Pakistan’s digital footprint gains momentum with rising e-banking, PoS transactions — central bank

This photograph taken on March 4, 2015 shows a Pakistani resident waiting to withdraw currency from an ATM in Islamabad. (AFP/File)
Short Url
Updated 29 May 2023
Follow

Pakistan’s digital footprint gains momentum with rising e-banking, PoS transactions — central bank

  • During Q3 FY23, e-banking transactions increased by 4.3% in volume, 11.2% in value
  • Around 81% of all debit card holders in Pakistan are male while only 19.2% are female

KARACHI: The volume and value of digital transactions in Pakistan continue to grow, with the South Asian country witnessing an expanding digital footprint as it pushes for the digitalization of its payment systems, the central bank said on Monday.

Increasing collaboration between banks and fintech companies has provided efficient, accessible and user-friendly digital payments platform for customers, allowing a greater number of customers to use digital channels to make payments, the State Bank of Pakistan said in its third quarterly review of Payment Systems for Fiscal Year 2022-23, which covers the January-March 2023 period.

Pakistan’s central bank expects migration to electronic means will boost Pakistan’s GDP by 7%, create four million jobs, and result in new deposits of $263 billion and represent a potential market of $36 billion by 2025.

“Adoption and acceptance of digital instruments has been increasing steadily,” the central bank report, released on Monday, said.  

During the third quarter of fiscal year 2023, overall e-banking transactions increased by 4.3% in terms of volume and 11.2% in terms of value. Internet and mobile phone banking transactions also grew in volume by 9.9% from 200.7 million to 220.5 million and in value by 19.1% from Rs9,167.6 billion to Rs10,922.3 billion, the State Bank of Pakistan reported.  

At the end of March 2023, there were 9.3 million internet banking, 15.3 million mobile phone banking and 48.4 million branchless banking app users. In addition to this, holders of e-wallets reached 1.6 million.

Customers using Raast, Pakistan’s first instant payment system, for online Person-to-Person (P2P) funds transfers increased to 29.2 million users from 25.8 million. P2P value and volume of transactions processed through Raast during the third quarter grew by 92.3% and 55.6% respectively, with 41.2 million transactions amounting to Rs872.8 billion respectively.

With increasing number of digital platforms and online shopping avenues, transactions through Point-of-Sale (PoS) have also witnessed growth, with volume of transactions increasing by 6.8% and value by 10.1%.  

However, ATMs transactions remained similar to the previous quarter in terms of volume but increased 6% in value, according to the SBP report.  

The average ticket size of transactions through PoS was Rs5,463 per transaction while for ATM based transactions, it was Rs15,429 per transaction, according to the report.  

The value of e-commerce transactions processed by banks increased by 7.1% to reach Rs36.6 billion by the end of the third quarter of FY23.

There were 112,302 PoS machines installed across the country by the end of Q3 FY23, increasing from 96,975 PoS machines in the same quarter last year.

The volume of paper-based transactions declined from 95.5 million in Q2 FY23 to 94.3 million in Q3 FY23. However, its value increased by 3% to Rs1,646.6 billion during the quarter.

“As of quarter-end Mar-23, total payment cards issued in Pakistan stood at 48.4 million of which, 46.0 million are issued by Banks/ Micro Finance Banks (MFBs) while the remaining 2.4 million are issued by EMIs,” the report said.

Payment cards in Pakistan can be categorized into four categories, debit, credit, pre-paid and social welfare cards. Out of total cards in circulation, there are 37.1 million debit cards capturing 76.7% share of total cards followed by 9.2 million social welfare cards that make up 19.1%, 1.9 million credit cards, which is 4%, and 0.2% prepaid cards.  

However, the gap between male and female debt and credit card holders remains large in Pakistan.  

“Around 81% of all debit card holders are male, 19.2% female,” the report said.  


Around 300 Pakistani graduates complete advance agriculture training in China under landmark initiative

Updated 4 sec ago
Follow

Around 300 Pakistani graduates complete advance agriculture training in China under landmark initiative

  • The agriculture sector contributes nearly a quarter of Pakistan’s gross domestic product, employs 37 percent of national labor force
  • Pakistan decided to send 1,000 graduates to China to train in modern agricultural techniques after PM Sharif’s visit to Shaanxi last year

ISLAMABAD: A first batch of around 300 Pakistani graduates have successfully completed advanced agriculture training in China’s Shaanxi province, Prime Minister Shehbaz Sharif announced on Friday, describing the development as “very heartening.”

Pakistan decided to send nearly 1,000 graduates to China to train in methods and techniques to enhance Pakistani agricultural production following Sharif’s visit to the Chinese agricultural, industrial and educational hub of Xi’an, Shaanxi in June last year.

In a post on X, Sharif thanked the Chinese leadership, the Shaanxi government and the universities that imparted hands-on training to Pakistani graduates as well as appreciated the Pakistani national food security ministry, higher education commission and the Pakistani embassy for their hard work.

“Very heartening to know that the first batch of around 300 Pakistani agriculture graduates have successfully completed their hands-on practical training in Shaanxi Province, China, in important areas of water saving irrigation, seed production, animal husbandry, agriculture production and prevention of post-harvest losses,” he said.

The agriculture sector contributes nearly a quarter of Pakistan’s gross domestic product (GDP) and employs 37 percent of the national labor force, according to the United Nations’ Food and Agriculture Organization.

However, a fast-growing population, climate change and poor resource management have greatly impacted Pakistan’s crops in recent years, prompting officials to ponder alternative ways to enhance production.

Experts say building water reservoirs, restoring wetlands and promoting drought-tolerant crop varieties is vital to mitigating recurring and intensifying drought risks in the country.

“Rainwater harvesting, groundwater recharge and the adoption of modern irrigation methods like drip and sprinkler systems are no longer optional,” Muhammad Saleem Shaikh, a spokesperson for Pakistani climate change ministry, said in Jan. this year.

“They are critical tools in our survival weaponry.”


Slashed US aid showing impact, as Congress codifies cuts

Updated 26 min 30 sec ago
Follow

Slashed US aid showing impact, as Congress codifies cuts

  • Nearly 500 metric tons of high-nutrition biscuits, meant to keep alive malnourished children in Afghanistan and Pakistan, were incinerated after expiration in Dubai
  • But State Department spokeswoman Tammy Bruce took a more defiant tone on Thursday, saying the biscuits represented less than one percent of US global food aid

WASHINGTON, US: The United States’ destruction of a warehouse worth of emergency food that had spoiled has drawn outrage, but lawmakers and aid workers say it is only one effect of President Donald Trump’s abrupt slashing of foreign assistance.

The Senate early Thursday approved nearly $9 billion in cuts to foreign aid as well as public broadcasting, formalizing a radical overhaul of spending that Trump first imposed with strokes of his pen on taking office nearly six months ago.

US officials confirmed that nearly 500 metric tons of high-nutrition biscuits, meant to keep alive malnourished children in Afghanistan and Pakistan, were incinerated after they passed their expiration date in a warehouse in Dubai.

Lawmakers of the rival Democratic Party said they had warned about the expiring food since March. Senator Tim Kaine said that the inaction in feeding children “really exposes the soul” of the Trump administration.

Michael Rigas, the deputy secretary of state for management, acknowledged to Kaine that blame lay with the shuttering of the US Agency for International Development (USAID), which was merged into the State Department after drastic cuts.

“I think that this was just a casualty of the shutdown of USAID,” Rigas said Wednesday.

State Department spokeswoman Tammy Bruce, however, took a more defiant tone Thursday, saying the biscuits represented less than one percent of US global food aid, using figures that appeared to come from before Trump’s cutbacks.

“We will not be lectured about the issue of food aid or what we do for the rest of the world,” she said.

The Atlantic magazine, which first reported the episode, said that the United States bought the biscuits near the end of Biden administration for around $800,000 and that the Trump administration’s burning of the food was costing taxpayers another $130,000.

For aid workers, the biscuit debacle was just one example of how drastic and sudden cuts have aggravated the impact of the aid shutdown.

Kate Phillips-Barrasso, vice president for global policy and advocacy at Mercy Corps, said that large infrastructure projects were shut down immediately, without regard to how to finish them.

“This really was yanking the rug out, or turning the the spigot off, overnight,” she said.

She pointed to the termination of a USAID-backed Mercy Corps project to improve water and sanitation in the turbulent east of the Democratic Republic of Congo. Work began in 2020 and was scheduled to end in September 2027.

“Infrastructure projects are not things where 75 percent is ok. It’s either done or it’s not,” she said.

The House of Representatives is expected late Thursday to finalize the end of funding for what White House Press Secretary Karoline Leavitt called “$9 billion worth of crap.”

It includes ending all $437 million the United States would have given to several UN bodies including the children’s agency UNICEF and the UN Development Programme. It also pulls $2.5 billion from development assistance.

Under pressure from moderate Republicans, the package backs off from ending PEPFAR, the anti-HIV/AIDS initiative credited with saving 25 million lives since it was launched by former president George W. Bush more than two decades ago.

Republicans and the Trump-launched Department of Government Efficiency, initially led by tycoon Elon Musk, have pointed to projects they argue do not advance US interests.

“We can’t fund transgender operas in Peru with US taxpayer dollars,” House Speaker Mike Johnson told reporters, an apparent reference to a US grant under the Biden administration for the staging of an opera in Colombia that featured a transgender protagonist.

The aid cuts come a week after the State Department laid off more than 1,300 employees as Secretary of State Marco Rubio ended or merged several offices, including those on climate change, refugees and human rights.

Rubio called it a “very deliberate step to reorganize the State Department to be more efficient and more focused.”

Senate Democrats issued a scathing report that accused the Trump administration of ceding global leadership to China, which has been increasing spending on diplomacy and disseminating its worldview.

The rescissions vote “will be met with cheers in Beijing, which is already celebrating America’s retreat from the world under President Trump,” said Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee.


Pakistan mulls routes as it eyes new ferry service between Gwadar and Gulf region

Updated 18 July 2025
Follow

Pakistan mulls routes as it eyes new ferry service between Gwadar and Gulf region

  • The country has been looking to capitalize on its geostrategic location to boost transit trade and investment
  • Five private firms submit proposals as officials review technical and financial aspects of ferry operations

KARACHI: Pakistan has been mulling routes for a ferry service it plans to launch to connect its southwestern Gwadar port with the Gulf region, the country’s maritime affairs ministry said on Friday.

The statement came after a meeting presided over by Federal Minister for Maritime Affairs Junaid Anwar Chaudhry to review matters relating to the proposed ferry service.

Officials at the meeting reviewed technical and financial aspects of ferry operations, according to the ministry. Five privately-owned firms submitted their proposals, showing growing interest of the private sector.

“The ferry service will promote regional connectivity and trade,” Chaudhry was quoted as saying by his ministry. “It is expected to ease movement of passengers and goods from Gulf countries.”

Gwadar, situated along the Arabian Sea, lies at the heart of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan.

Pakistani officials say the geostrategic location of the southwestern Pakistani coastal town in the Balochistan province offers the shortest trade route to the Gulf and landlocked Central Asian states, highlighted its potential as a regional transshipment hub.

During the meeting, Chaudhry telephoned Balochistan Chief Minister Sarfaraz Bugti and discussed provincial cooperation with him, according to the maritime affairs ministry. Bugti assured his full cooperation for the project.

“The ferry service will highlight Gwadar on the international maritime map,” Chaudhry added.

The development comes amid Pakistan’s efforts to capitalize on its geostrategic location to boost transit trade as it slowly recovers from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) program.

The country also plans to cut container dwell time at its seaports by up to 70 percent to improve trade competitiveness and ease congestion, while it last month reduced port charges for exporters by 50 percent at the second largest Port Qasim.


Pakistan says mobilizing all resources to ensure public safety after rains kill nearly 180

Updated 18 July 2025
Follow

Pakistan says mobilizing all resources to ensure public safety after rains kill nearly 180

  • Heavy rains this week flooded several cities as Pakistan braces for a tough monsoon amid erratic and extreme weather changes
  • PM Shehbaz Sharif has called for formulating a coordinated plan to prevent losses in view of growing intensity of weather events

ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi said on Thursday that the government was mobilizing all resources to ensure public safety as rain-related death toll jumped to 178 since late June.

The statement came after Prime Minister Shehbaz Sharif visited the NDMA’s the National Emergencies Operation Center and called for formulating a coordinated plan to prevent losses in view of growing intensity of cloud bursts, heavy monsoon showers and flash floods.

Pakistan’s most populous Punjab province has been the hardest hit with 103 deaths, followed by 38 in Khyber Pakhtunkhwa (KP), 20 in Sindh, 16 in Balochistan and one in Azad Kashmir since June 26, according to the National Disaster Management Authority (NDMA).

“Despite the challenges posed by the ongoing rains, we’re working round the clock to ensure everyone’s safety,” Naqvi said on X.

“Rescue teams are on alert, drains are being cleared, and all resources are being mobilized.”

He urged people to follow adviseries and promptly report any emergencies to authorities.

On Thursday, Army Aviation helicopters carried out rescue operations, evacuating 40 people to safety from hard-to-reach areas in Punjab’s Jhelum district.

“Widespread thunderstorm with isolated heavy falls and torrential rains were expected Islamabad, Rawalpindi, Gujranwala, Faisalabad, Sargodha, Lahore, Sahiwal, Bahawalpur, Multan and DG Khan divisions, according to the NDMA.
The authority said the wet spell was likely to subside by Saturday.

Monsoon season brings South Asia 70 to 80 percent of its annual rainfall, arriving in early June in India and late June in Pakistan, and lasting through until September.

The annual rains are vital for agriculture and food security, and the livelihoods of millions of farmers. But increasingly erratic and extreme weather patterns are turning the rains into a destructive force.

In 2022, record-breaking monsoon rains combined with glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million. In May, at least 32 people were killed in severe storms, including strong hailstorms.

 


US designates Pakistani group’s offshoot as ‘terrorist’ over Kashmir attack

Updated 18 July 2025
Follow

US designates Pakistani group’s offshoot as ‘terrorist’ over Kashmir attack

  • The attack sparked heavy fighting between nuclear-armed Asian neighbors India, Pakistan in the latest escalation of a decades-old rivalry
  • India is an increasingly important US partner in Washington’s effort to counter China’s rising influence in Asia, while Pakistan is a US ally

WASHINGTON: The US government designated The Resistance Front, considered an offshoot of the Pakistani group Lashkar-e-Taiba, as a “foreign terrorist organization” over the April 22 militant attack in India-administered Kashmir that killed 26 people, Secretary of State Marco Rubio said on Thursday.

The Resistance Front, also known as Kashmir Resistance, initially took responsibility for the attack in Pahalgam before denying it days later.

Lashkar-e-Taiba, listed as a “foreign terrorist organization” by the United States, is a group accused of plotting attacks in India and in the West, including the three-day deadly assault on Mumbai in November 2008.

TRF’s designation by Washington as a “foreign terrorist organization” and “specially designated global terrorist” enforced President Donald Trump’s “call for justice for the Pahalgam attack,” Rubio said in a statement.

Rubio called TRF, which emerged in 2019, a “front and proxy” for Lashkar-e-Taiba. It is considered an offshoot of Lashkar-e-Taiba, according to the South Asia Terrorism Portal, a Delhi-based think tank.

The attack sparked heavy fighting between nuclear-armed Asian neighbors India and Pakistan in the latest escalation of a decades-old rivalry. New Delhi blamed the attack on Pakistan, which denied responsibility while calling for a neutral investigation. Washington condemned the attack but did not directly blame Islamabad.

Michael Kugelman, a Washington-based South Asia analyst and writer for Foreign Policy magazine, said in designating TRF, “Washington is flagging its concern about the terrorist attack that provoked the recent India-Pakistan conflict, and siding with New Delhi’s view that the group is linked to Lashkar-e-Taiba.”

He added: “This can be a shot in the arm for a US-India relationship looking to rebound after a few tough months.”

On May 7, Indian jets bombed sites across the border that New Delhi described as “terrorist infrastructure,” setting off an exchange of attacks between the two countries by fighter jets, missiles, drones, and artillery that killed dozens until a ceasefire on May 10.

The ceasefire was first announced by Trump on social media after Washington held talks with both sides, but India has differed with Trump’s claims that it resulted from his intervention and his threats to sever trade talks.

India’s position has been that New Delhi and Islamabad must resolve their problems directly and with no outside involvement.

India is an increasingly important US partner in Washington’s effort to counter China’s rising influence in Asia, while Pakistan is a US ally.

Both Hindu-majority India and Islamic Pakistan claim Muslim-majority Kashmir in full while ruling only parts of the Himalayan territory, over which they have also fought wars.