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First Pakistani fintech to launch advance salary withdrawals expands to UAE next month

The undated photo shows team members of Pakistan-based fintech, Abhi. (Photo courtesy: Social Media)
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Updated 07 October 2022
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First Pakistani fintech to launch advance salary withdrawals expands to UAE next month

  • Abhi has plans to launch operation to other countries also, including Bangladesh, Sri Lanka, and Saudi Arabia
  • Abhi was among 16 startups chosen by UAE business incubator Hub71 for its Incentive Program this August
Updated 07 October 2022
KHURSHID AHMED   

KARACHI: A Pakistan-based fintech, Abhi, is all set to launch its operations in the United Arab Emirates (UAE) from next month, enabling thousands of employees to draw salaries before the next payroll, the firm’s CEO said, the first step in the company’s expansion to the Middle East and beyond.

Abhi is the first Pakistani financial wellness platform that enables salaried employees to draw a percentage of their accrued salary before the next payroll through a mobile app or via SMS. It was also the first Pakistani fintech among 16 startups chosen by Abu Dhabi-based business incubator, Hub71, for its Incentive Program in August this year.

Abhi, after raising around $19 million in less than two years from investors from the United States and the UAE, is now expanding its outreach to the Middle East from next month. It launched in Pakistan in July last year.

Omair Ansari, the co-founder and CEO of Abhi, told Arab News the company would launch in the UAE in November 2022, empowering an expected 100,000 workers. 

“Now workers in the UAE will have access to their salaries on a daily basis and they will not have to wait for the month to end to withdraw their salaries,” Ansari said on Thursday. “The employees would be able to withdraw their salaries based on their earned working hours, which would be accrued on a per minute basis.” 

The fintech will be the first Pakistani startup to offer such services in the UAE. It currently has over 100,000 active users from more than 300 companies. 

The Abhi chief said he was also planning to facilitate Pakistani workers living in the UAE with cross border transactions so that they could remit in real time. 

“We are also working to facilitate Pakistani workers in the UAE so that they can be enabled to make cross-border transactions in real time to their families at home any time during the month instead of waiting for the end of the month,” Ansari said.

Next, the startup has plans to expand its operation to other countries also, including Bangladesh, Sri Lanka, and Saudi Arabia.

The Pakistani startup is expanding its outreach at a time when after a record year of Pakistani startups raising $350 million in venture capital funding in 2021, reality set in in 2022, with major companies announcing they were reducing services and laying off employees due to sluggish economic activity and amid rising fuel prices and inflation. Things are only expected to get worse as Pakistan faces the economic impacts of worst-ever floods. 

“This is a tough time for startups in Pakistan, in fact for the whole economy, that is disturbed and suffering from economic slowdown,” Ansari said. “In such conditions, startups move into survival mood and avoid unnecessary spending.” 

Pakistani financial experts said a tightening global macro environment coupled with increasing domestic political instability was a cause of concern for the domestic startup economy. 

“The major challenge is economic instability. When the macro headlines are so negative, even the most optimistic investors opt to wait and see,” Uzair Younus, Pakistan director at the Washington-based Atlantic Council, told Arab News.

However, despite heightened investor skepticism stemming from geopolitical tensions and mounting fear of a global recession, total funds raised by Pakistani Startups in the nine months of 2022 stood at $328 million, 87 percent of the total funding in 2021, according to Alpha Beta Core, a startup investment advisory firm.

Indeed, many Pakistani experts believe local startups will continue to get global attraction despite adverse economic circumstances.

“We look forward to a better close of 2022 as compared to 2021,” Khurram Schehzad, CEO of Alpha Beta Core, said. “Pakistan startups still have much better surviving rates, both in terms of size and numbers, than the rest of the region or the world.”

Topics: Pakistan fintech Abhi Pakistan UAE ties

Public gatherings banned in Islamabad for two months ahead of opposition protest

Updated 10 sec ago
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Public gatherings banned in Islamabad for two months ahead of opposition protest

  • District magistrates bans gathering of more than five people for next two months
  • Ban comes as Pakistan Tehreek-e-Insaf is planning protest in Islamabad on Nov. 24
Updated 10 sec ago
SAIMA SHABBIR

ISLAMABAD: A two-month ban on public gatherings has been imposed in Pakistan’s federal capital, Islamabad, a notification from the district magistrate said on Monday, days ahead of a planned protest march by the party of jailed former Prime Minister Imran Khan.

The Pakistan Tehreek-e-Insaf party (PTI) announced last week it would lead a ‘long march’ to the capital on Nov. 24 over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners, including Khan, and in support of the independence of the judiciary.

The party’s recent rallies and marches have been thwarted by similar bans on public gatherings imposed under Section 144 of the Pakistan Penal Code which allows the government to prohibit various forms of political assembly, gatherings, sit-ins, rallies, demonstrations, and other activities for a specified period.

In a notification dated Nov. 18, the district magistrate, without naming the PTI, said processions being planned in the capital “can disrupt public place and tranquility and keeping in view the current law & order and security environment, it is necessary to control such types of illegal activities which present a threat to public peace, tranquility and maintenance of law & order.”

He added that the demonstrations would cause “public annoyance or injury, endanger human life and safety, pose a threat to public property, and may lead to a riot or an affray including sectarian riot within the revenue/territorial limits of district Islamabad.”

In light of this, all gatherings of more than five people are banned in the capital, the notification said:

“This order shall come into force with immediate effect and shall remain in force for a period of TWO MONTHS.” 

Khan has been in jail since August 2023 and has faced dozens of cases since he was removed as prime minister in 2022 after which he launched a protest movement against a coalition of his rivals led by current Prime Minister Shehbaz Sharif and backed by the all-powerful military, which denies interfering in politics. 

Khan says cases against him, which disqualified him from contesting the February elections, are politically motivated. His party has held several protest rallies in recent months to build public pressure for its leader’s release.

With regards to the latest protest, the PTI’s first demand is a rollback of recent constitutional amendments like the 26th amendment that the PTI says is an attempt to curtail the independence of the senior judiciary. It is also calling for the release of party leaders and supporters and a return of what it describes as a “stolen mandate” after Feb. 8 general elections.

Pakistan’s government denies being unfair in its treatment of Khan and his party and the election commission rejects allegations the elections were rigged. The government also says recent amendments related to the judiciary are meant to smooth out its functioning and tackle a backlog of cases.

Topics: Islamabad Pakistan

Pakistan Stock Exchange may gain at least 27% by end of 2025 — Bloomberg

Updated 24 min 40 sec ago
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Pakistan Stock Exchange may gain at least 27% by end of 2025 — Bloomberg

  • Benchmark KSE-100 Index forecast to increase to 127,000 points by Dec. 2025, a 34% rise, from 94,704 points it closed on Friday
  • Key index advanced as much as 0.6% on Monday, taking gains to more than 50% this year, the second best performer globally
Updated 24 min 40 sec ago
Arab News Pakistan

ISLAMABAD: Pakistan’s stocks are expected to advance by more than a quarter by the end of next year as the nation’s economy shows improvement under a loan program with the International Monetary Fund and the currency stabilizes, Bloomberg reported on Monday, quoting two brokerage houses. 

The benchmark KSE-100 Index is forecast to increase to 127,000 points by December 2025, or a 34% rise, from the 94,704 points it closed last Friday, according to Topline Securities Ltd. in a report announced on Nov. 16. Arif Habib Ltd. targets the index to reach 120,000 points, a gain of 27%.

“The stage is set for a potential market re-rating with declining interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.

Pakistan’s economy has stabilized with inflation easing from record levels that has allowed the central bank to cut the interest rate for four straight meetings to 15 percent, the lowest in two years. 

The key index advanced as much as 0.6% on Monday, taking its gains to more than 50% this year, the second best performer globally, according to data compiled by Bloomberg.

The equity market will be offering a 37% return including 10% dividend yield by the end of 2025 because of economic stability and falling bond yields, Karachi-based Topline said in a separate report.

Pakistan is also increasingly attracting the attention of foreign investors, particularly in its debt and equity markets, said Arif Habib.

Topics: Pakistan Stock Exchange PSX stocks Pakistan economy

Pakistan says taking steps to put climate change studies in national curriculum

Updated 51 min 30 sec ago
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Pakistan says taking steps to put climate change studies in national curriculum

  • PM’s aide says government has developed modules to build climate awareness from primary to university levels
  • Says teachers across Pakistan are being equipped with the skills and tools to deliver climate education effectively
Updated 51 min 30 sec ago
SAIMA SHABBIR

ISLAMABAD: Pakistan is taking steps for climate change studies to become a standard part of the school curriculum from the primary to university levels and training teachers to become key agents in creating awareness in young people, Coordinator to the Prime Minister on Climate Change, Romina Khurshid Alam, said on Monday.

The United Nations Education, Science and Culture Organization, UNESCO, has said environmental studies should be standard teaching in all countries by 2025.

Such studies are crucial for a country like Pakistan, one of the most vulnerable to climate change according to the Global Climate Risk Index. Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country’s economic struggles and high debt burden impinged its ability to respond to the disaster.

 “Education is the cornerstone of sustainable development and climate action for a resilient and environmentally-sustainable society,” the PM’s climate aide said in a keynote address at an event on the sidelines of COP29 global Climate Summit, which is taking place from Nov. 11-22. 

“Our commitment to greening education stems from the belief that equipping our youth with climate knowledge is fundamental to achieving long-term resilience and sustainability.”

Outlining steps to mainstream climate education into the national education system, Alam said the government had developed educational modules tailored to build climate awareness from the primary to university levels. 

“These modules emphasize the science of climate change, its impacts, and actionable solutions, ensuring that students grow up with a sense of responsibility toward the environment,” the aide said. 

“These efforts also extend to training teachers as key change agents in this mission … Teachers across Pakistan are being equipped with the skills and tools to deliver climate education effectively … and community-based programs have been introduced to create broader awareness and engage parents, caregivers and local leaders in the process of greening education.

“By greening our education systems, we are equipping the next generation with the knowledge, skills, and values needed to address climate change and build a resilient future,” Alam added.

Finance Minister Muhammad Aurangzeb said last month Pakistan was targeting around $1 billion in a formal request for funding from the IMF facility that helps low and middle income countries mitigate climate risk.

The International Monetary Fund had already agreed a $7 billion bailout for Pakistan, but has further funding available via its Resilience and Sustainability Trust (RST).

The RST, created in 2022, provides long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.

Pakistan is also in talks with the Asian Infrastructure Investment Bank for a credit enhancement for a planned Panda bond, Aurangzeb said. It is targeting an initial issuance of $200-250 million by the end of June.

Pakistani Prime Minister Shehbaz Sharif, who spoke at a number of events at COP29 last week, used the forum to highlight the need to restore confidence in the pledging process and increase climate finance for vulnerable, developing countries. He said developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.

The main task for nearly 200 countries at the COP29 summit is to broker a deal that ensures up to trillions of dollars in financing for climate projects worldwide.

Topics: climate change Pakistann

Pakistan’s current account surplus hits $349 million in October, signaling economic turnaround

Updated 18 November 2024
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Pakistan’s current account surplus hits $349 million in October, signaling economic turnaround

  • Last year, Pakistan posted a current account deficit of $290 million during the same month, as per official records
  • This is the third consecutive month in which Pakistan has recorded a surplus, also the highest during this year
Updated 18 November 2024
Arab News Pakistan

ISLAMABAD: Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period, according to the State Bank of Pakistan (SBP) on Monday.
The current account reflects a nation’s transactions with the rest of the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
Last month’s current account surplus contrasts sharply with the $290 million deficit recorded in October 2023, highlighting a significant improvement in the country’s economy.
“The external current account recorded a surplus of $349 million in October 2024, after showing a surplus of $86 million and $29 million in September 2024 and August 2024 respectively,” the central bank said in a brief statement.
Pakistan has faced economic challenges in recent years, including high inflation, a depreciating currency, and dwindling foreign reserves.
In response, the government has implemented a series of reforms aimed at stabilizing the economy, including securing a $7 billion bailout from the International Monetary Fund (IMF) in September, which is contingent upon measures such as broadening the tax base, reducing energy sector deficits and privatizing state-owned enterprises.
The consecutive current account surpluses, culminating in the substantial $349 million in October, suggest that Pakistan is transitioning from mere stabilization to a phase of economic growth.
This positive trend is bolstered by increased remittances from overseas Pakistanis, which reached a record $11.8 billion in the first four months of the fiscal year, marking a 35 percent year-on-year growth.
Pakistani authorities have emphasized the importance of continuing prudent fiscal and monetary policies to consolidate these gains and ensure long-term economic stability.
The country’s finance chief, Muhammad Aurangzeb, said a day earlier the international lending agencies had acknowledged the improvement in the national economy, though he added that they wanted the government to continue with stringent structural reforms.
“There is no room for complacency,” he added.

Topics: Pakistan State Bank of Pakistan

Marcus Stoinis lets rip as Australia crush Pakistan for T20 series whitewash

Updated 18 November 2024
Reuters
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Marcus Stoinis lets rip as Australia crush Pakistan for T20 series whitewash

  • After opting to bat, Pakistan raced to 62-1 before crumbling to 117 all out in the 19th over
  • Stoinis slammed five sixes and five fours in his 27-ball masterclass, staying unbeaten at 61
Updated 18 November 2024
Reuters

HOBART: Marcus Stoinis slammed five huge sixes in an unbeaten 61 as Australia crushed Pakistan by seven wickets in Hobart on Monday to secure a 3-0 T20 series whitewash.

Chasing a meagre 118, the hosts hit the target in the 12th over to hand Pakistan a reality check after the visitors won the preceding ODI series 2-1.

Stoinis was unstoppable once he got going, also blasting five fours in his 27-ball masterclass.

“It’s really nice to get another win and go 3-0 up,” said Australia skipper Josh Inglis.

“When he’s going like that, it’s really hard to stop,” he added of Stoinis. “One of those sixes was probably the biggest I’ve seen.”

The match at Bellerive Oval was a dead rubber after Australia won a rain-hit match in Brisbane by 29 runs and then in Sydney by 13 runs.

After opting to bat, Pakistan raced to 62-1 before crumbling to 117 all out in the 19th over with Babar Azam top-scoring on 41 and Aaron Hardie taking 3-21.

Jake Fraser-McGurk began the run chase with consecutive boundaries from Shaheen Shah Afridi before the speedster dismissed Matt Short for two, caught at mid-on by Irfan Khan.

Fraser-McGurk (18) followed next over, undone by the sheer pace of Jahandad Khan in another mis-fire by the 22-year-old.

But Inglis kept the scoreboard ticking over alongside Stoinis, who let rip in the ninth over, punishing Haris Rauf for 20, including a massive six that landed on the stadium roof.

Their 55-run partnership ended when Inglis scooped Abbas Afridi to Rauf on 27, which brought Tim David to the crease.

He was bystander to Stoinis, who brought up his fifth T20 half-century with another giant six before seeing them home.

“There’s lots of positives, the way some of the players batted and bowled, these youngsters will come good,” said Salman Agha, Pakistan’s skipper for the night with Mohammad Rizwan rested.

“It’s a big achievement for us to win a one-day series here after 22 years, we could have done better in the T20 series but we’ll come back stronger.”

Sahibzada Farhan opened the Pakistan batting with Azam in the absence of Rizwan.

But on a chilly evening, he lasted just seven balls before top-edging a short one from Spencer Johnson — fresh from taking five wickets in Sydney — to Xavier Bartlett.

Azam produced a series of elegant strokes as he and Haseebullah Khan put on a quickfire 44 for the second wicket.

But Kahn was no match for Adam Zampa’s spin, collecting an outside edge on 24 to Short.

Pakistan’s woes mounted with Usman Khan (3) caught on the ropes after slogging Hardie and Agha trapped lbw by the same bowler for one.

It left them reeling on 72-4 at the halfway mark and when Zampa bowled Azam and Khan (10) was needlessly run out they were in deep trouble.

Shaheen Shah Afridi blasted only six of the innings but didn’t last as the tailenders were mopped up.

Topics: Marcus Stoinis Australia v Pakistan T20 series

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