KARACHI: Raast, an instant payment system of Pakistan, will be integrated within next 8 months with Buna, a cross-border payment system of the Arab Monetary Fund (AMF), to facilitate remittances in real-time between Pakistan and the Gulf region, Pakistani central bank chief told Arab News on Friday.
Earlier this month, the AMF and the State Bank of Pakistan (SBP) had signed a memorandum of understanding (MoU) in Abu Dhabi to establish a framework of cooperation between Buna, which is operated by Arab Regional Payments Clearing and Settlement Organization (ARPCSO) and supported by all central banks in the region, and Pakistan’s Raast.
“We have targeted to complete the integration (of Raast and Buna) in six to eight months,” Jameel Ahmad, the SBP governor, told Arab News on the sidelines of the 8th Pakistan Banking Awards in Karachi.
The integration of Raast with Buna is aimed at facilitating cross-border remittances between the Gulf region and Pakistan through formal channels. This initiative will benefit individuals as well as businesses not only through instant, safe and cost-effective cross border payments, but also by strengthening economic, financial, and investment ties between the Arab countries and Pakistan.
“The biggest benefit of this integration will be instant transfer of funds from any member country of the Arab Monetary Fund, and secondly at a low cost,” Ahmad said. “These are the two key benefits but there are also other benefits, including security of the funds.”
The integration of payment systems will facilitate Pakistani workers living in the Gulf region, including Saudi Arabia and the United Arab Emirates (UAE) that are one of the major contributors to the remittance inflows to Pakistan. Saudi Arabia and the UAE provided employment to 77 percent of the Pakistani expatriate workers in 2022.
Speaking at the event earlier, the SBP governor said the central bank had made a strategic plan for the next five years, called ‘Vision 2028,’ a commitment to foster price and financial stability. The financial sector is particularly vulnerable to climate change risks through its lending, investment and insurance activities, he noted.
“Similarly, cybersecurity is another emerging challenge that poses a significant threat to financial stability and our effort to achieve sustainable financial inclusion,” Ahmad said.
In recent years, he noted, there had been a sharp increase in the number and sophistication of cyberattacks on financial institutions, and these attacks could result in significant financial losses as well as cause reputational damage and operational distress.
“To address these challenges, we need to work together to strengthen our regulatory framework, enhance our supervisory oversight, and build a culture of financial resilience,” the SBP governor said, adding this would require a concerted effort from the central, the banking sector, and other stakeholders.
About the state of economy, the SBP chief said the current account deficit had come down from 4.8 percent to 0.8 percent of the GDP.
“So again, we are on track to achieve a very manageable current account deficit. Hopefully it will not exceed 1.5 percent of GDP for the current fiscal year as well,” he said.
Raast, Buna systems to be integrated within 8 months to facilitate real-time remittances from Gulf — Pakistani official
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Raast, Buna systems to be integrated within 8 months to facilitate real-time remittances from Gulf — Pakistani official
- Arab Monetary Fund, State Bank of Pakistan this month agreed to establish a framework of cooperation to facilitate fund transfer in real time
- Central bank governor says the financial sector is vulnerable to climate change risks, cybersecurity poses a significant threat to financial stability
Thousands gather in Pakistan’s Karachi to celebrate Gaza ceasefire
- The truce took effect on Sunday with the release of first three hostages held by Hamas and 90 Palestinians freed from Israeli jails
- Jamaat-e-Islami, which organized the Karachi rally, urged the Pakistani people to support its initiative for the rebuilding of Gaza
KARACHI: Thousands of Pakistanis gathered on Monday on a main thoroughfare in the southern port city of Karachi to celebrate a ceasefire between Israel and Hamas in Gaza, describing it as a “victory of resistance forces.”
The truce in the 15-month-old war, which has laid waste to the Gaza Strip, took effect on Sunday with the release of the first three hostages held by Hamas and 90 Palestinians freed from Israeli jails.
Now, attention is starting to shift to the rebuilding of the coastal enclave which the Israeli military has demolished, killing more than 47,000 Palestinians since Oct. 7, 2023 attacks by Hamas on Israel.
To celebrate the ceasefire, the Jamaat-e-Islami (JI) religious party organized a congregation on Shahrah-e-Quaideen thoroughfare in Karachi, which was attended by thousands of men, women, children and elderly.
“What happened in Gaza once again exposed the United States as it was the sponsor of the genocide,” JI chief Hafiz Naeemur Rehman told the attendees. “The freedom fighters [of Gaza] defeated Israel in all the dimensions.”
The attendees at the rally carried the Palestinian flags and chanted slogans in support of the people of Gaza.
Rehman urged them to support a JI initiative for the rebuilding of Gaza and continue their boycott of Israeli products and the products of the countries that sided with Israel.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
The South Asian country has dispatched several relief consignments for Gaza, besides establishing the ‘Prime Minister’s Relief Fund’ that aims to collect public donations for the war-affected people.
In his address with the participants through a video link, Hamas official Khalid Qadoumi said Gaza proved to be “Vietnam for Israel.”
“Israel opted to retreat due its heavy military losses in the strip,” he was quoted as saying by the JI party.
“Israel displaced 90 [percent] population of Gaza, killed around 50,000 innocent, unarmed people, majority of them women and children, but it couldn’t defeat the resolve of Palestinian Muslims.”
Muhammad Farooq, a Pakistani provincial lawmaker, said the Pakistani nation stood by the Palestinians in their struggle for freedom.
“The freedom movement of Palestine has proved that life of nations is linked with resistance against oppression,” he added.
Iran’s top general meets Pakistani leaders, discusses security and border management
- Pakistan, Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy
- Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both countries claiming to target alleged militant hideouts
ISLAMABAD: Maj. Gen. Mohammad Bagheri, chief of general staff of Iranian armed forces, on Monday held talks with Pakistani civilian and military leaders with regard to regional security, counter-terrorism measures and joint border management, Pakistani authorities said.
Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.
The two-day trip of the Iranian general is aimed at resolving security issues between Pakistan and Iran, while expanding friendship and economic ties along their shared border, Iranian media reported ahead of Major General Bagheri’s arrival in Pakistan on Sunday night.
On Monday, the general held separate meetings with Pakistan’s President Asif Ali Zardari, Defense Minister Khawaja Asif and Army Chief Asim Munir. In his meeting with President Zardari, the two figures exchanged views on matters of bilateral importance and stressed the need to promote bilateral trade and economic relations.
“It was also highlighted that terrorism was a shared challenge, and both countries needed to take effective and coordinated measures to address this challenge,” the Press Information Department (PID) of the Pakistani government said in a statement.
In his conversation with the visiting dignitary, Defense Minister Asif expressed satisfaction over positive progression of bilateral relations between the two countries in all fields.
“Both sides showed satisfaction on progress in various areas of mutual interest, including joint border management and counter-terrorism measures, aimed at enhanced cooperation in areas of common interest in future,” the PID said.
Separately, Major General Bagheri met Pakistan’s army chief at the General Headquarters in Rawalpindi, where he was presented a guard of honor.
“During the meeting, both sides discussed matters related to the prevailing regional security environment and bilateral defense cooperation,” said the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
In a bid to ease tensions, late Iranian president Ebrahim Raisi had also traveled to Pakistan on a three-day visit in April 2024. During the visit, the two sides had signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters.
Raisi’s visit was followed by a two-day visit to Islamabad by Iranian Foreign Minister Seyed Abbas Araghchi in Nov. to hold consultations with the Pakistani leadership on the Middle East situation, following Israel’s invasion of Gaza and Lebanon, and to discuss bilateral ties with Pakistan.
Foreign Office confirms one more Pakistani survivor of Morocco boat capsize
- The boat sank off Morocco’s coast last week with 86 people on board
- The confirmation brings the total number of Pakistani survivors to 22
ISLAMABAD: Pakistan’s Foreign Office on Monday confirmed one more survivor of a migrant boat capsize off the coast of Morocco last week, bringing the total number of survivors to 22.
The migrant boat capsized near Morocco’s coast on Jan. 15 while en route to Spain. It was carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later that 36 people were rescued from the vessel which left Mauritania on Jan. 2, while Foreign Office confirmed on Sunday the survivors included 21 Pakistani nationals.
“Based on verified information, one more Pakistani national named Muhammad Adeel s/o Muhammad Rasheed has been identified among the survivors of the boat tragedy,” the Pakistani foreign office said on Sunday.
The incident near Morocco has once again underscored the dangerous journeys many migrants, particularly Pakistanis, embark on due to conflict and economic instability in their home country.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a ship wreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests.
Prime Minister Shehbaz Sharif has urged increased collaboration with international agencies to ensure swift action against human trafficking networks.
McCullum sees India series as ideal prep for Champions Trophy in Pakistan
- The tourists, led by Jos Buttler, will face India in the first of five T20 internationals in Kolkata on Wednesday
- India series marks England’s first limited-overs tour under coach McCullum, previously in charge only of Test side
KOLKATA: England coach Brendon McCullum said Monday he hopes his side emerge from a host of limited overs matches against India in “good shape” for the upcoming Champions Trophy.
The tourists, led by Jos Buttler, will face India in the first of five T20 internationals at Kolkata’s Eden Gardens on Wednesday.
The India series marks England’s first limited-overs tour under McCullum, previously in charge only of the Test side.
“I’m desperate for us to play a really watchable brand of cricket,” McCullum told reporters. “With the talent we have, there’s no reason we can’t.”
The teams will play three one-day matches, before they move into the eight-team ODI Champions Trophy starting February 19 in Pakistan and Dubai.
“We’ll use the next few weeks to try and hit the ground running, I’m sure there will be some times where we don’t quite get it right,” he added.
“But, hopefully, we will chisel away at that over the next few weeks, and we’ll be in good shape come that Champions Trophy.”
The 43-year-old McCullum said Buttler, who will only play as a batsman and not keep wicket on the tour, will leave a lasting legacy as England’s white-ball leader.
“He’s in a really good space, he’s excited about the team we’ve got, and excited about the opportunity that sits in front of us,” the former New Zealand skipper said.
“I’m sure we’ll see Jos over the next couple of years really enjoy himself, and hopefully finish with a real strong enjoyment for the game at the back end of his career.”
But India, led by Suryakumar Yadav, remain the favorites on home turf — and have been boosted by the return of fast bowler Mohammed Shami after he recovered from a foot injury.
Shami, 34, last played for India in the ODI World Cup final in November 2023 and recently participated in a few domestic matches to mark his return to competitive cricket.
“It’s a really good sign for us,” India’s T20 vice-captain Axar Patel said. “We hope he continues what he did in the World Cup.”
New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts
- Islamabad-Washington ties, strained over Pakistan’s alleged support of Taliban, further worsened after ex-PM Khan blamed his ouster on Washington
- Analysts suggest Islamabad to make a clear agenda with defined milestones, cautiously approach developments in relations and respond accordingly
ISLAMABAD: The new United States (US) administration of President Donald Trump will continue viewing Pakistan through the “China-India lens,” Pakistani foreign affairs experts said on Monday, as Islamabad pledged to strengthen its relations with Washington.
Trump’s inauguration is scheduled for Monday at 1700 GMT inside the Capitol Rotunda as he returns to the presidency four years after being voted out during a pandemic-driven economic collapse, marking an unprecedented political comeback.
Relations between Islamabad and Washington, once close allies, had been strained because of Pakistan’s alleged support of the Taliban in Afghanistan, a claim Islamabad denies. Ties worsened further during the tenure of Prime Minister Imran Khan, who welcomed the Taliban’s 2021 takeover and accused Washington of trying to oust him. Since Khan’s ouster in 2022, PM Shehbaz Sharif’s government has made frequent efforts to repair the damaged relations.
But Pakistani foreign affairs experts believe that the US is unlikely to seek a significant expansion of ties with Islamabad in the near future and will approach it keeping its China and India policies in view, and remaining largely focused on security cooperation, particularly in counterterrorism and Afghanistan.
“The biggest challenge for Pakistan is that the Trump administration will continue its previous policies of looking at Pakistan through the China-India lens,” Dr. Zafar Nawaz Jaspal, a professor at Quaid-e-Azam University’s School of Politics and International Relations, told Arab News.
“Now, the biggest challenge for us is how to convince the Americans that though we will be not a part of the American policies to contain China, but at the same time, we could be a part of Americans’ policies in addressing the non-traditional security challenges and on Afghanistan.”
He said the new Trump administration could use the incarceration of Pakistani political figures, including ex-PM Khan, to influence the incumbent Pakistani government.
“People think that Imran Khan is an established fact, the political divide in Pakistan exists and that divide could be exploited by the external powers for pursuing their agendas within the country or in the region,” Dr. Jaspal added.
Trump’s special envoy nominee Richard Grenell urged President Joe Biden’s administration to use its last days in power to push for the release of Khan, who has been in jail for more than a year on a slew of charges, so he could run for office in Pakistan.
While a Pakistani Foreign Office spokesperson declined to comment on Grenell’s statement at the time, the Pakistani government and allies have criticized Grenell’s comments.
On Monday, Pakistani Foreign Office spokesperson Shafqat Ali Khan said Pakistan maintained close relations with the US, marked by multi-layered cooperation in economy, trade, people-to-people connections, security and counter-terrorism, and Islamabad seeks to further solidify them.
“Pakistan-US relations have a very long history, and the relations remain rich and dense, and we would continue to work with the new administration to further solidify and strengthen this vital relationship,” Shafqat told Arab News.
“We seek to further strengthen these ties by ensuring the continued positive growth of bilateral relations.”
Senator Sherry Rehman, who has previously served as Pakistan’s ambassador to the US, said every transition offers opportunities for a reset, and Pakistan needs to state its own goals for a broader bilateral path to widen its relationship with the US from a highly “securitized” lens to a more robust economic and commercial one.
“Islamabad should make a clear agenda with defined milestones for consistent engagement over better terms of trade, not just wait for Washington to respond to regional headwinds, in which Pakistan finds itself seeking balance against an Indian arms race in South Asia,” she told Arab News.
“There should be no diplomatic diffidence in stating the country’s strategic interests while iterating confidence in rebuilding trust between the two countries [Pakistan and the US].”
Masood Khan, another former Pakistani ambassador to the US, said Pakistan should try to invest “new energy” into economic cooperation between the two countries and remove any “shackles” in the strategic domain.
“The full contours of President Trump’s policy toward South Asia haven’t become very clear, but we have shared strategic interests in the region and beyond,” he told Arab News.
“This is called Trump 2.0, so it will not be the repetition of the previous tenure,” he said, adding that Trump is more “clear-headed and more forthright” regarding his priorities this time.
Dr. Salma Malik, another foreign affairs expert, said if the US adopts policies directed against China, every action or policy decision it takes will have a “direct or indirect impact on Pakistan.”
“Therefore, it is important not to overreact or panic, instead, we should cautiously approach developments, assess opportunities, and respond accordingly,” she said.
