KARACHI: A leading bank in Pakistan on Sunday announced it had launched the country’s first Shariah-compliant point of sale (POS) machine by publishing an advertisement in local newspapers that carried an image of a green device.
“At the backend, the POS machine is supported by the Islamic banking merchant accounts and will reject any non-compliant transactions,” Farhan Ahmed, head of corporate affairs at the HBL Islamic Banking that published the ad, told Arab News on Monday.
“We are installing the machine at different business venues which are Shariah-compliant,” he said.
Ahmed added the POS machine would “only facilitate Shariah-compliant transactions, backed by a Shariah-compliant merchant establishment agreement.”
Financial experts maintain the launch of the POS machine will be helpful for businesses that are reluctant to use interest-based financing modes.
“This will encourage businesses to open Islamic banking accounts, especially the entities that are sensitive to non-compliant dealing,” Ahmed Ali Siddiqui, director at the Center for Excellence in Islamic Finance, said. “Apart from that, it will inspire merchants to open Islamic bank accounts.”
Pakistan, a Muslim-majority country of about 225 million people, has witnessed a robust growth of interest-free or Islamic banking in recent years with asset of over Rs4 trillion and deposits of Rs3.4 trillion.
According to the State Bank of Pakistan (SBP), the assets and deposits of Islamic banking institutions (IBI) achieved a year-on-year growth of 30.6 percent and 28.4 percent, respectively, in March 2021.
The central bank’s record shows the market share of Islamic banking industry’s assets and deposits in the overall banking industry stand at 17 and 18.7 percent.
The SBP wants to achieve a growth target of about 30 percent in the assets and deposits of the country’s Islamic banking sector by 2025.
“The central banking is working on the capacity building of banks and training of human resources to achieve this target,” Mufti Muhammad Zahid, who is associated with the Soneri Bank, said. “We believe the country can easily achieve that growth target by 2025.”
Pakistan became the sixth most important Islamic financial market in the world in 2020, according to the Global Islamic Finance Report, a London-based publication covering developments in the Islamic financial services industry in the world.
The country has five Islamic banks, 17 Islamic banking windows, a vibrant Modaraba sector and a growing Islamic funds management industry with an ever-increasing focus on Islamic microfinance, the report maintained.
It also acknowledged that the country had developed an excellent framework to implement Islamic banking on a comprehensive scale, though it added that Pakistan’s bureaucracy needed to be fully educated and convinced about the potential of Islamic finance.
Pakistani bank launches first Shariah-compliant point of sale machine
https://arab.news/7mu2t
Pakistani bank launches first Shariah-compliant point of sale machine
- HBL Islamic Banking says the machine will be backed by a Shariah-compliant merchant establishment agreement
- According to the Global Islamic Finance Report, Pakistan is the sixth most important Islamic financial market in the world
Pakistan accelerates push to operationalize regulatory framework for digital assets
- Finance Minister Muhammad Aurangzeb chairs key meeting on Pakistan’s digital assets legislation
- Pakistan state minister for crypto meets US lawmakers to strengthen digital assets cooperation
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday stressed operationalizing a framework to harness blockchain and crypto technologies’ economic potential and to fast-track their approval process, the Finance Division said amid Islamabad’s push to adopt digital assets.
Islamabad established the Pakistan Crypto Council (PCC) in March to help guide national policy on blockchain, digital currencies and crypto-related investments. This was followed by the government’s announcement of a Strategic Bitcoin Reserve (SBR) at the Bitcoin 2025 Conference in Las Vegas, making Pakistan one of the first Asian countries to integrate Bitcoin into its sovereign asset strategy. The government also plans to establish an autonomous regulatory body to oversee the country’s digital finance and crypto ecosystem.
Aurangzeb chaired a meeting at the Finance Division to review progress on the development of a comprehensive regulatory framework for digital and virtual assets in the country. The law ministry tabled a draft of the proposed legal framework during the meeting, which was developed through close collaboration with members of the PCC, key stakeholders and technical experts.
“During the meeting, the draft was thoroughly reviewed and refined,” the Finance Division said. “It was collectively agreed that in-principle approval process will be fast-tracked to ensure timely enactment and effective implementation.”
The draft legislation outlines a regulatory structure for digital and virtual assets, encompassing governance mechanisms, licensing protocols and investor protection provisions, the statement said. The proposed framework seeks to position Pakistan as a forward-looking participant in the digital asset ecosystem, it added.
‘BEST IDEAS’
Separately, Pakistan’s State Minister for Crypto and Blockchain Bilal Bin Saqib met over a dozen key American officials and lawmakers in Washington to strengthen cooperation in digital assets, blockchain regulation, and financial innovation, his office said.
Saqib met Senator Cynthia Lummis, co-author of the Lummis-Gillibrand Responsible Financial Innovation Act and co-sponsor of the BITCOIN Act, which seeks to designate Bitcoin as a strategic reserve asset.
Saqib’s office said Lummis has been a leading advocate for “thoughtful and comprehensive” crypto legislation in the US.
He also met Senator Ted Cruz, Congressman Troy Downing, who is a member of the House Financial Services Subcommittee on Digital Assets, Congressman Ryan Zinke, Congressman Rick McCormick, and Congressman Derrick Van Orden.
Saqib’s office said these lawmakers were engaged in shaping policy frameworks related to emerging technologies in the US.
“We came to learn, to listen, and to contribute,” Bilal said. “Pakistan is actively studying how global leaders are approaching regulation, innovation, and financial inclusion — not to copy, but to adapt the best ideas for our own unique landscape.”
Pakistan’s broader digital asset strategy includes allocating 2,000 megawatts of surplus power to support Bitcoin mining and AI-driven data zones, aiming to turn untapped energy into economic productivity, job creation and digital infrastructure growth.
As regulatory frameworks continue to evolve globally, Pakistan says it is taking proactive steps to integrate private sector innovation with state policy and international partnerships, positioning itself as a key player in the next phase of the global digital economy.
In meeting with US lawmakers, Pakistani delegation says Delhi resisting dialogue with Islamabad
- Pakistan’s PM set up delegation last month, tasking it to present Islamabad’s perspective on recent India conflict
- Pakistani delegation criticizes India’s suspension of water-sharing agreement, says endangers future of entire region
KARACHI: A Pakistani delegation led by former foreign minister Bilawal Bhutto Zardari met a group of American lawmakers on Thursday, telling them that India is consistently resisting dialogue to resolve bilateral issues.
Prime Minister Shehbaz Sharif set up the delegation last month, tasking it to present Pakistan’s point of view regarding the country’s conflict with India last month. India and Pakistan last month engaged in four days of fighting, striking each other with missiles, drones, artillery and fighter jets before Washington brokered a ceasefire on May 10.
Bhutto Zardari’s delegation has held a series of meetings with top international diplomats since arriving in New York on Monday, urging the global community to help India and Pakistan enter a comprehensive dialogue to peacefully resolve their differences.
On Thursday the delegation met members of the US Congressional Pakistan Caucus in Washington. These included Republican party leaders Jack Bergman and Ryan Zinke and Democratic leaders Tom Suozzi and Ilhan Omar, among others.
“Pakistan remains committed to peace, but sadly, India consistently resists dialogue,” Bhutto Zardari was quoted as saying by Bilawal House, his official residence.
The former foreign minister criticized India’s decision to hold in abeyance the Indus Waters Treaty, a decades-old water-sharing agreement with Pakistan.
“India has weaponized water, endangering the future of not only Pakistan but the entire region,” he said.
He warned that if Indian hostility is not curbed in time, it could “seriously jeopardize regional peace.” The Pakistani politician reaffirmed his country’s desire for constructive engagement based on mutual respect and peaceful resolution of disputes, the statement said.
“The members of Congress welcomed the delegation, listened carefully to Pakistan’s concerns, and expressed willingness to strengthen bilateral engagement and regional stability,” the statement concluded.
Tensions between the arch-rivals began on April 22 when militants attacked a resort in Indian-administered Kashmir’s Pahalgam area, killing 26 tourists.
India blamed Pakistan for supporting militants involved in the attack, a charge Pakistan vehemently denied and called for a transparent, international probe into the incident.
Pakistan and India, bitter rivals, have fought two out of three wars over the disputed territory of Kashmir that they both claim in full but govern only parts of.
India accuses Pakistan of supporting militants in the part of Kashmir it administers. Islamabad denies the allegation and says it extends only diplomatic and moral support to the people of Kashmir.
Washington says Pakistan needs to address barriers to American exports, companies
- Islamabad, Washington last week kicked off negotiations after President Trump announced tariffs on countries, including Pakistan
- Talks expected to “sail through” but Pakistan’s textile industry may take a hit if they fail, warns financial analyst Shankar Talreja
KARACHI: Pakistan’s government needs to address its tariff and non-tariff barriers against American exports and companies, a spokesperson at the US consulate general in Karachi said on Thursday as both nations seek to forge closer trade ties through negotiations.
Reva Gupta, the spokesperson at the US consulate general in Karachi, made the comments a week after Pakistan and the US started what the official described as “dynamic” negotiations with Finance Minister Muhammad Aurangzeb on Washington’s imposition of tariffs.
The talks take place as US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Pakistan faces a potential 29 percent tariff, currently under a 90-day pause announced in April, on its exports to the US due to a $3 billion trade surplus with the world’s biggest economy.
“In our bilateral engagements with Pakistan, we always message the need to jointly tackle challenges to our trade relationship, including the need for Pakistan to address its longstanding tariff and non-tariff barriers against US exports and companies,” Gupta told Arab News.
The tariffs could be a setback to Islamabad’s hectic efforts aimed at navigating a tricky path to economic recovery. Pakistan hopes to achieve sustainable economic growth driven by exports.
The US is Pakistan’s largest export destination. American exports to Pakistan were valued at $2.1 billion in 2024, up 4.4 percent ($90.9 million) from 2023, according to US government data. The import of goods from Pakistan to the US totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023.
“The United States and Pakistan share a robust economic relationship going back decades, of which trade and investment are key elements,” Gupta said. “That the United States remains Pakistan’s largest export market globally is a testament to this strong partnership”.
Gupta, however, referred to US Trade Representative’s (USTR) National Trade Estimate Report which highlights significant foreign barriers to US exports in various countries, including Pakistan.
The USTR details tariff and non-tariff hurdles ranging from Pakistan charging higher tariffs to US businesses to the closure of Internet services, imposing a ban on US beef imports and “perceived politicization” of the anti-graft National Accountability Bureau body.
“US companies have cited concerns that Pakistan has been imposing high tariff rates and, in some cases, additional duties, on products such as automobiles and finished goods,” the report said.
Qamar Sarwar Abbasi, a spokesperson of Pakistan’s finance ministry, did not respond to Arab News’ request for comment.
Some prominent American companies operating in Pakistan include Pepsi-Cola, General Electric International, Procter and Gamble, Pfizer and DuPont, according to the International Trade Administration, a US government agency.
Experts have warned the tariffs could harm Pakistan’s competitiveness in the global market, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.
‘LIKELY TO SAIL THROUGH’
However, economist Shankar Talreja, who is also the director of research at Topline Securities Ltd. brokerage form, said talks between Washington and Islamabad are likely to “sail through.”
“Pak-US trade talks are likely to sail through as Pakistan exports are primarily based on labor-intensive industry such as textile,” Talreja told Arab News.
He said Pakistan is likely to increase its import of agricultural commodities such as cotton and petroleum products from the US to fill the trade deficit.
But if talks fail, Pakistani textile exports may be adversely affected, he said.
“If talks are not successful, Pakistan textile exports may get hurt in future assuming other countries will successfully negotiate with the US,” the analyst warned.
The textile industry attracts the largest amount of foreign exchange for Pakistan, fetching $17 billion for the cash-strapped nation in FY2024.
Pakistan’s Met Office forecasts ‘severe’ heatwave during Eid Al-Adha holidays
- High pressure likely to develop over country on June 7, expected to grip most areas from June 8
- Day temperatures likely to remain 5°C to 7°C above normal from June 7-12 in country’s upper half
ISLAMABAD: The Pakistan Meteorological Department (PMD) on Thursday forecast a “severe” heatwave in the country during the Eid Al-Adha holidays from June 7 to 12, urging the public to take precautionary measures.
Pakistan ranks among the top ten countries most vulnerable to climate change and has faced increasingly frequent extreme weather events in recent years, including deadly heatwaves and devastating floods.
“Met Office predicted that high pressure is likely to develop over the country on June 7 and is expected to grip most parts from June 8,” the PMD said in a statement.
“Day temperatures are likely to remain 5°C to 7°C above normal in the upper half (central & upper Punjab, Islamabad, Khyber-Pakhtunkhwa, Kashmir, Gilgit-Baltistan) from June 7 to June 12.”
Dust storms and gusty winds are expected across the plains of the country due to intense heat, it added.
The Met Office advised women, the elderly and children to avoid direct sunlight during the day and stay hydrated at all times as precautionary moves.
Farmers were urged to manage their crop activities according to the latest weather conditions and to take care of their livestock.
The Met Office urged authorities to remain vigilant and take necessary measures to prevent any adverse situations arising from the heatwave conditions.
Pakistan experienced its most recent heatwave in May but no loss of life was reported.
In June 2024, nearly 700 people died in less than a week during a severe heatwave in the country, with most fatalities reported in the port city of Karachi and other parts of the southern Sindh province.
A similar heatwave in 2015 claimed over 2,000 lives in Pakistan’s largest city Karachi alone, while catastrophic floods in 2022 left more than 1,700 people dead and displaced over 33 million across the country.
Pakistan says ‘no formal decision’ taken on abrogating bilateral agreements with India
- Pakistan’s defense minister earlier said Simla Agreement with India “has no worth or value”
- Pakistan, India agreed to resolve Kashmir dispute bilaterally in the 1972 Simla Agreement
ISLAMABAD: Pakistan has so far not made any decision to abrogate any bilateral agreement with India, a senior official of the country’s foreign office said on Thursday, hours after Defense Minister Khawaja Asif stated the provisions of Islamabad’s Simla Agreement with Delhi were no longer applicable.
India and Pakistan signed the Simla Agreement in 1972 after the 1971 war between the two countries, which New Delhi won and led to the creation of Bangladesh. One of its main clauses was that India and Pakistan both agreed to bilaterally discuss and resolve the issue of the disputed Himalayan territory of Kashmir.
Another clause of the agreement was that both countries renamed the Ceasefire Line, the de facto border separating Pakistan-administered Kashmir from the one governed by India, to the “Line of Control” (LoC). Both India and Pakistan agreed not to change it unilaterally.
After India suspended a decades-old water-sharing treaty with Pakistan following an attack in Indian-administered Kashmir in April, Pakistan announced a raft of tit-for-tat measures against Delhi. Islamabad said it had the right to hold all bilateral agreements with India, including the Simla Agreement, in abeyance.
Speaking to Geo News, Asif said the “sanctity” of the agreement had ended due to India’s steps and that all of its provisions were no longer applicable. The defense minister said the bilateral agreement as a whole after India and Pakistan’s May military confrontation, “has no worth or value.”
“No formal decision on abrogation of any bilateral agreement with India has so far been made,” a senior official of Pakistan’s Ministry of Foreign Affairs (MoFA) told Arab News in response to questions.
Asif had reiterated Pakistan’s position that India’s move to hold the Indus Waters Treaty (IWT) in abeyance was illegal as the terms dictated that neither of the two parties could alter its status unilaterally.
Signed in 1960, the treaty allocates the six Indus Basin rivers between India and Pakistan, with the World Bank acting as its guarantor.
Pakistan has rights to the western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower. India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow.
India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes
Asif said neither the World Bank nor any other institution had any “interference or patronage” in the Simla Agreement when it was signed in 1972.
“So then, the Control Line will once again shift to its original status of Ceasefire Line,” the minister said.
While the fragile ceasefire between India and Pakistan announced on May 10 by US President Donald Trump -persists, tensions remain high as delegations by both nuclear-armed neighbors head to world capitals and blame each other for the May conflict.
Kashmir has always remained the root cause of conflict between India and Pakistan. The two countries claim the region in full but administer only parts of it. They have fought two out of three wars since 1947 over the territory.
Delhi blames Islamabad for fomenting militancy in the part of Kashmir it administers. Pakistan denies the allegations and says it only extends diplomatic support to the people of Kashmir it says are living under “occupation.”
