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

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.
 


No official word from India it will participate in Champions Trophy in Pakistan — PCB

Updated 38 min 56 sec ago
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No official word from India it will participate in Champions Trophy in Pakistan — PCB

  • Mohsin Naqvi’s statement comes amid Indian media reports their team may not play the tournament
  • PCB chief maintains sports should be free from politics, says Pakistan’s preparations are continuing

ISLAMABAD: Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Friday there has been no official communication from Indian cricket authorities regarding their national team’s participation in the International Cricket Council’s (ICC) Champions Trophy scheduled to take place in Pakistan next year, despite recent reports in the Indian media suggesting otherwise.
Political tensions between India and Pakistan mean the two South Asian rivals only face each other at international tournaments. The Indian team last visited Pakistan in 2008 for the 50-over Asia Cup.
India’s refusal to play on Pakistani soil since then forced the PCB to settle for a “hybrid model” during last year’s Asia Cup, in which only four of the 13 matches were held in Pakistan, with the remaining nine played in Sri Lanka.
“For the past two months, there have been reports in Indian media that the Indian team is not coming [to Pakistan for the ICC Champions Trophy],” Naqvi said during a news conference in Lahore.
“As far as what Indian media is reporting, if the Indian media is reporting this, then with that there must also be a letter that the ICC will give us [Pakistan] or the Indian [cricket] board must have announced [this decision] somewhere,” he continued. “So far, no such letter has reached me or the PCB.”
The ICC Champions Trophy, set to take place from February 19 to March 9, 2025, marks Pakistan’s first time hosting this prestigious tournament. The PCB has been preparing extensively, investing in stadium upgrades and infrastructure improvements to meet international standards.
Naqvi emphasized the need to keep sports free from political influence, adding the preparations for the Champions Trophy would continue as planned with hopes for a successful event.
The ICC has previously expressed satisfaction with Pakistan’s preparations, signaling that the tournament remains on track.
The PCB chief said during his media talk he was in contact with the cricket authorities in other countries, saying they were all excited about the upcoming event and wanted to play the tournament in Pakistan.


Pakistan, UAE sign agreements in customs, rail, airport infrastructure, maritime sectors

Updated 08 November 2024
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Pakistan, UAE sign agreements in customs, rail, airport infrastructure, maritime sectors

  • UAE minister of state for foreign trade calls on Pakistani PM Sharif
  • In May, Pakistan said UAE had committed $10 billion in investments

ISLAMABAD: Pakistan and the UAE on Friday signed four MoUs in the sectors of customs, rail and airport infrastructure, maritime shipping and logistics, Prime Minister Shehbaz Sharif’s office in Islamabad said in a statement.
The MoUs were signed between the Pakistani ministries of maritime affairs, aviation and railways and the Federal Board of Revenue with the Abu Dhabi (AD) Ports Group.
“As per these MoUs, Pakistan and AD Ports Group would explore potential collaboration in customs, rail, airport infrastructure and maritime shipping and logistics sectors,” the PM’s office said after Sharif met a delegation of UAE investors led by Dr. Thani bin Ahmed Al Zeyoudi, UAE minister of state for foreign trade.
“These MoUs are aimed at improving digital customs controls, developing dedicated freight rail corridors, upgrading Pakistan’s maritime fleet and marine services, as well as Pakistan’s international airports.”
Sharif said the delegation’s visit demonstrated that the UAE government wanted to enhance its “investment footprint” in Pakistan and continue to play a “crucial role” in boosting Pakistan’s economy.
“The Prime Minister highlighted the comprehensive economic partnership between the two nations across sectors such as trade, energy, and investment, which has contributed to growth and prosperity in both countries.”
The UAE delegation’s visit to Pakistan comes as Islamabad is seeking to strengthen trade and investment ties with friendly nations. 
In May this, Pakistan said the UAE had committed $10 billion to invest in promising economic sectors in Pakistan.
Riyadh has also promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis. Pakistan and Saudi Arabia also signed 34 MoUs worth $2.8 billion last month.


UN rights body urges Pakistan to end military trials of civilians, release them on bail

Updated 08 November 2024
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UN rights body urges Pakistan to end military trials of civilians, release them on bail

  • The UN body asks the government to release all civilians detained under the jurisdiction of military courts
  • It expressed concern over ‘increasing trend of enforced disappearances,’ as well as torture, other rights issues

ISLAMABAD: The United Nations Human Rights Committee on Thursday expressed concerns over Pakistan’s use of military courts to prosecute civilians, calling for immediate reforms to safeguard due process and fair trial standards in the country.
The committee, an expert body established under the International Covenant on Civil and Political Rights, one of the core international human rights treaties, primarily monitors its implementation by member states.
Pakistan first expanded military courts’ jurisdiction in recent years to include civilians in terrorism-related cases and lifted its moratorium on the death penalty following the killings of over 100 school children in an attack in Peshawar carried out by militants in 2014.
It has also tried supporters of former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) in these courts following the May 9, 2023, riots, in which people carrying PTI flags targeted government buildings and military installations after the ex-premier was briefly detained on corruption charges.
“The Committee remains concerned about the use of the Pakistan Army Act 1952 to prosecute civilians in military courts,” said the review document prepared by the UN body. “It is also concerned about reports that indicate a very high rate of convictions handed down by military courts and that those convicted have been sentenced to death in the majority of cases between 2015 and 2019.”
“It is further concerned that military courts lack independence and that civilians tried in military courts do not benefit from the same due process guarantees as those provided for in the civilian judicial system,” it added.
The UN body noted that Pakistan’s Supreme Court had declared the military trial of civilians unconstitutional and contrary to international human rights standards last year in October, though it added that the ruling was suspended, and expressed concern that civilians could remain under military court jurisdiction until the top court issues a final verdict.
“The State party should take prompt measures to review the legislation on military courts, abrogate their jurisdiction over civilians and their authority to impose the death penalty, and bring their proceedings into full conformity with articles 14 and 15 of the Covenant in order to ensure a fair trial,” the document said. “The State party should also release on bail all civilians detained under the jurisdiction of military courts.”
Additionally, the UN body raised broader human rights concerns in the country, noting “the increasing trend of enforced disappearances,” as well as torture and extrajudicial executions.
It particularly mentioned “arbitrary restrictions, in law and in practice, on freedom of expression online and offline, including the broad and alarmingly frequent use of Internet shutdowns,” pointing out that the overall environment in the country makes it difficult to exercise freedom of expression by journalists, activists and human rights defenders.
The UN rights body’s findings and recommendations are not legally binding on member states. However, they carry significant weight and can be used to inform advocacy efforts and to apply diplomatic pressure on countries to adhere to human rights obligations.


Pakistan says operation launched in southwest against separatists behind August assault

Updated 10 min 35 sec ago
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Pakistan says operation launched in southwest against separatists behind August assault

  • Outlawed BLA claimed responsibility for string of coordinated attacks on Aug 25-26 in which over 50 people killed
  • Former separatist who recently surrendered to authorities addresses press conference but unclear if spoke freely

ISLAMABAD: Pakistan has launched an armed operation in its southwestern Balochistan province against separatist militants who were behind multiple attacks in August in which more than 50 people, civilians and security officials, were killed, a senior counterterrorism officer said on Friday.
The outlawed Balochistan Liberation Army group claimed responsibility for the attacks, most of which occurred on the night of Aug. 25-26 and indicated that the BLA, which has targeted security forces for years in small-scale attacks and is allied with the Pakistani Taliban (TTP), is now much more organized.
Speaking to media on Friday, Counterterrorism Department DIG Aitzaz Ahmed Goraya said two militants had been arrested and three killed in an operation over the weekend in connection with investigations into the August attacks. The two arrested militants had provided, among other leads, information on how the attacks were planned and carried out, where the funding came from, who the local facilitators of the insurgents were and where their hideouts in the mountains of Balochistan were located, Goraya said. 
“Now as I speak to you, based on the information, an operation has been launched since the last two days in Duki, Loralai and surrounding districts in which Frontier Corps, CTD, Levies, police and others are taking part,” the CTD official told reporters. 
The press conference was also addressed by a Baloch man who identified himself as Talal Aziz and said he had surrendered to authorities after a brief stint as a separatist. 
He did not specify when he had turned himself in and it was unclear under what circumstances he addressed the press conference and whether he spoke freely or under pressure from state authorities in Balochistan, a resource-rich but impoverished province where separatist militants have been fighting a decades-long insurgency to win secession of the region. Insurgents say they are fighting what they see as the unfair exploitation of the province’s mineral and gas wealth by the federation at the center. 
The Pakistani government and military deny they are exploiting Balochistan and have long maintained that neighbors such as India, Afghanistan and Iran foment trouble in the remote province and support and fund the insurgency there. 
Pakistan’s largest province, Balochistan borders Iran and Afghanistan and is home to major China-led projects such as a strategic port and a gold and copper mine. 
Speaking to media, Aziz said he had studied in Quetta and Sibi before getting a scholarship to pursue higher education at the Punjab University in the eastern city of Lahore, where he met some students from Balochistan.
“They convinced me to take up arms for the independence of Balochistan,” Aziz said, saying that later, when he went back to Balochistan during university holidays, some friends pushed him to attend a protest by the Baloch Yakjehti Committee (BYC) where he was introduced to some dissidents. 
The group says it is a human and ethnic rights movement established in response to alleged state human rights abuses in Balochistan but Pakistan’s government and army have repeatedly called it a “terrorist proxy.”
Aziz said after the BYC sit-in, he became convinced to join militants at their mountain hideouts where he claimed he met many other educated, young people like himself who had been similarly “brainwashed.” There, Aziz said he learnt that the purpose of the Baloch militants was to plot the killings of ethnic Punjabis in Balochistan, who they consider outsiders, and he soon realized that he did not want to be part of any such agenda. He then ran away and surrendered to the authorities.
“These terrorists only wanted to lead Baloch people astray and try to break up Pakistan,” Aziz concluded. 
The rise of separatist attacks in bBalochistan poses a major challenge for the weak coalition government of Prime Minister Shehbaz Sharif, which is battling an economic crisis and political instability as well as a rise in militant violence by both religiously motivated and separatist groups across the country. 
Balochistan is also currently in the grips of civil rights protests by young ethnic Baloch who are calling for an end to what they describe as a pattern of enforced disappearances and other human rights abuses by security forces, who deny the charge.


Pakistan eyes $25 billion IT exports in three years, 5G rollout despite roadblocks 

Updated 08 November 2024
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Pakistan eyes $25 billion IT exports in three years, 5G rollout despite roadblocks 

  • Pakistan’s IT exports face significant challenges due to Internet connectivity issues stemming from firewall installations to regulate content
  • In August, the Pakistan Software Houses Association said the country’s economy could lose up to $300 million due to Internet disruptions

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday reaffirmed Pakistan’s ambitions to boost its information technology (IT) exports to $25 billion in the next three years and to roll out 5G Internet services, despite challenges from firewall installations.
The Pakistan prime minister expressed these plans during his meeting with a delegation of VEON, an Amsterdam-based multinational telecommunication and digital services company, led by its chairman Augie K. Fabela, to discuss his government’s efforts to “develop and promote” the telecommunications sector, according to Sharif’s office.
The South Asian country’s IT exports face significant challenges due to Internet connectivity issues stemming from firewall installations to regulate content and social media platforms that hinder the ability of local tech firms to communicate with international clients. This results in delayed deliveries, loss of business opportunities and a tarnished reputation for Pakistan’s IT industry, ultimately stifling growth and costing millions of rupees in losses.
In August, the Pakistan Software Houses Association (P@SHA) said the country’s economy could lose up to $300 million due to Internet disruptions caused by the imposition of the firewall. However, State Minister for IT Shaza Khawaja repeatedly denied the use of firewalls by the government as a form of censorship.
“We are determined to achieve the target of increasing IT exports from Pakistan to 25 billion dollars in the next three years,” Sharif was quoted as saying by his office. “Steps are being taken to introduce 5G Internet services for faster and reliable Internet services in Pakistan.”
Sharif said the rollout of 5G services would make it possible for his government to achieve the vision of “Digital Pakistan.” He said the telecommunications sector would play an important role in promoting a cashless and digital economy, praising the work of a VEON subsidiary, Jazz Group, and expressing his government’s willingness to promote IT, digitization and artificial intelligence (AI) in Pakistan.
The visiting delegation appreciated the Pakistani government’s efforts to stabilize the economy and termed Pakistan an important country for investment in the IT sector, according to Sharif’s office.
Pakistan recorded $298 million in IT exports in June, up 33 percent from the year before. During the fiscal year that ended in June, Pakistan recorded overall IT exports of $3.2 billion, up 24 percent from $2.5 billion in the previous year.
The South Asian nation has lately encouraged its IT sector and facilitated collaborations with firms in several countries, including Saudi Arabia, China and Qatar, to boost its IT exports.
However, IT-related associations and businesses this year raised alarm over slowing Internet speeds as the federal government moved to implement the nationwide firewall to block malicious content, protect government networks from attacks, and allow authorities to identify addresses associated with what it calls “anti-state propaganda.”
In August, the Pakistan Business Council warned that frequent Internet disruptions and low speeds caused by poor implementation of the firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.”