Pakistan ‘very carefully’ treads path to launching own digital currency — central bank

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Updated 24 November 2022
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Pakistan ‘very carefully’ treads path to launching own digital currency — central bank

  • Country ranked third in the global crypto adoption index in 2020-21, after India and Vietnam
  • 2021 data shows Pakistan had recorded an increase of 711 percent in cryptocurrency value in 2020-21

KARACHI: Pakistan is undertaking a “cost and benefit analysis” as a step toward launching its own digital currency in a bid to harness the potential of distributor ledger technology (DLT), which underpins cryptoassets, the governor of the central bank has said, though the path would be treaded “very carefully.”

Pakistan’s central bank had set up a cell to study cryptocurrencies in 2014, but in 2018 declared that virtual currencies like Bitcoin were not legal tenders issued or guaranteed by the country’s government. In the background, however, the central bank has been working to launch its own version of virtual currency, the central bank digital currency (CBDC).

“To harness the potential of distributor ledger technologies, SBP is also researching central bank digital currency and is weighing the cost benefit analysis of this venture,” Jameel Ahmed, governor of the State Bank of Pakistan (SBP), said while speaking at the Pakistan Fintech Forum 2022. 

“We have almost examined all the jurisdictions who are either experimenting or have issued CBDCs in their respective jurisdiction. However, we will tread this path very carefully, especially with regards to design choices and use case analysis.” 

As opposed to cryptocurrencies, CBDC transactions will be recorded in a centralized ledger and the central bank would retain full control over its supply. CBDC has the same value as that of the country’s physical fiat currency, notes or coins. 

Pakistan is competing with regional and global peers to upgrade and digitize its financial systems. However, the governor central bank said financial exclusion and cash were major obstacles.

Pakistan has the third largest unbanked adult population globally with about 100 million adults without a bank account, according to the World Bank.

“Financial exclusion and high usage of cash is a major problem for Pakistan, in fact people who have bank accounts face difficulty accessing formal financial services related to credit and savings from the service providers,” he said.

“Today those disrupting digital technologies provide us with the opportunity to make people financially included.”

Pakistan is one of the leading nations in adopting digital platforms and has its own payment scheme known as PayPak as well as a Real Time Gross Settlement system (RTGS) which processes Rs1.4 trillion per day , according to the central bank.

And despite not being recognized by the SBP, interest in cryptocurrencies has been on the rise. The country ranked third in the global crypto adoption index in 2020-21, after India and Vietnam. The federal chamber of commerce said in a report last year Pakistan had recorded around $20 billion in cryptocurrency value in 2020-21, showing an abnormal increase of 711 percent.

The central bank has not commented on FPPCI’s findings so far but in January this year recommended banning cryptocurrency, arguing that allowing it would cause capital flight. A committee formed by the Sindh High Court to deliberate on virtual currencies also urged imposing a “complete ban.”

The recommendations came as the court last year heard a constitutional petition filed in 2019, which sought to overturn the central bank’s guidance from 2018 advising banks and payment system operators against processing and investing in virtual currencies.


Zimbabwe win toss and elect to bat in 2nd ODI against Pakistan

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Zimbabwe win toss and elect to bat in 2nd ODI against Pakistan

  • Pakistan suffered 80-run humiliating loss to Zimbabwe in first ODI on Sunday 
  • Tayyab Tahir and leg-spinner Abrar Ahmed debut for Pakistan in second ODI 

BULAWAYO: Zimbabwe won the toss and elected to bat in the second one-day international against Pakistan on Tuesday.
Pakistan made two changes after Zimbabwe recorded a stunning 80-run win on DLS method in the rain-affected first match to lead the three-game series 1-0 on Monday.
Middle-order batter Tayyab Tahir and leg-spinner Abrar Ahmed were awarded ODI debuts in place of Haseebullah Khan and fast bowler Mohammad Hasnain.
Haseebullah got dropped after making 0 in his debut ODI while Hasnain made way for Abrar with the wicket expecting to slow bowlers.
Zimbabwe didn’t tinker with its winning combination after Pakistan struggled against both pace and spin in the first game.
Pakistan have rested its frontline white-ball players Shaheen Shah Afridi, Naseem Shah and Babar Azam as they tested bench strength ahead of next year’s Champions Trophy.
Bulawayo will host the third and final ODI on Thursday and will also host both teams in the three-match T20 series.


Belarus offers to share technology with Pakistan, import textiles in bid to enhance trade

Updated 39 min 54 sec ago
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Belarus offers to share technology with Pakistan, import textiles in bid to enhance trade

  • Belarus president is in Pakistan on three-day visit to discuss bilateral trade, investment
  • Both sides discussed investment, tourism and defense cooperation, says Shehbaz Sharif

ISLAMABAD: Belarus President Aleksander Lukashenko on Tuesday offered to share technology with Pakistan and buy the country’s textile products, with the two states reaffirming their resolve to turn bilateral agreements into “practical steps.”
Lukashenko arrived in Islamabad on Monday evening, a day after a 68-member delegation of his country reached Pakistan to hold discussions on bilateral trade and investment. The Belarusian president is in Islamabad as Pakistan pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the International Monetary Fund (IMF).
Lukashenko arrived at the Prime Minister House on Tuesday morning where he was received by PM Shehbaz Sharif and accorded a guard of honor. He held one-on-one talks with Sharif before the two sides also held delegation-level talks in the Pakistani capital.
“As I already said to my dear friend, the prime minister, that in the modern world not just big countries possess high technologies, sometimes mid-range or smaller countries also do just like Belarus,” Lukashenko said during a joint news conference with Sharif. 
“We have those technologies and I think Pakistan should develop relations with smaller countries which are ready to share their technologies and on the other hand, we would be very happy to buy from Pakistan what it has to offer to us, including textile and many other things,” he added.
Sharif said he was encouraged by Lukashenko’s “very inspiring” statements on putting agreements on trade and investment into action. He said both sides covered commerce, investment, tourism, defense cooperation and other important issues in the discussions. 
“All these areas will be discussed today immediately after this press conference between the two sides,” Sharif said. “And then they will depart to meet again in two weeks’ time in Minsk where the two teams will meet again and finalize and convert all these discussions into practical steps, arrangements ready for agreements.”
Sharif said in February 2025, he and the Belarusian president will sign the agreements to ensure practical work on them begins. 
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.


Pakistan eyes enhanced trade and connectivity with Belarus amid investment push

Updated 26 November 2024
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Pakistan eyes enhanced trade and connectivity with Belarus amid investment push

  • Belarus President Aleksandr Lukashenko is in Pakistan on three-day visit for investment, trade talks 
  • Islamabad is pushing for foreign investment from allies in a bid to shore up $350 billion economy

ISLAMABAD: Pakistan Privatization and Communications Minister Abdul Aleem Khan stressed launching direct flights to Belarus and enhancing trade with the eastern European country, state-run media reported this week, as its president arrived in Islamabad for a three-day trip to hold talks on bilateral trade and investment. 
Belarus President Aleksandr Lukashenko arrived in Pakistan on Monday following the arrival of his 68-member delegation, as Islamabad pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the IMF.
Khan met Belarusian Transport Minister Alexei Lyakhnovich with senior communication in the presence of sector officials from both countries on Monday to discuss the importance of enhancing connectivity through roads and railways, the Associated Press of Pakistan said. 
“Federal Minister for Communications, Privatization and Board of Investment Abdul Aleem Khan on Monday emphasized Pakistan’s commitment to enhancing connectivity through the launch of direct flights to Moscow and Belarus, alongside the development of trade corridors linking China, Afghanistan, Central Asia, and Belarus,” the APP reported.
The Belarusian transport minister described cross-border trade as “pivotal” for strengthening the economy and promoting bilateral relations, adding it was a significant step toward collaboration between both countries.
The pending construction of different motorways and highways also came under discussion with both sides agreeing to take steps in this regard, APP said.
Emphasizing the communication sector’s importance, Khan said Pakistan wanted a trade corridor to Central Asia along the Karakoram Highway and China-Pakistan Economic Corridor lines to promote business activities.
“We want to further enhance G2G and B2B activities with Belarus in the future for which both the countries will make serious efforts,” Khan said. 
“Like Azerbaijan and Turkiye, we also want to make Belarus an investment partner with our country as Pakistan is rich in natural resources and blessings of Allah Almighty while positive results can be achieved with our skilled workforce.”
On Tuesday, Lukashenko arrived at the Prime Minister House where he was welcomed by PM Shehbaz Sharif and presented with a guard of honor. 
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
The First Pakistan-Belarus Joint Economic Commission (JEC) was held in 2015 in which the two countries agreed to initiate joint ventures in the textile, pharmaceutical and lighting solution industries and share technological expertise.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.


After humiliating loss, Pakistan face Zimbabwe in second ODI today 

Updated 26 November 2024
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After humiliating loss, Pakistan face Zimbabwe in second ODI today 

  • Zimbabwe stunned Pakistan by 80-run win on Duckworth-Lewis Stern (DLS) method in first ODI
  • Skipper Mohammad Rizwan’s side will play three ODIs and three T20Is against Zimbabwe 

ISLAMABAD: Pakistan will take on hosts Zimbabwe in the second ODI today, Tuesday, at the Queens Sports Club in Bulawayo, after reeling from an embarrassing defeat in the first match last week. 
All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method on Sunday against a new-look Pakistan team. 
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.
“The second One-Day International of three match series between Pakistan and Zimbabwe will be played in Bulawayo on Tuesday,” state broadcaster Radio Pakistan reported. 
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
In the 15-member squad Arafat Minhas, Babar Azam, Naseem Shah and Shaheen Shah Afridi have been replaced with the uncapped duo of Abrar Ahmed and Ahmed Daniyal along with pacer Shahnawaz Dahani and Tayyab Tahir.
The match is scheduled to begin at 12:30 p.m. Pakistan Standard Time.


World Economic Forum says Pakistan now world’s sixth-largest solar market

Updated 26 November 2024
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World Economic Forum says Pakistan now world’s sixth-largest solar market

  • Pakistan’s “rapid adoption” of solar energy provides valuable lessons for emerging markets, says WEF
  • Says declining solar panel prices, skyrocketing electricity tariffs reasons for Pakistan pursuing solar energy

ISLAMABAD: Pakistan is now the sixth-largest solar market in the world and its “rapid adoption” of solar energy provides valuable lessons for emerging markets, a World Economic Forum report said this week as Islamabad tries to dodge rising fuel prices through renewable energy resources. 
Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, leading to blackouts and high electricity costs. 
Experts say Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. According to the World Bank, utilizing just 0.071 percent of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand.
According to the National Electric Power Regulatory Authority, currently, only 5.4 percent of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 percent of the fuel mix, followed by hydropower at 25 percent.
“The country is now the world’s sixth-largest solar market,” WEF said in its report published on Monday. “Declining solar panel prices, coupled with skyrocketing grid electricity tariffs that have increased by 155 percent over three years, are fueling a rush in renewable energy adoption in Pakistan, with solar power leading the way.”
The report highlighted that Pakistan’s move to adopt solar energy was driven by external factors such as China’s overproduction of solar panels, which had lowered the costs for Pakistan, making the country the third-largest destination for Chinese solar exports.
“Industrial, agricultural and residential sectors have embraced solar, with imported Chinese modules totaling 13 gigawatts (GW) in the first half of the year, and forecasts reaching 22GW by year-end,” the report said.
The WEF said the inability of state-owned energy providers to provide a stable supply and the government’s inconsistent energy policy characterized by ” inefficiencies in production, pricing and regulations” has deepened Pakistan’s energy crisis, aiding in the usage of solar energy.
“Grid electricity demand dropped by more than 10 percent in the past fiscal year as inflated tariffs burden consumers with covering inefficiencies,” the report added. “This trend has sparked a wave of solar adoption among industrial, commercial and private users who can afford self-generation.”
Supportive policies like offering credit for solar in off-grid areas and unbundling customer categories can also boost renewable energy adoption, it said. 
“Pakistan’s journey underscores the importance of balancing policy innovation with market adaptation to drive sustainable and equitable energy solutions,” the WEF report concluded.