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
Four Pakistanis identified among the dead in migrant boat tragedy off Greek island
- Coast guard said on Saturday at least five migrants had died, unknown number were missing, over 200 rescued
- Greek government officials say the spike in migrant arrivals is being driven by conflicts in the Middle East
ISLAMABAD: The foreign office said on Monday four Pakistanis were among the dead following the latest migrant boat tragedy last week near the Greek island of Crete.
In 2023, hundreds of migrants drowned when an overcrowded vessel capsized and sank in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever in the Mediterranean Sea.
Greek government officials say the spike in migrant arrivals is being driven by conflicts in the Middle East.
“We announce with deep sorrow that, as per the latest information shared by the Greek authorities, four Pakistani nationals have been identified among the dead in Saturday’s incidents of capsized boats in the south of Crete Island of Greece,” the foreign office said in a statement on Monday evening.
“Our Mission in Athens is in contact with the Greek authorities to facilitate the survivors and repatriate the dead bodies.”
Greece was a favored gateway to the European Union for migrants and refugees from the Middle East, Africa and Asia in 2015-2016, when nearly 1 million people landed on its islands, mostly via inflatable dinghies.
Incidents with migrant boats and shipwrecks off Crete and its tiny neighbor Gavdos, which are relatively isolated in the central Mediterranean, have increased over the past year.
Federal government tables Digital Nation Pakistan Bill 2024 in National Assembly
- The bill comes amid what activists and critics describe as a widespread digital crackdown in Pakistan
- IT minister says government to set up National Digital Commission to transform Pakistan into ‘digital nation’
ISLAMABAD: The federal government of Prime Minister Shehbaz Sharif tabled the Digital Nation Pakistan Bill 2024 in the lower house of parliament today, Monday, with the aim to create a digital identity for citizens and centralize social, economic, and governance data.
The bill comes amid what activists and critics describe as a widespread digital clampdown in Pakistan. The government has been cracking down on VPN use for weeks, with the PTA announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs would be blocked in Pakistan after Nov. 30. The deadline was later withdrawn, and a new one has not been announced.
Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online. The government is also moving 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.
Monday’s National Assembly agenda said the new Digital Nation Pakistan Bill would “provide for the transformation of Pakistan into a digital nation, enabling a digital society, digital economy and digital governance.”
Pakistan’s Dawn newspaper reported that the bill aims to give a digital identity for every citizen.
“It would include data about an individual’s health, assets and other social indicators,” the top Pakistani English-language newspaper said.
“The bill’s objective, as stated by officials, was to improve access to departments managing ID cards, land records, birth certificates and health records.”
Earlier on Monday, while addressing a ceremony in Islamabad, Minister of State for Information Technology and Telecommunications, Shaza Fatima Khawaja, said the government was establishing a National Digital Commission (NDC) to “enable the transformation of Pakistan into a digital nation, fostering a digital society, digital economy and digital governance.”
“The Commission, led by Prime Minister Shehbaz Sharif, will include all provincial chief ministers and representatives from key regulatory bodies such as the National Database & Registration Authority (NADRA) and PTA,” she said while addressing the National Broadband Network (NBN) Forum 2024 Gigabit for All.
Khawaja also said the government planned to establish a new digital authority, which would develop a comprehensive national framework and master plan for digitalization, focusing on three key areas: economy, governance, and society.
To address Internet speed issues, the government would introduce new 4G and 5G spectrums, which would help resolve a major challenge faced by freelancers and IT professionals, she said.
According to the Wireless and Internet Service Providers Association of Pakistan (WISPAP), Internet speeds have dropped by 30-40 percent in recent months.
“5G spectrum auctions will be made in April next year,” Khawaja added, “which will significantly improve Internet services in the country.”
Digital rights activists say the Internet slowdowns and the government’s move against VPNs are attempts to block vital tools that allow users to bypass restrictions. The use of VPNs has sharply risen in Pakistan since February this year when the government banned X soon after allegations of rigging in general elections surfaced. The election commission denies them.
Pakistan PM to attend summit of D-8 developing nations in Cairo this week
- D-8 summit from Dec 18-20 will see gathering of leaders from eight countries to promote economic cooperation
- PM to attend special session on Gaza where Israeli military campaign has killed over 46,000 people since Oct. 7 last year
ISLAMABAD: Prime Minister Shehbaz Sharif will undertake an official visit to Egypt from Dec. 18-20 to participate in the Eleventh Summit of the Developing Eight (D-8) countries being held in Cairo, the foreign office said on Monday.
The D-8 Summit is a gathering of leaders from eight developing countries including Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkiye. It aims to promote economic cooperation and development among member states, with a focus on areas like trade, energy, agriculture, and transportation.
Preceding the Cairo Summit, Deputy Prime Minister Ishaq Dar will attend the 21st Session of the D-8 Council of Ministers on Dec. 18.
The theme of this year’s D-8 Summit is “Investing in Youth and Supporting SMEs: Shaping Tomorrow’s Economy.”
“At the Summit, the Prime Minister will underline the importance of investing in youth and SMEs for building a strong and inclusive economy; creating jobs; advancing innovation; and promoting local entrepreneurship,” the foreign office said.
“He will express Pakistan’s strong commitment to the ideals of D-8; underscore the importance of fostering partnerships for mutual benefit and prosperity; and promoting cooperation in agriculture, food security and tourism. He will also underline Pakistan’s incentives for youth empowerment and financial development.”
The Prime Minister of Pakistan will also attend a special session on the humanitarian crisis and reconstruction challenges in Gaza and Lebanon following Israel military offensives in the Middle East since October last year.
“He will underline Pakistan’s principled position on the situation in Palestine and call for peace in the Middle East,” the foreign office said. “On the sidelines of the Summit, the Prime Minister is expected to hold bilateral meetings with participating leaders.”
Health officials in the Gaza Strip said on Monday the death toll from the 14-month war between Israel and Hamas had topped 45,000 people.
The Gaza Health Ministry does not distinguish between civilians and combatants in its count, but it has said that more than half of the fatalities are women and children. The Israeli military says it has killed more than 17,000 militants, without providing evidence.
Pakistan stocks breach historic 116,000 mark as key rate cut by 200 bps
- Central bank has already slashed interest rates by 700 basis points in four consecutive meetings since June
- Pakistan’s latest cut is the most aggressive among emerging market central banks in the current easing cycle
ISLAMABAD: Pakistan’s KSE-100 index reached a historic high of 116,691, marking an impressive gain of 1,868 points, or 1.63 percent, as investors anticipated the monetary policy review scheduled for today, Monday, in which the central bank cut its key interest rate by 200 basis points to 13 percent.
This is the fifth straight reduction after the central bank had already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
Pakistan’s latest move makes this year’s cuts the most aggressive among emerging market central banks in the current easing cycle, barring outliers such as Argentina.
The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.
“The market continued its strong upward momentum, extending its record-breaking rally as investors anticipated the upcoming monetary policy review,” Topline Securities said in its daily market review.
“This was further bolstered by significant buying activity from local institutions, with the index hitting an intraday peak of 116,682.”
Monday’s move follows cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22 percent, set in June 2023 and left unchanged for a year.
It takes the total cuts to 900 bps since June.
Topline said the rise in stocks was primarily driven by strong performances from Mari Petroleum, Fauji Fertilizer, Pakistan Petroleum, Hub Power and the Oil & Gas Development Company, which collectively contributed 1,749 points.
“Trading activity remained lively, with a total volume of 1,469 million shares and a turnover of Rs 66 billion. Worldcall Telecom Limited led the volume charts, with 403 million shares traded during the session,” Topline added.
During intraday trading, analysts said the anticipation of a sharp interest rate cut together with strong liquidity with mutual funds was driving the market up.
“It is a broad-based increase, with only banks in the red today on fears of higher taxation,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News.
Pakistani stocks have been performing significantly well this month, closing at record highs multiple times.
“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
With inputs from Reuters
Pakistan telecom regulator says no VPNs blocked, deadline for ban not yet finalized
- PTA chairman says over 31,000 VPNS registered with the authority as government has been cracking down on VPN use for weeks
- Social media platform X has been blocked since February and the government is also moving to implement a national firewall
ISLAMABAD: The Chairman of the Pakistan Telecommunication Authority (PTA) said on Monday no Virtual Private Networks (VPNs) had been blocked in the country and neither had a deadline been finalized for such an action, adding that over 31,000 VPNs had officially registered with the authority in recent weeks.
The government has been cracking down on VPN use for weeks, with the PTA announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs would be blocked in Pakistan after Nov. 30. The deadline was later withdrawn, and a new one has not been announced.
Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online. The government is also moving 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.
Digital rights activists, however, say the government’s move against VPNs is an attempt to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns. The use of VPNs has sharply risen in Pakistan since February this year when the government banned X soon after allegations of rigging in general elections surfaced. The election commission denies them.
“No VPN has been blocked in the country so far,” PTA Chairman Major General (R) Hafeez Ur Rehman told Arab News on the sidelines of an event marking the launch of the authority’s annual performance report.
“No deadline has been set so far to block VPNs and we are working with the government to develop a solution that minimizes inconvenience to the public but nothing has been finalized yet,” he added, saying over 31,000 VPNs had been registered with the authority so far.
Rehman said the PTA had set up a dedicated help desk for IT companies and freelancers to facilitate VPN registration and other matters. All registration applications were processed within eight hours.
“When Internet shutdowns occur, they can approach us to get whitelisted, ensuring that their connectivity remains unaffected,” Rehman said.
“Once whitelisted, their Internet will continue to function even during government-imposed closures due to security threats or other reasons. This helps ensure that any closure of Internet due to national security measures do not disrupt their business operations as their Internet will keep working.”
Regarding frequent Internet closures, the official said the question should be addressed to the government as the PTA was implementing official orders.
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.”
The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned last month Internet slowdowns and the restriction of 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 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, P@SHA says.
