KARACHI: An Islamabad-based fintech firm is all set to launch Pakistan’s first financial super app by the end of the month that will help the country’s population open digital accounts and enjoy cross-border payment facility, the company’s top official said on Friday.
“We are planning to launch Pakistan’s first financial super app by the end of June,” Talal Ahmed Gondal, cofounder and chief executive officer of TAG Innovation, said while talking to Arab News. “Our intention is to target women and youth in the first marketing phase who don’t have access to formal bank accounts.”
“In the next stage, TAG plans to launch Pakistan’s first digital bank,” he continued, adding that his organization would operate as an electronic money institution (EMI) for now and offer relevant services to the intended target market.
“The app will enable users to open digital accounts within three minutes,” Gondal explained. “The users will then be able to make peer-to-peer transfers, dispatch money to bank accounts, pay utility bills and recharge their mobile credit. Their phone number will also be their account number.”
The fintech startup has been authorized by the State Bank of Pakistan to operate as an EMI and is launching its pilot phase.
TAG recently closed $5.5 million in a pre-seed round led by venture capitals from the United States, including Quiet Capital Management and Liberty City Ventures. Other participants were Fatima Gobi Ventures, Unpopular Ventures as well as strategic investors like Visa and Angels Investors, the TAG chief informed.
The funding round makes it the largest ever pre-seed in the Middle East, North Africa and Pakistan region. The position was previously held by an Egyptian fintech, Telda, which raised $5 million, according to the data compiled by various venture capital institutions.
Gondal said Pakistan was among the difficult markets for funding since the economic ecosystem was still not mature for the purpose.
“In the US, it would have taken us a maximum of five weeks, but it took us five months here to generate the funding,” he said, though he also recognized that Pakistani market was still untapped with a huge potential.
The TAG chief said his company would utilize the funding for its commercial launch and to expand its outreach in the Middle East to facilitate remittance inflows and cross-border payments.
“We will Initially launch our services in Pakistan but offer them in the Middle East by the end of the year,” he said, adding that TAG wanted to begin the process from Saudi Arabia by hiring a local team since that was where “the highest number of expat Pakistanis live.”
“The funds will be transferred between Saudi and Pakistani TAG accounts within a minute at a very low rate,” he continued while pointing out that the facility would be offered with the help of Saudi banks.
Gondal said that large number of women and youth, particularly students, did not have access to formal banking channels.
“Existing players are mainly targeting lower income segments, but we will offer services to all income groups as the first B2C operator across Pakistan,” he said, adding: “The farming community will also be tapped to receive or make payments for wheats or subsidies.”
According to the World Bank, Pakistan has the third largest unbanked adult population in the world with about 100 million people without their own accounts.
“There are 60 million total bank accounts in Pakistan out of which unique accounts are estimated at 20 million,” Muhammad Sohail, chief executive officer of Topline Securities, said. “About 70 percent of Pakistan’s adult population lacks access to bank accounts.”
According to Pakistan’s central bank, the country has a low volume of electronic transactions due to low banking penetration, lack of trust and awareness related to digital payment methods, limited interoperability and high cost of transactions.
Fintech firm to launch Pakistan's first financial 'super app,' plans expansion to Middle East
https://arab.news/r2c3s
Fintech firm to launch Pakistan's first financial 'super app,' plans expansion to Middle East
- TAG Innovation plans to launch the country’s first digital retail bank after functioning as an electronic money institution for a substantial period
- The company also intends to offer its services to Pakistan’s largest diaspora community in Saudi Arabia by the end of the year to facilitate foreign remittances
Pakistan PM urges efforts for economic, political stability as opposition plans anti-government protest
- Pakistan Tehreek-e-Insaf has announced it will lead ‘long march’ to Islamabad on Sunday
- PM says all parties have to decide whether to hold protests or work for economic progress
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday called for prioritizing economic and political stability over “sit-ins and long marches,” in a veiled reference to the opposition Pakistan Tehreek-e-Insaf (PTI) party, which has announced it will hold an anti-government protest in Islamabad on Nov. 24.
PTI announced last week it would lead a ‘long march’ to the capital on Sunday over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners, including jailed founder ex-Prime Minister Imran Khan, and in support of the independence of the judiciary. Recent protests by the party have seen clashes between police and supporters and led to the government shutting down cities and main highways to keep crowds from gathering. The government also imposed a two-month ban on public gatherings in Islamabad on Monday.
The PTI, arguably the country’s most popular party, has a history of drawing huge crowds to rallies.
“The country’s progress and prosperity, stability of economy, and political stability are interlinked with each other, and without it no society can move ahead,” Sharif said as he addressed the National Action Plan’s apex committee meeting in Islamabad, attended by his cabinet, provincial chief ministers and the three armed services chiefs.
“It is imperative for progress and prosperity that there needs to be economic and political stability, and you all have to play a role for it,” he said. “We have to decide whether to hold dharnas, long marches, or work for the progress and prosperity [of the country]. It is all up to us.”
The meeting had been called to discuss a rise in militant attacks in recent months, particularly in Pakistan’s northwestern Khyber Pakhtunkhwa and southwestern Balochistan provinces. Attacks in KP are mostly claimed by Tehreek-e Taliban Pakistan (TTP) militants while Balochistan has been plagued by a worsening separatist insurgency by ethnic militants.
“If we want to advance national development, national unity, political unity, then it is connected to the elimination of terrorism, without it, nothing will advance. I think that this is the biggest challenge of Pakistan today,” Sharif said.
“So for me, as the head of this country, for you [army chief], as the head of the army, we have no choice but to first crush terrorism. After that, it is about economy, it is about production, employment and prosperity.”
Analysts say the government is lacking a “holistic approach” to address rising ethnic militancy and political violence in the country and achieve economic stability.
“Amid political polarization, ethnic militancy in KP and Balochistan provinces is emerging as a new challenge for Pakistan that needs to be addressed through a comprehensive approach and with the support of all segments of the society,” Dr. Qamar Cheema, executive-director at Sanober Institute in Islamabad, told Arab News.
Tahir Malik, a political analyst and professor at the National University of Modern Languages in Islamabad, said the government should open dialogue with the PTI to find a political solution to all problems,
“The prime minister should walk the talk to achieve political and economic stability by engaging the opposition in constructive dialogue ahead of the planned PTI protest,” Malik said.
Seven cops abducted by armed gunmen in northwest Pakistan released — police
- Policemen were abducted by dozens of armed gunmen from Bannu district on Monday, police said
- Over 82 policemen have been killed in attacks, ambushes, targeted killings in northwest this year
PESHAWAR: Seven policemen abducted from a check post on Monday in northwest Pakistan have been recovered through the efforts of local tribal elders and a massive search operation by police in the unforgiving mountainous terrain, officials said on Tuesday.
Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has seen a rise 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.
Over 82 policemen have been killed in attacks, ambushes and targeted killings in KP this year, according to official data.
Speaking to Arab News on Tuesday, Ziauddin Ahmed, the District Police Officer (DPO) for Bannu district where the abduction happened, said all seven abductees had been released and were in police custody.
“Police carried out a search operation to locate the abducted officials but their release was secured following hectic efforts by local elders,” Ahmed said, without giving more details of the rescue operation.
No group has as yet claimed responsibility for the kidnapping.
Noorzad Khan, a police officer in Bannu, said dozens of well-armed militants on Monday forced their way inside the Rocha check post in the jurisdiction of Utmanzi police station, a region on the edge with the restive North Waziristan tribal district, long a haven for Taliban and other militants.
The gunmen were able to get away with all the weapons and equipment at the checkpoint.
“The attackers besieged the check post and then held the policemen hostage at gunpoint,” Khan said, confirming the return of the seven officers.
The TTP 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.
IDEAS 2024: Haider tank in spotlight on first day of Pakistani mega defense expo
- IDEAS has been held biennially since 2000 and has since grown into a key event for the Pakistani defense sector
- Second day of the exhibition, Wednesday, will see launch of new medium-altitude long-endurance Shahpar III drone
KARACHI: The third-generation Haider tank was in the spotlight on Tuesday as Pakistan’s premier defense exhibition, IDEAS, kicked off in Karachi, hosting 550 exhibitors, including 340 international defense companies, as well as 350 civilian and military officials from 55 countries.
IDEAS has been held biennially since 2000 and has since grown into a key event for the Pakistani defense sector.
This year’s exhibition, running from Nov. 19-22 at the Karachi Expo Center, is showcasing a wide range of modern and traditional defense equipment, weapons systems and vehicles.
“This tank is locally produced in Pakistan at the Heavy Industry Taxila in collaboration with our local and international technology partners,” Anza Aqeel, Assistant Director Heavy Industry Taxila, told Arab News, explaining that Haider had auto-tracking, a remote-control weapon system and a 470-kilometer cruising range.
“It has the capability of firing in both the day and night. It can fire up to eight rounds per minute due to its autoloading capability.”
Aqeel said the Haider tank was of export quality, with production currently underway.
“This tank has an auto tracker installed and both the gunner and commander can fire using the auto tracker,” he added.
The second day of the exhibition, Wednesday, will see the launch of the Shahpar-III drone, the third generation of the GIDS Shahpar unmanned aerial vehicle (UAV) built by Global Industrial Defense Solutions of Pakistan and used by the Pakistani military.
Speaking at the inauguration ceremony, Defense Minister Khawaja Muhammad Asif said Pakistan’s volume of defense exports was not yet aligned with its potential.
“Though Pakistan is now exporting some high-tech products to more than 60 countries, the volume of exports is not at par with its actual potential,” Asif said.
“A crucial factor, however, has been the limited involvement of the private sector in defense production and activity.”
“In order to achieve this objective, I will stress upon the integration of public and private defense industry to achieve maximum results,” Asif added. “New ideas, entrepreneurship and management skills mastered by the private sector need to be co-opted with the public sector defense industry.”
This year’s event also features a “Startups Pavilion” designed to offer international exposure to young Pakistani entrepreneurs and give them an opportunity to showcase new projects and technologies.
Pakistani police arrest man accused of insulting Qur’an, save him from being lynched by mob
- Khan said man allegedly made derogatory remarks about Qur’an during heated argument with brother
- Demonstrators threw stones at police station, threatened to burn it if the man was not handed over to them
PESHAWAR: Police arrested a man accused of insulting Islam’s holy book, the Qur’an, in northwestern Pakistan on Tuesday after being alerted that a mob wanted to lynch him, police said.
The man, identified as Humayun Ullah, was arrested in Khazana, an area on the outskirts of Peshawar, the capital of Khyber Pakhtunkhwa province, police officer Nasir Khan said.
He said the man was arrested as a mob was trying to grab him in a street.
Video posted on social media showed hundreds of people blocking a road near a police station and demanding the man be handed over to them. Gunshots were also heard near the police station, where the man was being held for questioning.
Khan said the man allegedly made derogatory remarks about the Qur’an during a heated argument with his brother at the family’s home. He said some of the demonstrators threw stones at the police station and threatened to burn it and harm officers if the man was not handed over to them.
Under Pakistan’s blasphemy laws, anyone found guilty of insulting Islam or Islamic religious figures can be sentenced to death — though authorities have yet to carry out a death sentences for blasphemy.
The arrest Tuesday came two months after the government said police had orchestrated the killing of a doctor who was in custody after being accused of blasphemy in southern Sindh province. The doctor had voluntarily surrendered following assurances from officers that he would be given a chance to prove his innocence.
In November 2021, a mob burned a police station and four police posts in northwestern Charsadda district after officers refused to hand over a mentally unstable man accused of desecrating the Qur’an.
Supreme Court dismisses petition challenging extension in tenure of army chief
- Pakistan earlier this month passed bills to extend the tenures of heads of the armed forces to five years from three
- Rights advocates say measures by PM Sharif’s coalition could be aimed at shoring up support from powerful military figures
ISLAMABAD: The Constitutional Bench of the Pakistan Supreme Court on Tuesday dismissed a petition challenging the extension of the tenure of Army Chief Gen. Asim Munir, state news agency APP said.
Pakistan’s parliament earlier this month passed bills to extend the terms of the heads of the armed forces to five years from three, a move that has been opposed by rights activists as well as the opposition Pakistan Tehreek-e-Insaf (PTI) party of jailed ex-Prime Minister Imran Khan.
The PTI believes extending the term of commanders including the army chief would deal another blow to the embattled Khan and his party, which blames the military for his downfall. The army denies involvement.
“The petition was dismissed after the petitioner Mahmood Akhtar Naqvi failed to appear before the court and defend his argument in spite of repeated notices,” APP said. “Also, the new legislation fixing the tenure of all three service chiefs paved the way for the dismissal of the petition.”
The office of the army chief is considered to be the most powerful in the country, with the military having ruled Pakistan for almost half of its 75-year history. Even when not directly in power, the army is considered to be the invisible guiding hand in politics and holds considerable sway in internal security, foreign policy, and economic affairs, among other domains.
The coalition government led by Prime Minister Shehbaz Sharif has defended the passage of the new bills that extend the tenures of the army, navy and air force chiefs, saying the move would check against services chiefs granting themselves extensions and “formalize” the duration of their service. The government says the bills are aimed at building continuity and avoiding the political turmoil that usually surrounds the appointment of the army chief every three years.
Rights activists and democracy advocates say the measures by the Sharif-led coalition, which is opposed to Khan and took power after an election in February, could be aimed at shoring up support from powerful military figures.
Under the new law, Gen.l Munir, who took office in November 2022 with a timeline to retire in 2025, will serve until 2027 irrespective of a retirement age of 64 for a general.
Khan, who has been in jail since August last year, has been at odds with generals he blames for his 2022 ousting, after he fell out with then-army chief Qamar Javed Bajwa. The military denies it interferes in politics.
Khan’s party-backed candidates won the most seats in February’s election but fell short of a majority, clearing the way for his opponents led by Sharif to form a government.
Khan’s supporters have since been agitating in parliament and on the streets, alleging that the election was rigged to keep them out of power, which the election commission denies. The PTI says the ruling alliance does not enjoy legitimacy, an accusation the government rejects.
The passage of the new bills on extension in service tenure follows controversial amendments made to the constitution last month, granting lawmakers the authority to nominate the chief justice of Pakistan, who previously used to be automatically appointed according to the principle of seniority.
The amendments allowed the government to bypass the senior-most judge of the Supreme Court, Justice Mansoor Ali Shah, and appoint Justice Yahya Afridi as the country’s top judge.
The opposition and the legal fraternity have opposed the amendments, arguing that they are aimed at granting more power to the executive in making judicial appointments and curtailing the independence of the judiciary. The government denies this.
