilience and steadfastness in the face of militancy, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

“The army chief highlighted that the courage, resilience, and unyielding determination of Pakistan’s armed forces are the cornerstone of the nation’s sovereignty,” the ISPR said in a statement

“COAS reaffirmed Pakistan Army’s commitment to pursuing Fitna Al Khwarij [militants] which shall continue to be hunted down till its elimination along with the facilitator, abettors and financier who will be made to pay the price for their nefarious activities against the state.”

The brazen raid on the outpost near the border with Afghanistan was claimed by the Pakistani Taliban, who said it was staged “in retaliation for the martyrdom of our senior commanders.”

The development came days after the Pakistani military said it had killed 11 militants in separate operations in KP’s Tank, North Waziristan and Mohmand districts.

Pakistan has witnessed a surge in militancy in KP since November 2022, when a fragile truce between the Pakistani Taliban and the government in Islamabad broke down.

Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.

On Saturday, the Pakistani military also 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 militants and a soldier dead a day earlier.

Topics: Pakistan Army COAS General Asim Munir South Waziristan

Pakistan national airline aims to expand its fleet to improve flight operations

Updated 16 min 50 sec ago
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Pakistan national airline aims to expand its fleet to improve flight operations

  • PIA has 23% of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete globally
  • The airline has faced a lack of direct flights, despite having agreements with 87 countries and key landing slots
Updated 16 min 50 sec ago
NAIMAT KHAN

KARACHI: Pakistan International Airlines (PIA) is aiming to expand its fleet to improve flight operations, the national flag carrier said on Sunday, following the addition of another Airbus 320.

PIA has 23 percent of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete with carriers internationally.

The Pakistani airline has been facing a lack of direct flights, despite having agreements with 87 countries and key landing slots.

“The 11th Airbus 320 AP-BOM has been inducted into the operational fleet with new engines. The aircraft was rolled out from the hangar with new paint and cabin decoration,” PIA said in a statement.

“PIA’s operational fleet will also include long-grounded Boeing 777 and ATR aircraft in the next few days.”

The fleet revival will greatly improve the expansion of PIA’s network and product quality, according to the statement. From this week, PIA has also introduced an in-flight Internet system in domestic flights, which is gaining popularity among passengers.

The airline said strict adherence to flight schedules, providing safe and high-quality products to passengers was its top priority.

“PIA’s flight schedule has achieved 90 percent regularity,” PIA Chief Executive Officer Khurram Mushtaq said. “Measures for operational fleet expansion and product improvement are part of our commitment.”

Earlier this month, PIA said it would resume flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier.

PIA’s authorization to operate in the EU was suspended in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority to ensure compliance with international aviation standards.

The ban cost the loss-making airline 40 billion rupees ($144 million) annually in revenue. Pakistan’s attempts to privatize PIA fell flat this year, when it received only a single offer, well below its asking price.

Topics: PIA

Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

Updated 22 December 2024
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Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

  • Clashes between Sunni, Shia tribes have killed over 100 people in Kurram since last month
  • On Friday, authorities set a deadline of Feb. 1 for the warring tribes to surrender weapons
Updated 22 December 2024
REHMAT MEHSUD

PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has launched a helicopter service to evacuate people and transport aid to Kurram district that has been hit by sectarian clashes in recent weeks, officials said on Sunday.

Kurram, a tribal district of around 600,000 near Pakistan’s border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions between Shia and Sunni tribes for decades.

Fresh clashes that erupted last month have killed more than a hundred people, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital of Peshawar.

In response to the problems being faced by residents, the KP administration has been facilitating travel between Parachinar and Peshawar. On Sunday, two flights evacuated 27 individuals as well as carried 16 government staffers and members of a tribal council, which has been striving to achieve peace, to Kurram.

“There is no fare involved in transportation of people or medicines via the helicopter, rather it is a voluntary service by the KP government to meet the emergency situation,” Nisar Muhammad Khan, a KP government official, told Arab News.

The helicopter service was also being used to dispatch medicines to Parachinar. A day ago, 53 individuals, including 14 patients, were shifted to Peshawar from Kurram via helicopter, according to the provincial authorities.

A third flight was scheduled to bring people stranded in the Tal area back to Parachinar, while five more flights were expected to relocate over a hundred people on Sunday, according to the provincial government.

Chief Minister Ali Amin Gandapur’s office said the government had so far dispatched 1,850 kilograms of medical supplies to Kurram, assuring that it would mobilize all resources to ease problems of the people and ensure durable peace in the region.

The development comes days after the KP authorities set a deadline of Feb. 1 for warring Sunni and Shia tribes in the district to surrender all weapons and dismantle their bunkers to stem sectarian clashes in the region.

The decision was made at a meeting of the KP apex committee, which comprises civilian and military officials, to discuss a sustainable solution to the issue. It allowed the launch of a special air service for temporary evacuation from some parts of Kurram to protect people’s lives, according to the apex committee declaration.

“The agreement outlines that both sides will submit a detailed action plan within 15 days for voluntary submission of weapons,” read a declaration issued after the apex committee meeting.

“All weapons are to be deposited with the local administration by February 1. Additionally, it was decided that all bunkers in the area will be dismantled by the same deadline.”

In the meantime, land routes to the area would be opened intermittently on humanitarian grounds and a mechanism was put in place for secure transportation, according to the statement.

“Personnel of police and Frontier Corps will jointly provide security to the convoys,” it read.

Last month’s clashes erupted after rival tribes attacked convoys of passengers on the Parachinar-Peshawar road, which were followed by attacks on each other’s villages.

The apex committee asked both sides to avoid any violent action in the future to keep the land route safe and open at all times, hoping that the parties would fully cooperate with the government for a lasting solution to the issue.

Topics: Pakistan kurram parachinar

Champions Trophy preparations in full swing as Karachi stadium upgradation nears completion

Updated 22 December 2024
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Champions Trophy preparations in full swing as Karachi stadium upgradation nears completion

  • PCB Chairman Mohsin Naqvi says the National Stadium will be ready well before the ICC tournament
  • He says the PCB is improving facilities for Pakistani cricket fans to ensure they have a better experience
Updated 22 December 2024
Arab News Pakistan

ISLAMABAD: Preparations for the ICC Champions Trophy 2025 are progressing rapidly, with the upgradation of Karachi’s National Stadium nearing completion, Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Sunday during a visit to the venue.

The tournament, scheduled for February 2025, has been at the center of controversy following India's reluctance to play in Pakistan due to strained political ties.

The International Cricket Council resolved the impasse by approving a hybrid model, allowing India’s matches to be held at neutral venues while other teams play in Pakistan. The decision ensured India’s participation while retaining Pakistan as the official host.

“Remarkable progress has been made in a very short time,” Naqvi was quoted in a PCB statement. “The upgradation of the National Stadium will be completed well before the Champions Trophy tournament.”

During the visit, Naqvi reviewed ongoing projects, including the installation of new seats in enclosures, enhanced parking facilities for 2,700 vehicles and finishing work on the stadium building.

He also instructed officials to expedite the installation of LED lights and scoreboards.

“We are improving facilities for cricket fans to ensure they have a better experience,” he added.

The PCB is under pressure to ensure the country is ready to host the major ICC tournament.

Security concerns and political tensions had previously kept high-profile international cricket events away, but recent improvements in safety and infrastructure have bolstered Pakistan’s case as a venue.

Praising the rapid progress at the National Stadium, Naqvi lauded the project team for their dedication.

“I congratulate the entire team for their outstanding and swift work,” he said.

The Champions Trophy is seen as a pivotal moment for Pakistan cricket, with the PCB aiming to deliver a world-class tournament to reaffirm the country’s ability to host international events successfully.

Topics: Champions Trophy 2025 Karachi stadium Pakistan Cricket ICC Arab News Pakistan

Students in Pakistan’s north embark on over 150-kilometer march for road safety awareness

Updated 22 December 2024
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Students in Pakistan’s north embark on over 150-kilometer march for road safety awareness

  • The marchers aim to press the government to built tunnels on 167-kilometer Juglot-Skardu Road to avoid accidents, blockades
  • They say the original construction plan of JSR included five tunnels, but not a single one was constructed by authorities
Updated 22 December 2024
Nisar Ali

KHAPLU, Gilgit-Baltistan: A group of students on Saturday embarked on a more than 150-kilometer march from Pakistan’s northern Gilgit district to Skardu, aiming to raise awareness about road safety.

The marchers called for making the 167-km single-carriage Juglot-Skardu Road (JSR), which connects the Gilgit division with Skardu district in the Baltistan division, safer for travelers by building tunnels at various locations prone to landslides in the mountainous region.

Skardu is a major tourism, trekking and mountaineering hub in Pakistan’s northern Gilgit-Baltistan region and home to Askole and Hushe villages, often referred to as gateways to snow-capped peaks, including K2, the Gasherbrums and Broad Peak, as well as the Baltoro, Biafo and Trango glaciers.

“We are marching just with a single agenda and our slogan is: ‘Build tunnels, save lives,’” Shehbaz Shareef, a member of the Baltistan Students Federation (BSF), told Arab News.

“We have organized this walk to raise awareness about the need for safer and reliable routes between Skardu and other parts of the country.”

The image circulating on social media on December 21, 2024, shows a group of students marching for road safety awareness in the Pakistan's northern Baltistan region. (Hassnain Abbas Khan Tayis/Facebook)

Shareef said the original construction plan for JSR included five tunnels, but none were built.

“This route has been constructed by FWO [Frontier Works Organization],” he added. “However, the tunnels were not built, and this road has become more dangerous.”

Arab News contacted FWO, a construction and engineering organization managed by the Pakistan Army, for its version. However, it was referred to the local chapter of the military’s media wing, Inter-Services Public Relations, which did not respond to the query until the filing of this report.

The Awami Action Committee (AAC), a civic rights body in the region, announced its support for the march.

“We are very thankful to the BSF who are raising a very important issue. They are demanding the government to make this road safer through this march because this road is the only land route to the Baltistan division,” Najaf Ali, chairman of the AAC Baltistan chapter, told Arab News.

“It has become a well of death. Accidents are common on this road, and it has devoured many precious lives. A few days ago, five people were killed after a landslide buried their car. We have grown tired of lifting bodies due to accidents.”

Ali urged the government to build the requisite tunnels on the road.

“This is a matter of life and death, so we are with the students, and we will warmly receive them in Skardu,” he said. “Additionally, we also held a meeting with trade bodies and decided to launch a big drive to press the government to make this road safe.”

Mesam Kazim, opposition leader in the Gilgit-Baltistan Assembly, said they would do their utmost to press the government for the construction of tunnels on JSR.

“In 2022, we adopted a unanimous resolution demanding the federal government to order the construction of tunnels on the Gilgit-Skardu road to avoid frequent blockades of the artery due to landslides,” Kazim said.

“In the initial PC-1 [survey] uploaded by NHA [National Highway Authority], the construction of tunnels was part of the plan. Tunnels have been missed, and international standards [of construction] have been violated by FWO on JSR.”

He lamented that there were no parking lots, safety barriers, or speed limit boards on the road, and more than 100 people had lost their lives in accidents on JSR over the last few years.

“Who is responsible for these casualties?” Kazim questioned.

Topics: Juglot-Skardu Road

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