Pakistan plans boosting monthly IT export remittances to over $1 billion

This photograph taken on November 19, 2015 shows Pakistani employees of an online marketplace company at work in Karachi. (Photo courtesy: AFP/File)
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Updated 19 February 2023
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Pakistan plans boosting monthly IT export remittances to over $1 billion

  • Government allows freelancers, IT companies to retain 35 percent of proceeds, outward remittances for business development
  • Industry representative says private banks not providing internet banking, debit cards to professionals for payments abroad

ISLAMABAD: Pakistan's government is planning to boost the country’s monthly information and technology (IT) export remittances to over $1 billion from the current $220 million figure by offering incentives to professionals and freelancers, a consultant for the IT ministry confirmed on Sunday.

As many as 650,000 Pakistanis have been exporting their IT services to different countries around the globe, either through freelance work or different IT companies. This has helped these companies earn around $200-250 million per month in export remittances to the country.

Pakistan’s total IT export remittances were recorded at $2.6 billion last year. For the current fiscal year, the government has set a target of $4 billion.

Faced with a host of economic crises, Pakistan's foreign reserves have fallen to alarmingly low levels. The country's rupee has also faced massive depreciation over the past year as experts warn it could face a balance-of-payments crisis.

IT companies and freelancers in Pakistan have been urging the government to allow them to retain at least 35 percent of their proceeds in their foreign currency accounts and utilize them abroad if and when required for business development purposes.

In a bid to attract more inflows of remittances into the country, the government has agreed to the demand.

“A long-standing demand made by IT professionals and freelancers has been met, and now we hope this will help us boost the sector’s monthly remittances to over $1 billion,” Ali Kazim, a media consultant working for the Ministry of Information Technology, told Arab News on Sunday.

In absence of the facility to retain dollars in their accounts, freelancers, companies, and IT professionals had to open bank accounts in different countries including the UK, the U.S., and the UAE to receive payments.

“The majority of IT companies and freelancers were not getting their remittances in Pakistan, but now the trend would change with the provision of a 35 percent retention facility,” he said.

Kazim added the execution and implementation of this 35 percent retention facility for remittances would be fully operational in the next two to three months and that the State Bank of Pakistan has already issued directives to all public and private banks to implement the policy.

However, the Pakistan Software Houses Association for IT and ITES (P@SHA) doubted the facility would be fully implemented, saying that Pakistani banks were still creating hurdles in opening foreign currency bank accounts and issuing debit cards.

“The facility would remain useless unless banks allow internet banking and issue U.S. dollars enabled debit cards to freelancers and companies for instant outward remittances,” Mohammad Zohaib Khan, chairman P@SHA, told Arab News.

He said banks have so far refused to allow outward remittances through debit cards and internet banking citing the shortage of U.S. dollars in the country.

“If IT companies and freelancers are not provided the required facilities and incentives, the required growth in the industry would remain elusive,” he said.

Khan added that if trust in the Pakistani banking system was developed, this would take two to three years to boost IT exports to over $4 billion.


Bosch, Jansen put South Africa on top against Pakistan

Updated 7 sec ago
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Bosch, Jansen put South Africa on top against Pakistan

  • Bosch, batting at number nine, enabled South Africa to take a 90-run first innings lead
  • Bowlers made it count by taking three wickets before Pakistan could wipe out the deficit

CENTURION: Debutant Corbin Bosch hit 81 not out and left-arm fast bowler Marco Jansen claimed two late wickets as South Africa took control on the second day of the first Test against Pakistan at SuperSport Park on Friday.
Bosch, batting at number nine, enabled South Africa to take a 90-run first innings lead — and the bowlers made it count by taking three wickets before Pakistan could wipe out the deficit.
Pakistan finished the day on 88 for three — still two runs behind.
South Africa would qualify for next year’s World Test Championship final for the first time with a victory in either match of this two-Test series.
The contest was evenly poised when opening batsman Aiden Markram was eighth man out for 89 with South Africa on 213 for eight — just two runs ahead of Pakistan’s first innings total of 211.
Four South African wickets had fallen for 35 runs either side of lunch, with Naseem Shah taking three in a fiery spell, and it seemed probable the sides would start the second innings almost on level terms.
But Bosch, who has a first-class batting average above 40, batted with freedom and a wide variety of strokes as he shared stands of 41 with Kagiso Rabada (13) and 47 with Dane Paterson (12) to turn a narrow lead into a substantial one.
Bosch hit 15 fours in a 93-ball innings.
“It was a huge momentum shift and it was probably worth more than a hundred,” said Markram, who captained Bosch and Rabada when South Africa won the Under-19 World Cup in Dubai in 2014.
It was the continuation of a remarkable debut for Bosch, 30, who took four for 63 in the first innings and was clocked at 147kmh, the fastest of any bowler in the match.
Bosch, whose Test cricketer father Tertius died when Corbin was five years old, was low on the list of potential Test fast bowlers at the start of the season.
But a lengthy list of injuries to bigger-name players, as well as good recent form, opened the door for him.
“He’s a really talented guy and in the last few years he’s really put his head down and worked to get his opportunity,” said Markram.
Bosch shared the new ball with Kagiso Rabada at the start of Pakistan’s second innings but did not take a wicket and left the field at the end of a three-over stint.
Saim Ayub and Shan Masood, who both made 28, put on 49 for the first wicket before Rabada bowled Ayub.
Jansen followed up by having Masood caught at third slip and first innings top-scorer Kamran Ghulam caught at gully for eight before bad light stopped play.
Markram said it was a typical Centurion pitch, providing assistance for the fast bowlers.
“While I was batting it did feel that at any time the ball could nip past your edge,” he said.
Markram cautioned South Africa would need to bowl well to press home their advantage on Saturday.
“If you’re not going to land the ball in the right areas it’s still going to be nice to bat on,” he said.


Pakistan’s deputy PM praises late Manmohan Singh for fostering regional peace

Updated 45 min 18 sec ago
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Pakistan’s deputy PM praises late Manmohan Singh for fostering regional peace

  • Ishaq Dar says former Indian premier relied on dialogue and believed in collective progress
  • Deputy PM’s statement comes at a time of strained diplomatic ties between India and Pakistan

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Friday expressed grief over the death of former Indian Prime Minister Manmohan Singh, praising his leadership for prioritizing dialogue and mutual understanding to address regional issues, which improved ties between the two nuclear-armed rivals.
Singh, an economist and the first Sikh to serve as India’s premier, passed away on Thursday at the age of 92. Born in Gah, a village in what is now Pakistan’s Chakwal district, Singh’s family migrated to India following the partition in 1947.
He studied at Oxford and Cambridge, earning recognition as a scholar before spearheading economic reforms that lifted India out of a financial crisis in the early 1990s.
“His approach to regional issues reflected his belief that mutual understanding, dialogue, and cooperation were essential for collective progress,” Dar said in a social media post on X, formerly Twitter. “He played a notable role in improving Pakistan-India bilateral relations during his tenure as Prime Minister.”


He added “the people and the Government of Pakistan extend their heartfelt condolences to Dr. Manmohan Singh’s family, and to the people and the Government of India.”
The deputy prime minister’s statement comes at a time of strained diplomatic ties between India and Pakistan, with both countries having downgraded their bilateral relations in 2019 following India’s revocation of Jammu and Kashmir’s special constitutional status.
Regular border skirmishes and accusations of cross-border militancy have further exacerbated tensions.
Singh is widely regarded as a key architect of India’s economic liberalization, credited with steering the country through a severe balance-of-payments crisis in 1991 as finance minister.
His tenure as prime minister was characterized by steady economic growth and efforts to improve relations with neighbors, though his critics cite challenges in domestic and foreign policy toward the end of his term.


Pakistan installs first smog cleaning tower in Lahore for field testing

Updated 27 December 2024
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Pakistan installs first smog cleaning tower in Lahore for field testing

  • Lahore, Pakistan’s second-largest city, often ranks among the most polluted places in world
  • Smog towers are large-scale air purifiers that create localized zones of improved air quality

ISLAMABAD: Pakistan has installed its first locally designed smog cleaning tower in Lahore, a city that frequently ranks among the most polluted in the world during the winter season, the Environmental Protection Agency of Punjab announced this week.
Smog towers are large-scale air purifiers designed to reduce pollution by filtering out fine particulate matter and other harmful pollutants. Using fans, the towers draw in polluted air, which passes through high-efficiency filters to capture PM2.5 and PM10 particles, which pose severe health risks. The cleaned air is then released back into the surrounding area, improving local air quality.
While smog towers offer potential short-term relief, their efficacy in addressing large-scale urban air pollution remains debated.
“Pakistan’s first locally designed Smog Cleaning Tower installed in Lahore,” the provincial environmental agency said in a social media post this week. “A 15-day field test will be conducted to assess its performance for further installations.”

 
The smog tower, located in Mehmood Booti, is capable of purifying 50,000 cubic meters of air per hour and is designed to reduce harmful PM2.5 particulate matter.
Lahore, Pakistan’s second-largest city, suffers from severe air pollution during the winter, largely due to the phenomenon of smog. A combination of vehicle emissions, industrial output and crop burning in Punjab contributes to hazardous levels of fine particulate matter, with the city often topping global rankings for poor air quality.
Residents endure weeks of poor visibility, health warnings and respiratory illnesses as the Air Quality Index (AQI) frequently exceeds 300, categorized as “hazardous” by international standards. This year, the AQI reached unprecedented levels in several cities of Punjab, rising well over 1,000.
Smog towers can create localized zones of improved air quality, especially in high-density urban areas. However, they are expensive to build and maintain, with limited coverage areas.


Imran Khan says he declined house arrest, urges overseas Pakistani to halt remittances

Updated 27 December 2024
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Imran Khan says he declined house arrest, urges overseas Pakistani to halt remittances

  • Ex-PM’s social media post hints at a backchannel offering him a ‘deal,’ without naming interlocutors
  • Khan criticizes military trials and sentencing of supporters, says the proceedings violated basic rights

ISLAMABAD: Former Prime Minister Imran Khan, who has been in jail for well over a year, said in a social media post on Friday he rejected a house arrest deal, as he also urged Pakistanis abroad to boycott remittances in protest against the country’s political situation.
Khan’s statement comes only a few days after the government began formal negotiations with his Pakistan Tehreek-e-Insaf (PTI) party to address mutual differences and ease the country’s growing political polarization.
Talks began after Khan threatened civil disobedience, urging overseas Pakistanis to halt remittances unless the government freed PTI political prisoners and formed judicial commissions to probe violent protests on May 9 and Nov. 26, blamed on his supporters.
His latest message hints at a backchannel offering “a deal,” without naming interlocutors.
“The proposal I received for a deal was: ‘Negotiate with us, and we will give your party political space, but you will be placed under house arrest and moved to [your] Bani Gala [residence],’” read a message posted from Khan’s account on X, formerly Twitter.
“My response was that all other political prisoners must first be released. I would rather stay in jail than accept any deal. I will neither go into house arrest nor to any jail in Khyber Pakhtunkhwa,” he added, referring to the province ruled by his party.
Khan doubled down on his call for overseas Pakistanis to boycott remittances, framing it as part of a campaign for “true freedom and the restoration of democracy.” It is not clear how his stance might affect the ongoing negotiations between his party and the government.
“Currently, the government is playing ‘committee after committee’ regarding our demands,” he said, adding that the boycott campaign would be halted if negotiations produced positive results.
Khan also assured his supporters that the coming year would bring better prospects for democracy in the country while pledging to remain steadfast.
Criticizing military trials and recent sentencing of his party supporters arrested in the wake of the May 9 protest last year, Khan said they had violated basic rights of civilians and caused international embarrassment for Pakistan.
“If these trials had been conducted in open courts, the video footage of the events of May 9 would have had to be presented,” he said, adding transparent trials were also guaranteed in Pakistan’s constitution.
Hundreds of people carrying flags of Khan’s party attacked government and military installations last year on May 9 after he was briefly detained on corruption charges.
The government is yet to react to the former premier’s statement.


Pakistan using dual approach of diplomacy, military action against Afghan-based militants — analysts

Updated 27 December 2024
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Pakistan using dual approach of diplomacy, military action against Afghan-based militants — analysts

  • PM Sharif says cross-border attacks from against civilians, security forces ‘unacceptable’ for Pakistan
  • An Afghan analyst believes Pakistani airstrikes in his country can create sympathy for groups like TTP

KARACHI: Pakistan is using both political engagement and military action to counter militant groups operating from Afghanistan, analysts said on Friday, after Afghan authorities reported airstrikes conducted by Pakistani forces this week that killed 46 people.
The strikes, which targeted alleged hideouts of the banned Tehreek-e-Taliban Pakistan (TTP), came amid allegations by Pakistani officials of cross-border militant attacks, as extremist violence targeting civilians and security forces has surged more recently.
Afghan authorities claimed the victims included residents from Pakistan’s border regions, who were uprooted during military operations against TTP fighters in recent years, as the United Nations expressed concern over civilian casualties and urged an investigation.

Residents gather near a damaged house two days after air strikes by Pakistan in the Barmal district of eastern Paktika province on December 26, 2024. (AFP)

While Pakistan has not officially confirmed the airstrikes, with both the foreign office and the military’s media wing declining to comment, Prime Minister Shehbaz Sharif said the TTP cross-border attacks constituted a “red line” for his government, asking Afghan authorities to take action against militants using their soil.

The reported airstrikes coincided with a visit to Kabul by Mohammad Sadiq, Pakistan’s special representative for Afghanistan, to discuss trade and regional ties.
“It seems that Pakistan wants to continue to talk to the Taliban while also flexing its military muscle, just as the Taliban did once they engaged in talks with the US,” Husain Haqqani, a former Pakistani ambassador, told Arab News.
He maintained that Pakistan’s military leadership believed its past support for the Afghan Taliban, when the US-led international forces were still operating in Kabul, would shield it from violent attacks, adding these armed groups did not consider any Muslim country “exempt from imposition of their extreme ideology.”
However, Sami Yousufzai, an Afghan political analyst, highlighted the delicate nature of Pakistan-Afghanistan ties, saying such strikes were viewed as a direct affront by Kabul.

A Taliban security personnel stands guard at the site two days after airstrikes by Pakistan in the Barmal district of eastern Paktika province on December 26, 2024. (AFP)

“Afghanistan is particularly sensitive to invasions or attacks within its borders,” he told Arab News, acknowledging that the airstrikes resulted from growing pressure on Pakistan due to the surge in TTP attacks.
However, he maintained Pakistan had made errors of judgment relating to the timings of the attack, as one of its senior diplomats, Ambassador Sadiq, was in Afghanistan, and the number of civilian casualties.
Yousufzai informed that Afghan authorities had recently taken confidence-building measures at Pakistan’s request by relocating 200 TTP families from border areas to central Afghanistan, adding that the move had been undermined by the airstrikes.
“Afghanistan has little to lose, but as a more stable nation, Pakistan should avoid irresponsible actions,” he continued. “Such attacks will not eliminate the TTP. Instead, it will likely increase their support.”
He maintained the real issue was the TTP presence in Pakistan, adding that its fighters were even residing in districts like Bannu and Dera Ismail Khan, which do not share border with Afghanistan, though they have experienced several deadly attacks.

A Taliban security personnel keeps watch from a helicopter two days after air strikes by Pakistan in the Barmal district of eastern Paktika province on December 26, 2024. (AFP)

Mehmood Jan Babar, a Peshawar-based journalist specializing in Afghan and tribal affairs, argued the strikes did not derail diplomacy, as evidenced by continued meetings between Sadiq and Afghan officials, including Taliban Foreign Minister Amir Khan Muttaqi.
Asked about Afghan warning of consequences to Pakistan, he said: “Such speeches and statements are often for public consumption.”
Syed Khalid Muhammad, a security expert in Islamabad, dismissed the claims of civilian casualties, arguing that militants deliberately use civilian populations as shields.
“The key thing to understand about the Pakistani airstrikes on the TTP is that the militants have hidden themselves among the civilian population, much like every terror group globally, which serves a greater purpose for them,” he added. “It allows them to manufacture an alternative narrative to gain sympathy.”

Residents gather near a damaged house two days after air strikes by Pakistan in the Barmal district of eastern Paktika province on December 26, 2024. (AFP)

Meanwhile, Pakistani military’s spokesperson Lt. Gen. Ahmed Sharif Chaudhry said his country had repeatedly pointed out to the Afghan government on state level that the TTP and other militants had been launching cross-border attacks in Pakistan in a news conference earlier today.
“Pakistan will leave no stone unturned in dismantling terrorist networks and safeguarding its citizens against terrorism,” he told the media without confirming the airstrikes.