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Businesses in Pakistan bear the brunt of mobile internet suspension amid protests

Pakistani staff of Islamabad-based Power 99 FM radio work on their computers at the radio station's office in Islamabad on July 26, 2016. (AFP/File)
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Updated 13 May 2023
Khurshid Ahmed
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Businesses in Pakistan bear the brunt of mobile internet suspension amid protests

  • Ride hailing and online delivery services face huge disruptions as riders and customers experience delays, cancelations
  • Mobile network operators urge the government to review its policy since their financial losses have jumped to $8.3 million
Updated 13 May 2023
Khurshid Ahmed

KARACHI: The nationwide suspension of mobile Internet has had an enormous impact on the business activities of Pakistani companies providing ride-hailing and online delivery services along with financial sector organizations facilitating clients through electronic transactions, confirmed various stakeholders on Friday.

The government suspended mobile Internet following the arrest of former prime minister Imran Khan on charges of corruption on Tuesday, which led to violent protests in most major urban centers. According to the Pakistan Telecommunications Authority, the country has 52.79 percent mobile broadband penetration with 125 million subscribers.

The shutdown of mobile Internet impacted businesses and individuals who depend on digital apps, such as Bykea, Careem, InDrive, FoodPanda and others, making it difficult for thousands to continue their income stream.

“It is a tough situation,” Rafiq Malik, Bykea’s chief operating officer, told Arab News. “It is obvious that no driver can work without mobile Internet. It is a full shutdown.”

Bykea brought livelihood opportunities for low-income groups by enabling a crowdsourced network of motorbike owners to transport individuals, parcels, on-demand shopping and payments within various Pakistani cities.

“We normally do over 100,000 transactions per day,” Malik continued, “but for the last couple of days, not even 500 transactions have been made.”

He said that thousands of riders and their families were suffering financially due to the prevailing situation.

A spokesperson from Careem, a ride-hailing service, said the suspension of Internet had severely impacted its business across Pakistan.

“Since ride-hailing services rely on the Internet, its suspension hurts both customers who rely on it daily to get to school, work, and meet other appointments, and also the hundreds of thousands of hardworking drivers who use the platform to earn their livelihood and support their families,” the spokesperson said.

Mobile Internet shutdown has also had a significant impact on food and other online delivery services.

“The impact is around 70 percent,” Hassan Arshad, who works as a director with FoodPanda, told Arab News. “However, we are encouraging our riders to use Internet services at our hubs, partnering restaurants, and at our offices to mitigate the impact of the Internet service suspension.”

The retail sector has also been affected by the current political turmoil, suffering a revenue decline of around 60 percent.

Rana Tariq Mehboob, Chairman of Chainstore Association of Pakistan (CAP), a representative body of the country’s over 200 brands that operate over 20,000 outlets across Pakistan, said: “The online and related business has almost come to a standstill. The retail sales have declined by 60 percent in terms of revenue due to lower footfall, while the business in areas affected by violence has completely shut down.”

Habib Bank Limited (HBL), which processes over 30 percent of the entire throughput of the Point of Sales (POS) machines in Pakistan, experienced a decline in transactions in recent days.

“Over the past few days, we have seen that throughput has declined by over 60 percent,” said Ali Habib, HBL spokesperson, on Friday. “This is a function of shops/markets operating intermittently and the disrupted Internet connectivity affecting the functioning of the POS machines.”

With the deployment of security forces and improvement in the law-and-order situation in parts of the country, however, POS transactions through digital means have also improved.

The overall volume of transactions carried out through 1Link, which is among Pakistan’s largest payment system operators, declined by 21 percent on May 11, when compared with the average volume in the first seven days of the month.

On May 10, the transactions were down by 29 percent.

The volume of ATM transactions was down by 10 percent on May 11, compared to 17 percent recorded on May 10. The transactions were down by 47 percent on the International Payment Scheme (IPS) POS and 52 percent on PayPak POS on May 10, according to the data shared by 1Link with Arab News on Friday.

However, the volume of transactions was 33 percent down from the average of normal days on IPS but further declined to 58 percent for PayPak POS transactions compared to the average number of transactions from May 1-7.

The continued shutdown of mobile Internet services has also caused huge financial losses to mobile phone operators in Pakistan. According to estimates, the losses since Tuesday’s shutdown have increased to Rs2.45 billion ($8.3 million) by Friday.

The GSM Association, which represents the interests of mobile network operators worldwide, approached the government of Pakistan over the Internet shutdown. In a letter to Syed Amin UI Haque, the IT minister, the GSMA emphasized the importance of connectivity for individuals and businesses in today’s digital societies.

The GSMA letter reads: “Prolonged restrictions can also have far-reaching effects on citizens’ health, education, social and economic welfare. In addition to the harm imposed on businesses, restrictions can have a knock-on effect on credit and investment plans, ultimately damaging the country’s reputation for managing the economy and foreign investment.”

The GSMA discouraged the use of service restriction orders and urged the government to lift the suspension of services and restore access as soon as possible.

Aamir Ibrahim, the chief executive officer of the largest mobile phone operator Jazz in Pakistan, emphasized the critical role of mobile broadband in the digital ecosystem and its impact on productivity across all sectors.

“The suspension has devastating effects on the economy and people’s lives,” he said in a statement to Arab News. “The disruption not only limits their ability to communicate with friends and family, but it also deprives 125 million Pakistanis of access to essential services such as education, health care, and commerce, which are critical for their well-being.”
 

Topics: Internet Mobile networks

Pakistan rejects sole $36 million bid for national flag carrier

Updated 16 sec ago
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Pakistan rejects sole $36 million bid for national flag carrier

  • Blue World City, a real estate development company, last month bid $36 million for state-owned PIA airline
  • Pakistan seeks to offload 51-100% stake in national airline to reform state-owned enterprises as per IMF deal
Updated 16 sec ago
Shahjahan Khurram

ISLAMABAD: Pakistan’s Cabinet Committee on Privatization (CCOP) this week rejected a $36 million bid from a real estate development company to acquire 60 percent stakes in the government-owned Pakistan International Airlines (PIA), state-run media reported. 
Pakistan’s process to privatize the PIA encountered difficulties last month when its final bidding round for the national flag carrier attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the airline. The bid was made by real estate development company Blue World City. 
The cash-strapped country is looking to offload a 51-100 percent stake in the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program. 
A meeting of the CCOP chaired by Deputy Prime Minister Ishaq Dar on Friday discussed Blue World City’s bid and the Privatization Commission’s (PC) suggestion to reject it. 
“The Cabinet Committee on Privatization (CCOP) rejected the bid of Rs10 billion submitted by the Blue World City for the divestment of 60 percent shares of the Pakistan International Airlines, accepting the recommendations of the Privatization Commission Board,” the state-run Associated Press of Pakistan (APP) reported on Friday.
The CCOP reiterated the government’s resolve to divest the national flag carrier through privatization or government-to-government (G2G) mode. 
“The body noted with satisfaction the assessment of the aviation division on healthy PIACL’s finances,” APP said. 
Pakistan’s government disclosed last year that it had signed a contract with the New York City administration to resume business activities at the Roosevelt Hotel, which is owned by the PIA. 
The hotel was closed by Pakistani authorities in October 2020 during the coronavirus pandemic, as the country’s economy weakened and the aviation sector faced significant losses. However, the facility accumulated liabilities of around $25 million in taxes and other overheads.
“The committee also constituted a committee under the convenorship of the minister of state for finance to evaluate possible transaction options for the privatization of Roosevelt Hotel and modes to be adopted in the light of available legal provisions,” APP said. 
Pakistan’s Khyber Pakhtunkhwa (KP) province and a business group in Canada led by a Pakistani expat have both expressed their interest in acquiring the national flag carrier. 
The government had pre-qualified six groups for PIA’s privatization process in June, but only real-estate development company Blue World City participated in the bidding process last month, placing a bid that was below the government-set minimum price of Rs85 billion ($304 million). 
The disposal of PIA is a step former governments have steered away from, as it has been highly unpopular given the number of layoffs that would likely result from it.
Other concerns raised by potential bidders for the PIA stake included inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.

Topics: PIA privatization Pakistan International Airlines (PIA)

IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring

Updated 31 min 15 sec ago
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IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring

  • The international lender says budget processes still involve manual and paper-based steps despite reforms
  • IMF has pointed out Pakistan’s interest payments absorb 60 percent of budgeted revenue due to public debt
Updated 31 min 15 sec ago
Aamir Saeed

ISLAMABAD: The International Monetary Fund (IMF) has suggested Pakistan to digitalize its budget preparation and execution processes to improve fiscal monitoring and reporting to overcome deviations from the planned budgets.
In report a technical assistance report to improve budget practice brought out this week, the international lender said Pakistan needed to take strong control over the budget in the coming years.
The report came as an IMF delegation led by Pakistan mission chief, Nathan Porter, completed a five-day trip to the country in which it discussed the performance of a $7 billion loan program approved in September. The IMF has said Porter’s visit is not part of the first review of the loan program, which is not scheduled to take place before the first quarter of 2025.
“An examination of Pakistan’s recent budgetary outcomes reveals substantial deviations from planned budgets,” the lender said in the report. “While these discrepancies are partially due to an unstable external environment and political uncertainties, the establishment of stronger fiscal institutions can help deliver a more credible budget, tighten its execution, and prevent policy slippages.”
The IMF pointed out that despite several reforms, the budget processes still involved significant manual and paper-based steps.
“Fully digitalized processes are yet to be prepared and implemented in the Financial Accounting and Budgeting System,” it said in the report. “The Finance Division has designed a data warehouse to store fiscal data and made available a set of dashboards for use by stakeholders, but this is hampered by the lack of timely data provided by some key entities. As a result, fiscal reporting is not yet comprehensive and timely.”
It added that regulatory framework and fiscal data governance practices, including data exchange, did not fully address these challenges.
The IMF also noted Pakistan’s public debt had increased considerably, and interest payments were now absorbing 60 percent of budgeted revenue.
However, it recognized that multiple external shocks and the unprecedented floods in 2022 buffeted the economy and the government’s fiscal position.
“These shocks have been compounded by policy slippages including unbudgeted subsidies, and delays in implementing revenue measures,” it continued, adding the authorities now had the difficult task of converting a primary deficit of 1.3 percent of GDP for FY23 into a primary surplus for FY24. It also emphasized continued fiscal restraint, while preserving essential social and development spending.
The international lender suggested the finance division to require line ministries to prepare their budget submissions within a binding budget ceiling and explain any request for additional resources.
“Consider a reorganization of the Finance Division to reduce fragmentation and improve effective decision-making,” the reported suggested. “Support the reorganization with a functional review of the Division’s structure and staffing.”

Topics: Pakistan IMF Talks Pakistan budget Pakistan IMF IMF bailout measures

WHO, Pakistani officials cite ‘immunity gap’ as key factor behind surge in polio cases

Updated 39 min 28 sec ago
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WHO, Pakistani officials cite ‘immunity gap’ as key factor behind surge in polio cases

  • WHO official says resurgence developed over time due to ‘compromised campaign quality’
  • Pakistan has reported 49 cases this year, mostly from Balochistan and Khyber Pakhtunkhwa
Updated 39 min 28 sec ago
Aamir Saeed REHMAT MEHSUD & SAADULLAH AKHTER

ISLAMABAD, PESHAWAR, KARACHI: The World Health Organization (WHO) and Pakistani officials have identified “immunity gap” as a key factor behind the resurgence of polio in the country, as Pakistan on Friday reported its 49th case this year from the southwestern Balochistan province.
Polio is a highly contagious disease that can cause irreversible paralysis, particularly in young children, and remains incurable, posing a persistent threat as long as the virus is not eradicated.
Most cases in Pakistan have emerged from the conflict-hit Khyber Pakhtunkhwa and Balochistan provinces. Along with neighboring Afghanistan, Pakistan remains one of the last two countries in the world where polio is endemic. After significant progress in reducing cases, Pakistan has seen a resurgence since late 2018, underscoring the fragility of earlier gains.
Health officials explain that an “immunity gap” occurs when a large segment of the population lacks sufficient resistance to the poliovirus, leaving communities vulnerable to infection and outbreaks despite immunization efforts.
“The ongoing transmission and resurgence of the poliovirus was largely attributed to a widespread immunity gap that has developed over time,” WHO spokesperson Maryam Younas told Arab News.
She attributed this “to a compromised campaign quality because of security-related challenges, community resistance, boycotts and demands of local communities, suboptimal routine immunization coverage and internal displacement of mobile and migrant populations.”
Younas added high-quality vaccination campaigns were needed to bridge the immunity gap, highlighting that the WHO had organized back-to-back large-scale campaigns in September and October that vaccinated around 45 million children.
“These will follow another campaign in December to effectively plug the immunity gap,” she said. “The mobile and migrant populations were redefined and mapped with revitalized focus on their vaccination.”
Health officials from the restive Khyber Pakhtunkhwa and Balochistan provinces also echoed the same concerns, saying that immunity gaps played a major role in the resurgence of poliovirus.
KP’s Special Health Secretary Abdul Basit said the provincial government was undertaking efforts to “plug remaining immunity gaps” from the region by ensuring timely immunization of children.
A tribal elder from South Waziristan, Malik Anwar Wazir, told Arab News the increasing number of polio cases raised question about the government’s polio eradication efforts. He termed the decades of infighting and unrest in parts of KP and tribal areas responsible for “inconsistent health care initiatives.”
“Mass exodus or displacement of families because of militancy hinder vaccination drives,” he added. “Most of the families in the tribal belt and parts of KP move for safer areas due to constant war, which creates problems for full immunization dose.”
Dr. Aftab Kakar, a health official in Balochistan, said international donors funding Pakistan’s polio eradication program had expressed concerns and given the authorities in the province new targets to prevent poliovirus transmission by June 2025.
“After being declared a polio-free province for almost years, we received the first transmission of poliovirus from Kandahar [Afghanistan] in September 2023,” he said. “If our children were immunized and well nourished, the virus would not have survived and spread all over the province.”
This year, 24 polio cases have been reported in Balochistan, 13 in Sindh, 10 in Khyber Pakhtunkhwa and one each in Punjab and the federal capital, Islamabad. In the early 1990s, Pakistan recorded approximately 20,000 cases annually, but the number dropped to eight in 2018, six in 2023 and only one in 2021.
Pakistan’s polio eradication program, launched in 1994, has significantly reduced the number of cases over the years. However, the country continues to face major challenges, including militancy, with polio workers frequently targeted in attacks, particularly in the northwestern Khyber Pakhtunkhwa province.
The program has adapted to address climate disasters, such as floods, but continues to experience disruptions. Additionally, there are gaps in supplementary immunization activities, particularly in areas where the virus remains active.

Topics: Pakistan Polio Service

Pakistan, Egypt discuss trade and investment on sidelines of Sir Bani Yas Forum

Updated 15 November 2024
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Pakistan, Egypt discuss trade and investment on sidelines of Sir Bani Yas Forum

  • Both countries have strengthen bilateral ties in recent years, with Pakistan mostly focusing on Gulf states
  • Egypt and Pakistan commemorated 75 years of diplomatic ties last year by issuing a joint postage stamp
Updated 15 November 2024
Arab News Pakistan

ISLAMABAD: Pakistan and Egypt on Friday discussed enhanced economic cooperation in various areas as Deputy Prime Minister Ishaq Dar met Egyptian Foreign Minister Badr Abdelatty on the sidelines of the 15th Sir Bani Yas Forum held in the United Arab Emirates (UAE).
The three-day annual retreat, running from November 15 to 17, has brought together top decision-makers and experts from around the world to debate pressing Middle Eastern issues, including regional peace, security and economic transformation.
Dar was invited to the forum by his UAE counterpart, Sheikh Abdullah bin Zayed Al Nahyan, according to Pakistan’s foreign office.
The Pakistani deputy prime minister’s meeting with the Egyptian foreign minister was reported by the state-owned Associated Press of Pakistan (APP) news agency.
“During the meeting, they discussed Pakistan-Egypt cooperation and dialogue to promote bilateral trade, investment, and tourism,” it said.
Pakistan and Egypt have actively sought to strengthen their bilateral relations in recent years, though Islamabad has mostly focused on strengthening its economic relations with the Gulf countries.
Last year in August 2024, both nations commemorated 75 years of diplomatic ties by issuing a joint postage stamp, symbolizing their enduring partnership and mutual commitment to future collaboration.

Topics: Pakistan Egypt ties Sir Bani Yas Forum Ishaq Dar Foreign minister Ishaq Dar

Riyadh to host first fashion exhibition for Pakistani designers, raising hopes for collaboration

Updated 15 November 2024
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Riyadh to host first fashion exhibition for Pakistani designers, raising hopes for collaboration

  • The fashion exhibition will kick off on Saturday, featuring renowned names like Deepak Perwani and HSY
  • Organizers say 80 percent of designers are from Pakistan, while the rest will participate from India and UAE
Updated 15 November 2024
BURAQ SHABBIR

KARACHI: Riyadh will host its first-ever fashion exhibition spotlighting Pakistani designers on Saturday, with organizers saying the event will pave the way for stronger cultural and creative ties between Saudi Arabia and Pakistan.
The inaugural Riyadh Fashion Couture 2024, scheduled for November 16, is the brainchild of co-founders Sharmeen Ehsan, Ayesha Mohsin and Adnan Bashir Khan, who bring decades of experience in event management.
The exhibition will showcase emerging and established designers, with 80 percent of participants from Pakistan and the remainder from India, the United States, Dubai and Saudi Arabia.
Organizers hope the initiative will foster greater collaboration between the Pakistani and Saudi fashion industries.
“The purpose of hosting a Pakistani designers’ exhibition in Riyadh is to foster cultural exchange, promote the rich heritage of Pakistan, and create a platform for collaboration between the fashion and design industries of both nations,” Ehsan said while speaking to Arab News on Friday.
“For the first time, Riyadh will host a curated exhibition majorly featuring Pakistani designers, offering a fresh perspective on fashion and design from a region that has traditionally been underrepresented in the Saudi fashion scene,” she said, adding a majority of designers will be from Pakistan.
The designer lineup from Pakistan features renowned names such as Deepak Perwani, HSY, Agha Noor, Sadaf Amir, Maliha Studio, Anam Akhlaq and Komal Lakhani, among others.
Indian designers include Pam Mehta, Asma Gulzar, and Vibha Jewel, specializing in bridal couture and semi-formals.
“This exhibition will provide employment opportunities for local models, makeup artists and local designers,” Ehsan said.
“It will be a groundbreaking event for Riyadh, as it marks the first-ever showcasing of contemporary Pakistani design talent in the city,” she continued. “It will set the stage for future collaborations and growth in an emerging Middle Eastern fashion scene which has huge potential to grow.”
One of Pakistan’s most prominent designers, Deepak Perwani, who is already in Saudi Arabia for the exhibition, said this was the first time he was taking his collection to Riyadh.
“We have been showing in Dubai, Doha and Bahrain all the time but this is the first time we are doing it in Riyadh,” he told Arab News.
“I am sure there will be a market,” he added. “There is always a first time to try. There is a massive Pakistani and Indian population there. We are open to all diasporas but primarily I’m assuming it will be Pakistani diaspora who will come to us because they already know us.”
Perwani informed he will be exhibiting the winter collection, evening wear and semi-formal wear for the upcoming shadi and festive season.
Pakistani actress Sajal Aly, known for her role in the recently concluded and critically acclaimed drama serial “Zard Patton Ka Bunn,” will serve as the guest of honor at Riyadh Fashion Couture 2024.
“Riyadh is an emerging market and a burgeoning fashion hub with immense growth potential,” the event’s co-founder Ehsan said. “This exhibition will serve as a unique opportunity to showcase creativity, craftsmanship and innovation of Pakistani designers in various fields, including fashion, textiles, jewelry, interior design and accessories.”
 

Topics: fashion show Pakistan Saudi Arabia ties Pakistan Saudi Ties

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