Pakistan announces plan to enhance IT exports by $5bn, bring Paypal to country

Caretaker Prime Minister Anwaar-Ul-Haq Kakar gestures during a briefing from the Ministry of Information and Technology in Islamabad on September 7, 2023. (Photo courtesy: PMO)
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Updated 07 September 2023
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Pakistan announces plan to enhance IT exports by $5bn, bring Paypal to country

  • Pakistan’s IT minister says government plans to provide incentives for local manufacturing, export of smartphones 
  • Government also greenlights proposal to boost country’s IT exports by establishing dollar retention accounts

ISLAMABAD: Interim IT Minister Umar Saif announced on Wednesday that the government intends to enhance IT exports by $5 billion by training over 200,000 professionals, institutionalizing dollar retention accounts, and bringing global online payment platforms Paypal and Stripe to the South Asian country.
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, helping them 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 in 2022.
Despite Pakistan being home to thousands of freelancers, global online payment platform Paypal refused to extend its services to the South Asian country in 2019. Paypal refused to operate in Pakistan, saying that it was not included in the company’s three-year roadmap due to a lack of business opportunities, regulatory and compliance issues, as well as concerns around fraud and money laundering in the country.
Similarly, Stripe, an Irish-American online payment processor and payment gateway that lets customers securely pay online for products and services, is not available in Pakistan.
“The Prime Minister has approved and appreciated our plan for the Ministry of IT and Telecom,” Saif wrote on the social media platform X. “[Which includes bringing] PayPal and Stripe to Pakistan and establishing co-working spaces for 500,000 freelancers to increase their potential to an additional $3 billion per year.”

Saif said his ministry’s plan also included enhancing IT exports by institutionalizing dollar retention accounts, streamlining tax issues, and training 200,000 IT professionals to add $5 billion to IT exporters.
The minister said the government had also agreed to take steps to improve connectivity throughout the country by launching Starlink, a global satellite Internet service, in Pakistan and setting up the Pakistan Venture Capital Fund to attract international venture capitalists. This, he said, would foster a significant $1 billion investment in local startups.
He said the premier had also approved his plan to provide “incentives for local manufacturing and export of smartphones in Pakistan, as well as smartphone financing platform (so that people can easily get phones on monthly installments) to enhance local demand.”
Saif said the government would “prepare the telecom industry for the impending 5G auction within ten months by implementing active spectrum sharing, progressive taxation policies, and favorable regulations.”
According to government data, Pakistan’s IT and IT-enabled Services (ITES) export remittances fell short of the fiscal year 2022-23 target by approximately 14 percent. This shortfall can be attributed to several factors, including the failure to implement agreed-upon incentives, inconsistency in policies, and unresolved issues related to taxes and banks.
 

 


India withdraws from Pakistan-hosted T20 Blind World Cup after failing to secure clearance--ESPNcricinfo

Updated 4 sec ago
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India withdraws from Pakistan-hosted T20 Blind World Cup after failing to secure clearance--ESPNcricinfo

  • Pakistan is scheduled to host T20 Blind Cricket World Cup from Nov. 22-Dec. 3
  • Political tensions have limited cultural exchanges and sports contests between both sides

ISLAMABAD: The Cricket Association for the Blind in India (CABI) announced on Wednesday that its blind cricket team was withdrawing from the upcoming T20 Blind Cricket World Cup in Pakistan, citing its failure to secure clearance from New Delhi to travel to the neighboring country, sports website ESPNcricinfo reported.

The T20 Blind Cricket World Cup was scheduled to be held in Pakistan from Nov. 22 — Dec. 3. Political tensions between nuclear-armed neighbors India and Pakistan have restricted cultural exchanges and bilateral sports events between the two nations. 

Both countries have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.

“While this is a significant setback for the team, CABI fully respects the government’s concerns and the decision for the same,” the board said in a statement, as per ESPNcricinfo. “The team had been training rigorously and was eager to compete. However, we prioritize the government’s guidance and remain steadfast in our commitment to the continued development of Blind Cricket in India.”

Durga Rao Tompaki, the captain of the Indian men’s cricket team for the blind, said the decision was “disheartening” for his team. 

“However, we know that the next World Cup is just around the corner, and we remain committed to our training and preparation,” Tompaki said. 

India’s decision takes place 100 days ahead of the start of the 2025 Champions Trophy, which is also set to be held in Pakistan in February/March next year. The Board of Control for Cricket in India (BCCI) informed the ICC this month that India will not travel to Pakistan for the tournament. 

The ICC informed the PCB following which Pakistan demanded an explanation. Pakistan has repeatedly insisted it will not agree for the tournament to be shifted to another country and has insisted India travel to the country for the Champions Trophy.

Pakistan hosted last year’s Asia Cup but all of India’s games were played in Sri Lanka under a hybrid hosting model for the tournament. Several months later Pakistan traveled to India for the 50-over World Cup.

Political tensions between the countries have led to the India team avoiding travel to Pakistan since 2008 and the two have tended to only compete together in multi-nation tournaments, including ICC World Cups. Pakistan also traveled to India in 2012 for a bilateral ODI series.


Pakistan court grants ex-PM Khan bail in new state gifts case, orders release — party

Updated 44 min 33 sec ago
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Pakistan court grants ex-PM Khan bail in new state gifts case, orders release — party

  • Khan and his wife are accused of undervaluing jewelry set and later buying it from state repository at lesser price
  • Unlikely Khan will be released as he is under arrest in cases relating to riots by his alleged supporters in May last year

ISLAMABAD: The Islamabad High Court (IHC) on Wednesday granted bail to former prime minister Imran Khan and ordered his release in a case involving gifts acquired from a state repository, his Pakistan Tehreek-e-Insaf (PTI) party said. 

The reference, popularly called the new Toshakhana case, was filed in July and involves a jewelry set worth over €380,000 gifted to the former first lady by a foreign dignitary when Khan was prime minister from 2018-2022. The couple is accused of undervaluing the gift and buying it at a lesser price from the state repository.

Khan’s wife, who was also under arrest in the case, got bail from the IHC last month. 

Before the new case was filed, the ex-premier, who has been in jail since last August, was convicted in four cases. Two of the cases have since been suspended, including an original one relating to state gifts, while he was acquitted in the remaining two.

“Former prime minister of Pakistan Imran Khan, currently jailed, has been granted bail in the Toshakhana 2 case,” the PTI said in a message shared with media. “Islamabad High Court has ordered his release.”

“This was the last government’s case [against Khan], all previous prosecutions have lost steam and collapsed,” Khan’s lawyer Salman Safdar told reporters outside the court after the IHC delivered its verdict.

However, it is unlikely that Khan will be released after the IHC order as he is also under arrest in a number of cases related to riots in May 2023 in which his alleged supporters ransacked government and military buildings after Khan’s brief arrest in a separate case. 

Khan’s convictions earlier this year prevented him from contesting the Feb. 8 election. The former prime minister and his party alleges the cases are politically motivated cases and a ploy by the caretaker government, Pakistan’s electoral watchdog, the powerful military and his political rivals, led by the Pakistan Muslim League-Nawaz (PML-N) party, to keep Khan and his party away from elections. All three deny the allegations. 

Khan, who was ousted from office after a parliamentary vote in April 2022, has since waged an unprecedented campaign of defiance against the country’s powerful military, which is thought to be aligned with the government.

He continues to remain popular among the masses, especially the youth, with his party’s rallies drawing thousands of people. Khan’s party has held several rallies over the past few months to build public pressure to secure his release from prison.

The PTI has announced it will hold an anti-government “long march” to Pakistan’s capital on Nov. 24 to demand Khan’s release from prison, the release of the party’s jailed leaders and supporters, and independence of the judiciary, which it says was compromised after the government recently passed the 26th amendment. 

The government says the recent amendments related to the judiciary are meant to smooth out its functioning and tackle a backlog of cases. 
 


Ten army, two paramilitary soldiers killed as militants attack Pakistan check post

Updated 20 November 2024
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Ten army, two paramilitary soldiers killed as militants attack Pakistan check post

  • Tuesday’s attack took place on joint army-FC check post in Mali Khel area of Bannu District
  • Seven policemen abducted by gunmen from Bannu district on Monday recovered by police

ISLAMABAD: Ten Pakistan army soldiers and two from the paramilitary Frontier Constabulary were killed on Tuesday as militants attacked a checkpost in the northwestern Bannu district, the army said in a statement on Wednesday.

Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has seen a surge in attacks in recent months, which Islamabad says are mostly carried out by Afghan nationals and their facilitators and by Tehreek-e Taliban Pakistan (TTP) and other militant groups who cross over into Pakistan using safe haven in Afghanistan. The Taliban government in Kabul denies the charges, saying Pakistan’s security challenges are a domestic issue.

The remote southwestern province of Balochistan has also seen an increase in strikes by separatist ethnic militants this year. 

Tuesday’s attack was on a joint army-FC check post in the Mali Khel area of Bannu District, with six militants killed in the exchange of gunfire, the army said. 

“The attempt to enter the post was effectively thwarted by own troops, which forced the khwarij [militants] to ram an explosive laden vehicle into the perimeter wall of the post,” the statement said.

“The suicide blast led to collapse of portion of perimeter wall and damaged the adjoining infrastructure, resulting in Shahadat [martyrdom] of twelve brave sons of soil that include ten Soldiers of the security forces and two soldiers of Frontier Constabulary.”

On Monday, seven policemen were abducted from a check post in Bannu district, but the cops were recovered on Tuesday through the efforts of local tribal elders and a massive search operation by police in the unforgiving mountainous terrain.

The TTP, which operates along the Pak-Afghan border, is separate from the Afghan Taliban movement, but pledges loyalty to the Islamist group that now rules Afghanistan after US-led international forces withdrew in 2021.

Islamabad says TTP uses Afghanistan as a base and that the ruling Taliban administration has provided safe havens to the group close to the border. The Taliban deny this.


Pakistan VPN ban could hike IT sector operational costs by $150 million annually — association

Updated 20 November 2024
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Pakistan VPN ban could hike IT sector operational costs by $150 million annually — association

  • Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in fiscal year 2024
  • Business Council says many multinational firms considering relocating from Pakistan, some having “already done so” 

KARACHI: The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, has warned this week Internet slowdowns and the restriction of virtual private network (VPN) services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually. 

Pakistan’s IT sector has been thriving in recent years, with exports clocking in at $3.2 billion in FY24. 

Internet speeds in Pakistan have dropped by up to 30-40 percent over the past few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP) as the federal government moves to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Authorities have also announced a ban on the use of VPNs in the country.

Pakistan has already blocked access to social media platform X since the February general elections, with the government saying the blocking was to stop anti-state activities and due to a failure by X to adhere to local Pakistani laws. 

Rights activists say all these moves are designed to stifle critical voices and democratic accountability in the country, which the government denies. 

“Internet slowdown and blocking of virtual private network (VPN) services will certainly translate into an existential threat as it will result in unrecoverable financial loss, service disruptions, and reputational loss in the export of IT and IT-enabled Services (ITeS),” P@SHA Chairman Sajjad Mustafa Syed said in a statement released on Tuesday, putting “cautious estimates” of the increase in operational costs of the IT industry from VPN blockages at between $100-150 million each year.

In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” P@SHA also said that month Pakistan’s economy could lose up to $300 million a year due to Internet disruptions caused by the imposition of the firewall.

“Even by conservative estimates the IT industry will suffer losses in tens of millions of dollars in the short term; and the reputational and intangible loses will be huge and devastating for the industry in the longer run, especially with the global competitive landscape evolving in this space,” Syed said. 

He said the Internet slowdown and VPN blocks would deal a “huge blow” to one of the fastest-growing industries of Pakistan and create a “domino effect” on other sectors of the economy.

“Domestic and international IT companies will be forced to close or significantly restrict their operations in Pakistan – and it will be detrimental to the most flourishing industry of Pakistan vis-à-vis exports, skills development and employment generation,” Syed added.

“In addition to this, it will be extremely demoralizing and discouraging for our IT companies, their workforce, start-up entrepreneurs, freelancers, and everyone involved in the sector – who are working very hard to bring Pakistan at the forefront of global technology destinations.”

Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.

“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” Syed said. 

“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”

He said the estimated financial losses from the moves did not include the inevitable loss of livelihoods of remote workers and freelancers, urging authorities to engage with P@SHA, industry leaders, and relevant stakeholders to develop a “balanced and secure framework” that safeguarded national security without compromising the operational needs of the IT and other economic sectors of Pakistan.


Washington says working with Pakistan to enhance civilian and military anti-terror capabilities

Updated 20 November 2024
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Washington says working with Pakistan to enhance civilian and military anti-terror capabilities

  • Pakistan’s northwestern Khyber Pakhtunkhwa province has seen surge in militant attacks in recent months
  • Southwestern province of Balochistan has also seen increase in strikes by separatist ethnic militants this year

ISLAMABAD: US State Department Spokesman Matthew Miller said this week Washington was working closely with Pakistan to enhance the counterterrorism capabilities of its civilian and military agencies, amid a rise in militancy in the South Asian nation.

Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has seen a surge in militant attacks in recent months, which Islamabad says are mostly carried out by Afghan nationals and their facilitators and by Tehreek-e Taliban Pakistan (TTP) and other militant groups who cross over into Pakistan using safe haven in Afghanistan. The Taliban government in Kabul denies the charges, saying Pakistan’s security challenges are a domestic issue.

The remote southwestern province of Balochistan has also seen an increase in strikes by separatist ethnic militants this year. 

“We continue to have an important bilateral counterterrorism partnership with the Government of Pakistan, and it includes regular high-level dialogues and working level consultations dedicated to enhancing both civilian and military capabilities to detect and counter these type of threats,” Miller said at a press briefing on Tuesday evening.

Responding to a question about media reports that eight Pakistani soldiers had been killed in the country’s northwest, and seven police officers abducted near the Afghan border, Miller said the US “condemned these and all terrorist attacks.”

“I would just say, as these horrific attacks against the Pakistani people continue, we remain committed to engaging with government leaders and civilian institutions to identify opportunities to build capacity in detecting, preventing, and responding to threats posed by militant terrorist groups,” the spokesman added.

On Tuesday, Pakistan said it had approved a “comprehensive military operation” against separatist militant groups operating in Balochistan. The government did not provide any details of the military operation such as when it would be launched and in which parts of the province and which security agencies would participate.