KARACHI: Venture capitalists injected more than $85 million in Pakistani startups in the first five months of 2021, with fintech companies riding a wave of interest by overseas investors, according to data from Invest2Innovate Ventures (I2I), which supports early-stage enterprises in untapped developing markets.
Pakistani Internet platforms engaged in finance and business, or fintech companies, fetched about $22 million, mostly in foreign funding, since January 2021, according to Alpha Beta Core, a tech-driven boutique investment banking and financial advisory services platform.
It includes recent deals by TAG Innovation, KTrade and Abhi, which raised $12.1 million in separate rounds.
Industry experts said that Pakistan’s increasing mobile phone penetration and growing young population are major attractions for foreign funding in startups.
Official data shows Pakistan has 85 percent teledensity, with 183 million cellular, 98 million 3G/4G and 101 million broadband subscribers.
The decrease in global air travel during the coronavirus pandemic has also provided an unexpected advantage for startups in Pakistan, cutting out the requirement that investors visit the country as part of the due diligence process, and making them more open to discussing deals remotely over Zoom or other video conferencing platforms.
Syed Amin Ul Haque, federal minister for IT, told Arab News that fintechs were “gaining traction” in Pakistan due to government measures to create an “enabling environment,” including increasing broadband connectivity and reducing taxes on telecoms.
“IT enabling environment has been created in Pakistan through policy measures,” Haque said.
“Withholding tax was 12.5 percent and now it has been approved by the cabinet to bring it down to 10 percent. Federal excise duty on SIM cards was 17 percent, and now we have reduced it to 16 percent.
“All these measures will be part of the financial bill in the upcoming budget, to be implemented from July.”
During the last 10 months of the current fiscal year, IT exports had also increased by 46 percent, the minister said.
Kalsoom Lakhani, founder and partner at I2I, told Arab News that data collected by her firm showed that Pakistani startups had already raised close to $85 million in funding.
“This means that we have already surpassed the total amount, $65.6 million raised in 2020, by the middle of the year,” she said.
“Most of the funding has been made in e-commerce, but a high number of deals in fintech, mainly pre-seed and seed, were made.”
Khurram Schehzad, CEO of Alpha Beta Core, said that the growth of fintech in Pakistan was due to a realization that the country’s growing retail, wholesale and trade sectors required a better financial ecosystem.
“Pakistan is a highly under-tapped market as far as financial inclusion goes — just under 25 percent of the population use banks, while mostly cash is used for payments,” Schehzad told Arab News.
“There is a massive retail, wholesale and trade sector that needs a financial ecosystem with ease and comfort. With all these points, and a large middle class and tech-savvy population and youngsters, there is a need for solutions at various stages of the financial ecosystem.”
TAG, Pakistan’s first digital financial super app, last week announced that it had closed $5.5 million in a pre-seed round led by Venture Capitals Quiet Capital management and Liberty City Ventures from the US, and Fatima Gobi Ventures.
The funding round is the largest ever pre-seed in the Middle East, North Africa and Pakistan region.
“The funds will be utilized to give access to Pakistan’s large unbanked population through digital accounts,” TAG co-founder and CEO Talal Ahmed Gondal told Arab News.
Ali Farid Khwaja, chairman of Karachi-based stock brokerage KASB Securities, which owns and operates stock trading app KTrade, said that the company wanted to “target 10 million mobile phone users to invest in Pakistani stocks within the next four years.”
“We will be spending money to educate people how to become partners in the country’s corporations and connecting them with financial markets,” he said.
The KTrade app, which launched in 2019 and allowed investors to trade in equities in the Pakistan Stock Exchange, raised $4.5 million in a funding round spearheaded by Hong Kong-based investment firm TTB Partners and New York-based VC HOF Capital.
German investor Christian Angermayer also took part in the round, according to a statement issued on Monday.
Another Pakistani fintech, Abhi, a Karachi-based salary advance platform, this week raised $2 million in a seed round led by Vostok Emerging Finance. Village Global, a US-based venture capital firm focused on early-stage startups, also took part in the round, marking its first fintech investment in Pakistan.
Other participants in the round included Sarmayacar, I2I, Zayn Capital and Portman Wills, the co-founder of Wagestream, a London-headquartered financial wellness platform.
Abhi, to be launched in July this year, will provide employees with salary advances based on accrued wages.
“We have been working on this idea for the past three years, and our core point was financial inclusion,” Omair Ansari, co-founder of Abhi, told Arab News.
“We want to address pain points in the manual payments process and allow employees to access their salary in advance when they need it.”
The startup is now conducting a three-month pilot run involving 20 companies from the pharmaceutical, textile and retail sectors.
Ansari believes that the Pakistani startup market is increasingly on the radar of global venture capitalists and “looking much better now.”
He plans to tap into the improving conditions to expand in Pakistan and then take his venture abroad.
“After focusing first on Pakistan, we plan to expand to Bangladesh, Sri Lanka, the UAE and Saudi Arabia,” Ansari said.
“Overseas operations are expected to commence within the next two years.”
Pakistani startups raise $85m amid rush of foreign funding in fintech
https://arab.news/8egk3
Pakistani startups raise $85m amid rush of foreign funding in fintech
- Internet finance platforms fetched about $22m mainly from abroad since January
- Abhi, to be launched in July this year, will provide employees with salary advances based on accrued wages
Visibility drops in parts of Delhi as pollution surges
- “Low visibility procedures” were initiated at the city’s Indira Gandhi International Airport, operator Delhi International Airport Limited said in a post on social media platform X
NEW DELHI: A toxic haze enveloped India’s national capital on Wednesday morning as temperatures dropped and pollution surged, reducing visibility in some parts and prompting a warning from airport authorities that flights may be affected.
Delhi overtook Pakistan’s Lahore as the world’s most polluted city in Swiss group IQAir’s live rankings, with an air quality index (AQI) score of more than 1,000, considered “hazardous,” but India’s pollution authority said the AQI was around 350.
Officials were not immediately available to explain the variation.
The India Meteorological Department (IMD) said the pollution had reduced visibility to 100 meters (328 feet) in some places by around 8 a.m. (0230 GMT).
“Low visibility procedures” were initiated at the city’s Indira Gandhi International Airport, operator Delhi International Airport Limited said in a post on social media platform X.
“While landing and takeoffs continue at Delhi Airport, flights that are not CAT III compliant may get affected,” the authority said.
CAT III is a navigation system that enables aircraft to land even when visibility is low.
The IMD said the city’s temperature dropped to 17 degrees Celsius (63 degrees Fahrenheit) on Wednesday morning from 17.9C on Tuesday, and may fall further as sunlight remains cut off due to the smog.
Delhi battles severe pollution every winter as cold, heavy air traps dust, emissions, and smoke from farm fires set off illegally in the adjoining, farming states of Punjab and Haryana.
Previously, authorities have closed schools, placed restrictions on private vehicles, and stopped some building work to curb the problem.
The city’s environment minister said last week that the government was keen to use artificial rain to cut the smog.
Pakistan’s Punjab province, which shares a border with India, has also banned outdoor activities, closed schools, and ordered shops, markets and malls to close early in some parts in an effort to protect its citizens from the toxic air.
Blinken in Brussels as Trump win raises alarm over Ukraine
- US top diplomat Antony Blinken will meet with NATO and EU officials Wednesday to urgently discuss ramping up support for Ukraine before Donald Trump reclaims the White House
BRUSSELS: US top diplomat Antony Blinken will meet with NATO and EU officials Wednesday to urgently discuss ramping up support for Ukraine before Donald Trump reclaims the White House — potentially jeopardizing future aid.
After landing in Brussels late Tuesday, the secretary of state’s one-day visit will see him meet NATO chief Mark Rutte, European Union diplomacy boss Josep Borrell, his successor Kaja Kallas and Ukraine’s Foreign Minister Andriy Sybiga.
The emergency trip comes as Trump’s election victory, coupled with a political crisis in Germany, heightens fears about the future of assistance for Ukraine at a key point in the fight against Russia’s invasion.
Trump has in the past voiced admiration for Russian President Vladimir Putin and scoffed at the $175 billion the United States committed for Ukraine since the start of the war in 2022.
The 78-year-old tycoon, who will be inaugurated on January 20, spoke with Ukrainian President Volodymyr Zelensky after winning re-election following a first stint as president between 2017 and 2021.
He has boasted he can end the war in a day, likely by forcing concessions from Ukraine, although his newly named national security adviser, Mike Waltz, said Trump may also pressure Putin.
The Washington Post reported the Republican leader also held a phone call with Putin and discouraged an escalation by Russia. The Kremlin denied the report.
The US election came as Ukraine was already bracing for the impact of thousands of North Korean troops whom US intelligence agencies say have been sent to fight for Russia — a potentially major escalation in the conflict.
US media reported Trump might pick Republican Senator Marco Rubio to replace Blinken as secretary of state.
Rubio is seen as more supportive of Kyiv but has also said Washington should show “pragmatism” rather than sending billions of dollars more in weapons as the war hit a “stalemate.”
The Biden administration has made clear it plans in its remaining weeks to push through the more than $9 billion of remaining funding appropriated by Congress for weapons and other security assistance to Ukraine.
Mark Cancian, senior adviser at the Center for Strategic and International Studies, expected the United States to focus in particular on sending vehicles, medical supplies and small-arms ammunition, which Ukraine needs and the United States can provide.
“Between now and the end of the administration, they’re going to try to ship everything they can that’s available,” Cancian said.
Despite Kyiv’s pleas it seems unlikely, however, that Washington will lift its veto on Ukraine’s use of long-range missiles to strike deep into Russian territory.
Both Ukraine and Moscow have seen a spike in drone attacks. The New York Times reported that Russia has amassed 50,000 troops, including North Koreans, to attempt to dislodge Ukrainian forces who seized parts of Russia’s Kursk region several months ago.
“The situation on the battlefield is difficult. And that’s why we must keep working every day,” Kallas, who is to take over as the EU’s top diplomat next month subject to parliament’s green light, told lawmakers on Tuesday.
“Today, tomorrow and for as long as it takes and with as much military, financial and humanitarian help as needed.”
Trump in his first term aggressively pushed Europe to step up defense spending and questioned the fairness of the NATO transatlantic alliance — robustly defended by Biden.
“Whatever approach the US leadership takes toward Ukraine, Europe will have to step up, and we will have to take the lead in supporting Ukraine’s defense efforts and macro financial stability,” said Olena Prokopenko of the German Marshall Fund of the United States.
“Unfortunately, Donald Trump’s win comes at arguably the worst possible time in terms of Europe’s political and economic shape and its ability to promptly coordinate.”
Trump nominates Fox News host Pete Hegseth for defense secretary
- Hegseth was deployed to Iraq and Afghanistan and unsuccessfully ran for Senate in 2012 before joining Fox News
- Former Republican congressman from Texas was director national intelligence in final months of Trump’s first term
WEST PALM BEACH, Florida: President-elect Donald Trump said Tuesday that he is nominating Fox News host and Army veteran Pete Hegseth to serve as his defense secretary.
Hegseth deployed to Iraq and Afghanistan and unsuccessfully ran for Senate in Minnesota in 2012 before joining Fox News.
“With Pete at the helm, America’s enemies are on notice — Our Military will be Great Again, and America will Never Back Down,” Trump said in a statement. “Nobody fights harder for the Troops, and Pete will be a courageous and patriotic champion of our ‘Peace through Strength’ policy.”
President-elect Donald Trump announced Tuesday that he is nominating former Director of National Intelligence John Ratcliffe to lead the Central Intelligence Agency. He also said he had chosen former Arkansas Gov. Mike Huckabee as ambassador to Israel and his longtime friend Steven Witkoff to be a special envoy to the Middle East.
In a flurry of announcements, Trump also named Bill McGinley, his Cabinet secretary in his first administration, as his White House counsel.
Trump is rolling out a steady stream of appointees and nominees for his upcoming administration, working thus far at a faster pace and without as much drama as his first transition following his 2016 victory.
A former Republican congressman from Texas, Ratcliffe served as director of national intelligence for the final months of Trump’s first term, leading the US government’s spy agencies during the coronavirus pandemic. He is a more traditional pick for the role, which requires Senate confirmation, than some rumored loyalists pushed by some of Trump’s supporters.
Huckabee is a staunch defender of Israel, and his intended nomination comes as Trump has promised to align US foreign policy more closely with Israel’s interests as it wages wars against Hamas in Gaza and Hezbollah in Lebanon. Witkoff is a Florida real estate investor who is serving as a chair of Trump’s inaugural committee. He also spent time in the world of New York real estate, where Trump first made his mark as a public figure.
As intelligence director, Ratcliffe was criticized by Democrats for declassifying in the final days of the 2020 presidential election Russian intelligence alleging damaging information about Democrats during the 2016 race even though he acknowledged it might not be true.
Ratcliffe’s visibility rose as he emerged in 2019 as an ardent defender of Trump during the House’s first impeachment proceedings against him. He was a member of Trump’s impeachment advisory team and strenuously questioned witnesses during the impeachment hearings.
After the Democratic-controlled House voted to impeach Trump, Ratcliffe said, “This is the thinnest, fastest and weakest impeachment our country has ever seen.” He also forcefully questioned former special counsel Robert Mueller when he testified before the House Judiciary Committee about his investigation into Russian interference in the 2016 election.
“I look forward to John being the first person ever to serve in both of our Nation’s highest Intelligence positions,” Trump said in a statement. “He will be a fearless fighter for the Constitutional Rights of all Americans, while ensuring the Highest Levels of National Security, and PEACE THROUGH STRENGTH.”
Huckabee has led paid tour group visits to Israel for years, frequently advertising the trips on conservative-leaning news outlets.
“Mike has been a great public servant, Governor, and Leader in Faith for many years,” Trump said in a statement. “He loves Israel, and the people of Israel, and likewise, the people of Israel love him. Mike will work tirelessly to bring about Peace in the Middle East!”
David Friedman, who served as Trump’s ambassador to Israel in his first term, said he was “thrilled” by Trump’s selection of Huckabee.
Witkoff is also the president-elect’s golf partner and was with him when he was the target of a second assassination attempt at his golf club in West Palm Beach, Florida, in September.
Trump’s transition team did not offer details about the Middle East envoy role, but Trump said in a statement, “Steve will be an unrelenting Voice for PEACE, and make us all proud.”
The selection of Witkoff follows a pattern for Trump in putting people close to him in pivotal roles on the Middle East portfolio. Eight years ago he appointed his former corporate attorney Jason Greenbaltt as his special representative for international negotiations and relied on his son-in-law, Jared Kushner, as his personal envoy in talks in the region.
Trump says Musk, Ramaswamy will form outside group to advise White House on government efficiency
- Musk has been a constant presence at Mar-a-Lago since Trump won the presidential election
- Trump said in his statement the two will “pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies”
WASHINGTON: President-elect Donald Trump on Tuesday said Elon Musk and former GOP presidential candidate Vivek Ramaswamy will lead a new “Department of Government Efficiency” — which is not, despite the name, a government agency.
The acronym “DOGE” is a nod to Musk’s favorite cryptocurrency, dogecoin. Trump said in a statement that Musk and Ramaswamy will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.” He added that the move would shock government systems.
It’s not clear how the organization will operate. It could come under the Federal Advisory Committee Act, which dictates how external groups that advise the government must operate and be accountable to the public.
Federal employees are generally required to disclose their assets and entanglements to ward off any potential conflicts of interest, and to divest significant holdings relating to their work. Because Musk and Ramaswamy would not be formal federal workers, they would not face those requirements or ethical limitations.
Musk has been a constant presence at Mar-a-Lago since Trump won the presidential election.
The president-elect has often said he would give Musk a formal role overseeing a group akin to a blue-ribbon commission that would recommend ways to slash spending and make the federal government more efficient. Musk at one point suggested he could find more than $2 trillion in savings — nearly a third of total annual government spending.
Trump had made clear that Musk would likely not hold any kind of full-time position, given his other commitments.
“I don’t think I can get him full-time because he’s a little bit busy sending rockets up and all the things he does,” Trump said at a rally in Michigan in September. “He said the waste in this country is crazy. And we’re going to get Elon Musk to be our cost cutter.”
Ramaswamy suspended his campaign in January and threw his support behind Trump.
Trump said in his statement the two will “pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
Trump nominates Fox News host Pete Hegseth for defense secretary
- Trump is rolling out a steady stream of appointees and nominees for his upcoming administration, working thus far at a faster pace
WEST PALM BEACH, Florida: President-elect Donald Trump said Tuesday that he is nominating Fox News host and Army veteran Pete Hegseth to serve as his defense secretary.
Hegseth deployed to Iraq and Afghanistan and unsuccessfully ran for Senate in Minnesota in 2012 before joining Fox News.
“With Pete at the helm, America’s enemies are on notice — Our Military will be Great Again, and America will Never Back Down,” Trump said in a statement. “Nobody fights harder for the Troops, and Pete will be a courageous and patriotic champion of our ‘Peace through Strength’ policy.”
President-elect Donald Trump announced Tuesday that he is nominating former Director of National Intelligence John Ratcliffe to lead the Central Intelligence Agency. He also said he had chosen former Arkansas Gov. Mike Huckabee as ambassador to Israel and his longtime friend Steven Witkoff to be a special envoy to the Middle East.
In a flurry of announcements, Trump also named Bill McGinley, his Cabinet secretary in his first administration, as his White House counsel.
Trump is rolling out a steady stream of appointees and nominees for his upcoming administration, working thus far at a faster pace and without as much drama as his first transition following his 2016 victory.
A former Republican congressman from Texas, Ratcliffe served as director of national intelligence for the final months of Trump’s first term, leading the US government’s spy agencies during the coronavirus pandemic. He is a more traditional pick for the role, which requires Senate confirmation, than some rumored loyalists pushed by some of Trump’s supporters.
Huckabee is a staunch defender of Israel, and his intended nomination comes as Trump has promised to align US foreign policy more closely with Israel’s interests as it wages wars against Hamas in Gaza and Hezbollah in Lebanon. Witkoff is a Florida real estate investor who is serving as a chair of Trump’s inaugural committee. He also spent time in the world of New York real estate, where Trump first made his mark as a public figure.
As intelligence director, Ratcliffe was criticized by Democrats for declassifying in the final days of the 2020 presidential election Russian intelligence alleging damaging information about Democrats during the 2016 race even though he acknowledged it might not be true.
Ratcliffe’s visibility rose as he emerged in 2019 as an ardent defender of Trump during the House’s first impeachment proceedings against him. He was a member of Trump’s impeachment advisory team and strenuously questioned witnesses during the impeachment hearings.
After the Democratic-controlled House voted to impeach Trump, Ratcliffe said, “This is the thinnest, fastest and weakest impeachment our country has ever seen.” He also forcefully questioned former special counsel Robert Mueller when he testified before the House Judiciary Committee about his investigation into Russian interference in the 2016 election.
“I look forward to John being the first person ever to serve in both of our Nation’s highest Intelligence positions,” Trump said in a statement. “He will be a fearless fighter for the Constitutional Rights of all Americans, while ensuring the Highest Levels of National Security, and PEACE THROUGH STRENGTH.”
Huckabee has led paid tour group visits to Israel for years, frequently advertising the trips on conservative-leaning news outlets.
“Mike has been a great public servant, Governor, and Leader in Faith for many years,” Trump said in a statement. “He loves Israel, and the people of Israel, and likewise, the people of Israel love him. Mike will work tirelessly to bring about Peace in the Middle East!”
David Friedman, who served as Trump’s ambassador to Israel in his first term, said he was “thrilled” by Trump’s selection of Huckabee.
Witkoff is also the president-elect’s golf partner and was with him when he was the target of a second assassination attempt at his golf club in West Palm Beach, Florida, in September.
Trump’s transition team did not offer details about the Middle East envoy role, but Trump said in a statement, “Steve will be an unrelenting Voice for PEACE, and make us all proud.”
The selection of Witkoff follows a pattern for Trump in putting people close to him in pivotal roles on the Middle East portfolio. Eight years ago he appointed his former corporate attorney Jason Greenbaltt as his special representative for international negotiations and relied on his son-in-law, Jared Kushner, as his personal envoy in talks in the region.