Pakistani Shariah-compliant buy-now-pay-later startup makes waves globally

The photo posted on May 19, 2023, shows the co founders of Pakistani start-up KalPay. (Photo courtesy: KalPay/Facebook)
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Updated 06 June 2023
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Pakistani Shariah-compliant buy-now-pay-later startup makes waves globally

  • Shershah Hassan, Waleed Amjad Islam KalPay featured on Forbes “30 under 30 Asia” list this year
  • KalPay allows customers to buy products and pay in three equal installments without interest

KARACHI: It was in 2020 that school and university friends Shershah Hassan and Waleed Amjad Islam began brainstorming a business idea that would help change people’s lives.

Hassan, 26, and Islam, 25, came up with Kalpay, a Shariah-compliant buy-now-pay-later (BNPL) startup that is making waves globally and was featured on this year’s prestigious Forbes “30 under 30 Asia” list.

Launched in June 2021, KalPay is already working with around 500 e-commerce merchants across multiple product and service categories, allowing customers to buy products and pay in three equal monthly installments using cards, e-wallets and bank transfers without any interest or extra charges.

Credit card penetration is less than 1 percent in Pakistan and almost 90 percent of transactions are done by cash. Pakistan has the third largest unbanked adult population globally, with about 100 million adults without a bank account in a population of 220 people, according to the World Bank.
 
“The idea was generated back in 2020, we thought about a product that could help ease financing problems and offer solutions to basic banking problems,” Hassan, who is the CEO and cofounder of KalPay, told Arab News in an interview on Monday.

“The drive was that I have to do my own business and the goal was that the work should be impact focused to improve the lives of consumers by giving them access to finance,” he said. “That dream is being fulfilled.”

After bootstrapping for around 9 months, Hassan raised investment in June 2021 and then left his job at a US company. In October of that year, he launched the startup along with his friend Islam. The funding came from local and foreign investors, including venture capital firms and angel investors from Saudi Arabia, Europe, Singapore and the United States.

“Currently KalPay is working on three verticals and providing BNPL ecommerce-based solutions through working with 500 companies and giving users access to easy financing,” Hassan, who is an Accounting and Finance graduate from the Lahore University of Management Sciences (LUMS), said.

The KalPay chief said his firm offered financing between Rs2,000 to Rs500,000, that could be paid back in three installments. Two of its new verticals are KalPay Rasayi and KalPay Taleem, offering BNPL services on the purchase of productive assets like smartphones and laptops and fee payments for education and skill development services. 

“If we are financing a laptop or a smartphone to a freelancer or Foodpanda rider, the laptop and smartphone are the source of income to them,” Hassan explained. “That is how we are creating impact in society because these products could change the lives and future of people.” 

The startup’s growth in terms of value and volume is in double digits on a month-on-month basis, and Hassan said he and his partner were planning further growth and consolidation.

Responding to a question about the rationale behind launching a Shariah-compliant product, Hassan said his research had revealed that a majority of people in Pakistan didn’t want to engage in interest-based financing.

“Obviously our [Pakistani] market is Muslim majority, so while searching from a financing perspective, one thing came into the spotlight that some customers don’t get financing because of religious concerns and I also wanted to have Shariah-compliant products,” Hassan said, adding that the service was not only for Muslims.

Talking about the challenges of the business, especially amid record inflation in Pakistan, Hassan said:

“The cost of capital and cost of financing has substantially gone up [in Pakistan]. Of course, it is a tough market to operate and the risk remains that if you are giving a loan to someone today and after six months he won’t be able to pay back.” 

The CEO admitted that some people defaulted but said the ratio remained in the single digit. 

Commenting on the cofounders’ inclusion in the Forbes list, Hassan said it came as a surprise.

“It was a sort of surprise for me because they don’t disclose before publication,” he said. “It is an honor for me, my team and of course, for Pakistan.”


Pakistan’s 21st consignment of relief items for Gaza, Lebanon and Syria arrives in Damascus

Updated 58 min 2 sec ago
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Pakistan’s 21st consignment of relief items for Gaza, Lebanon and Syria arrives in Damascus

  • Pakistan dispatched 17 tons of relief items such as blankets, food and medicines on Wednesday
  • Islamabad has repeatedly demanded an unconditional ceasefire in Gaza amid Israel’s aggression

ISLAMABAD: Pakistan’s 21st consignment of relief items for the war-affected people of Lebanon, Gaza and Syria landed in Damascus on Thursday, the National Disaster Management Authority (NDMA) said. 

Pakistan dispatched the consignment from the eastern city of Rawalpindi to Damascus on Wednesday. The relief items, sent with the help of the Pakistan Air Force, comprised 17 tons of supplies which included blankets, food and medicines. 

Israel has been attacking what it calls Iran-linked targets in Syria for years but has ramped up such raids since the Oct. 7, 2023, attack by Hamas on Israel, leading Israel to launch a military campaign in which more than 44,000 Palestinians have been killed in Gaza and more than 3,500 people in Lebanon.

“The 21st consignment of humanitarian aid for war affected/displaced people of Palestine Gaza and Lebanon has successfully landed in Damascus, which flew yesterday from the Nur Khan Base via a chartered flight, carrying 17 tons of relief items by GoP/Pak NDMA,” the authority said in a statement. 

It said the consignment was received by Air Marshal (retired) Shahid Akhtar, Pakistan’s ambassador in Damascus. 

“The Government of Pakistan remains steadfast in its commitment to providing humanitarian assistance to the war-affected people of Palestine (Gaza) and Lebanon,” the NDMA said. 

Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.


Balochistan Assembly passes resolution seeking ban on Imran Khan’s party after violent protests

Updated 28 November 2024
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Balochistan Assembly passes resolution seeking ban on Imran Khan’s party after violent protests

  • Tabled by PPP and PML-N parties’ lawmakers, resolution accuses Khan’s party of spreading chaos in the country
  • Government says clashes between Khan supporters and law enforcers led to the killing of three troops and one cop

QUETTA: Provincial lawmakers in the Balochistan Assembly on Thursday approved a resolution seeking an “immediate” ban on former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party following its violent clashes with law enforcers in the capital this week. 

Pakistan’s government said three Rangers personnel and a police officer were killed during clashes between thousands of Khan supporters and law enforcers this week when the PTI led a “long march” to the capital to demand Khan’s release, among other things. 

The protesters were dispersed after a late-night raid on Wednesday, after which the PTI said at least 20 of its supporters had been killed after being shot by law enforcers. The government denies this while police says it has arrested over 1,151 protesters. 

Lawmakers of the PTI’s political rivals Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) tabled a joint resolution, calling on the federal government to ban Khan’s party. These lawmakers included Meer Saleem Khosa, Muhammad Sadiq Umrani, Asim Kurd Gelo, Raheela Hameed Durrani, Bakht Muhammad Kakar, Hajji Wali Noorzai and Barkat Ali Rind. 

“This august house of the Balochistan Assembly calls upon the federal government to impose an immediate ban on the PTI for spreading chaos in the country, and for attempting to make the armed forces of Pakistan and security forces fight with the people,” a copy of the resolution seen by Arab News said. 

The resolution accused the PTI of being involved in violent activities in the country, saying it has adversely affected the country’s economy.

“Attacking the capital with provincial machinery and resources was a clear proof of the non-political agenda of a political party,” Khosa said while presenting the motion. 

Opposition parties such as the National Party (NP), Jamat-e-Islami (JI) and Jamiat Ulema-e-Islam Pakistan Fazl (JUI-F) opposed the resolution and its lawmakers walked out in protest during the session. 

Alam Kakar, a leader of the PTI’s Balochistan chapter, rejected the resolution.

“Let them (center) enjoy this decision but Pakistan Tehreek-e-Insaf is Imran Khan’s party and whatever name Khan would give to this party, the Pakistani nation would stand by him,” Kakar told Arab News. 

“The provincial government should focus on maintaining the law and order situation in Balochistan rather than bringing such an absurd resolution,” he added. 

Younus Aziz Zehri, an opposition leader in the Balochistan Assembly, told Arab News that the opposition parties strongly opposed the resolution.

“If today we ban the PTI, tomorrow it could be us or the PML-N or the PPP any political party in power would ban its opponents,” he said. 

“We strongly condemn the killings of civilians and security personnel during the violence by the state and protesters in Islamabad, but that doesn’t justify that you should ban that political party led the protests in Islamabad,” Zehri added. 

Pakistan’s government has said that the protests caused economic losses worth $684 million per day, describing them as deliberate attempts by the PTI to harm the country’s economy.


Pakistan welcomes ceasefire announcement between Israel and Lebanon’s Hezbollah

Updated 28 min 4 sec ago
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Pakistan welcomes ceasefire announcement between Israel and Lebanon’s Hezbollah

  • Israel approved ceasefire agreement with Hezbollah on Tuesday after nearly 14 months of fighting
  • Pakistan’s premier hopes ceasefire leads to permanent cessation of hostilities between two sides 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Thursday welcomed the ceasefire announcement between Israel and the Iran-backed Hezbollah group, hoping it would culminate in a permanent cessation of hostilities between the two sides. 

Israel approved a ceasefire agreement with Lebanon’s Hezbollah group on Tuesday that halts nearly 14 months of fighting linked to the war in Gaza. 

The ceasefire, which came into effect on Wednesday, marked the first major step toward ending the regionwide unrest triggered after Hamas’ attack on Israel on Oct. 7, 2023. However, it does not address the devastating war in Gaza, where Hamas is still holding dozens of Israeli hostages and the conflict is more intractable. 

“We welcome the announcement of ceasefire between Israel and Lebanese group Hezbollah,” Sharif wrote on social media platform X. 

“And hope that the announcement leads to a permanent cessation of hostilities in Lebanon.”

Sharif wished peace and security for the people of Lebanon. 

Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.

Since October last year, Pakistan has dispatched 21 consignments of relief items such as food and blankets for the war-affected people of Gaza, Lebanon and Syria. 

Islamabad does not have diplomatic relations with Israel and has consistently accused it of committing genocide in Gaza. Pakistan calls for an independent Palestinian state with Al-Quds Al Sharif as its capital. 


Pakistani banks to remain open on Saturday, Sunday to receive Hajj applications

Updated 28 November 2024
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Pakistani banks to remain open on Saturday, Sunday to receive Hajj applications

  • Designated Pakistani banks to remain open from 09:00 am to 02:30pm on Saturdays and Sundays
  • Deadline to file Hajj applications is Dec. 3 while draw for government scheme will be held on Dec. 6.

ISLAMABAD: Designated Pakistani banks will remain open on Saturday and Sunday to receive Hajj 2025 applications, state-owned media said on Thursday, as thousands apply for the annual Islamic pilgrimage. 

Pakistani state media said this week that over 24,000 Hajj applications by Pakistani pilgrims have been received by designated banks. 

Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for the upcoming Hajj pilgrimage, to be divided equally between the government and private schemes. Around 15 designated Pakistani banks started receiving applications for Hajj 2025 from intending pilgrims on Monday this week.

“Designated banks will remain open to receive Hajj applications on Saturday and Sunday,” state broadcaster Radio Pakistan reported. 

It said that the banks will remain open from 09:00 am to 02:30pm on Saturday and Sunday to receive the Hajj applications. 

The deadline to file Hajj applications is Dec. 3 while the draw for the government scheme will be held on Dec. 6.

The religious affairs ministry announced the country’s Hajj 2025 policy earlier this month, according to which pilgrims can pay fees for the annual pilgrimage in installments for the first time.

Under the government scheme, the first installment of Hajj dues, amounting to Rs200,000 ($717), has to be deposited along with the Hajj application, while a second installment of Rs400,000 ($1,435) must be deposited within ten days of the balloting. The remaining amount has to be deposited by Feb. 10 next year.

On Sunday, Pakistan’s religious affairs ministry said it had launched the “Pak Hajj 2025” mobile application to guide and facilitate pilgrims. The app is available for both Android and iPhone users.


Ghulam’s ton inspires Pakistan to 2-1 ODI series win against Zimbabwe

Updated 28 November 2024
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Ghulam’s ton inspires Pakistan to 2-1 ODI series win against Zimbabwe

  • Pakistan dismiss Zimbabwe for 204 runs in 40.1 overs to win third ODI by 99 runs 
  • Pakistan’s Haris Rauf, Saim Ayub and Aamir Jamal take two wickets each

ISLAMABAD: Pakistani batter Kamran Ghulam inspired Pakistan to a comfortable win over Zimbabwe in Bulawayo on Thursday, sealing a 2-1 ODI series victory over the hosts. 

Pakistan piled on an impressive 303/6 at the end of their 50 overs against Zimbabwe, with Ghulam leading the charge with his 109-run knock from 99 balls while Abdullah Shafique scored 50 runs from 68 balls. 

Pakistani captain Rizwan scored 37 runs from 44 balls as Zimbabwe’s Sikandar Raza returned figures of 2/47. 

“A 99-run win in the third ODI to wrap up a series victory,” the Pakistan Cricket Board said in a post. “Onto the T20 action.”

Pakistani players celebrate a wicket during the third ODI cricket match against Zimbabwe at Queens Sports Club in Bulawayo, Zimbabwe, on November 28, 2024. (AP)

Pakistan’s Aamir Jamal, Haris Rauf and Saim Ayub took two wickets apiece to ensure Zimbabwe were skittled out for 204 runs in 40.1 overs. 

Zimbabwe skipper Craig Ervine top-scored with a fighting 51 runs from 63 balls. 

Zimbabwe’s Craig Ervine bats with Pakistan’s wicket keeper, Mohammad Rizwan (left) during the third ODI cricket match between Zimbabwe and Pakistan at Queens Sports Club in Bulawayo, Zimbabwe, on November 28, 2024. (AP)

Pakistan bounced back from a shocking loss in the rain-affected first match with a 10-wicket win in the second, after a maiden ODI century from Ayub.

The tourists retained the same winning combination for the third ODI, with Faisal Akram, Abrar Ahmed and Salman Ali Agha the three spin options.

Zimbabwe brought in wicketkeeper-batter Clive Madande and fast bowling all-rounder Faraz Akram for their first game of the series in place of Brandon Mavuta and Trevor Gwandu.

The ODI series will be followed by a three-match Twenty20 series starting at Bulawayo from Sunday.