Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders

An undated file photo of SadaPay's numberless debit card. (Photo courtesy: SadaPay/Facebook)
Short Url
Updated 19 February 2024
Follow

Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders

  • SadaPay, valued at $43-64 million in April 2022, is likely to attract up to $50 million as part of the deal
  • Turkiye’s Papara will invest $10 million in Pakistan to further increase operational capacity of SadaPay

KARACHI: Papara, a financial technology giant headquartered in Turkiye’s Ankara, is currently in talks with SadaPay, a Pakistan-based financial technology company, for a potential merger deal worth nearly $50 million, according to people familiar with the developments.

Papara, an electronic money and payment services organization, is the first non-banking entity to issue a prepaid card with Mastercard logo in Turkiye. Launched in 2016, the fintech has 18 million users and provides digital wallet services, allowing users to make payments, transfer money, and perform various financial transactions through their mobile phones or online platforms.

SadaPay, on the other hand, is regulated by the State Bank of Pakistan (SBP) and is a wholly-owned subsidiary of SadaPay Technologies Limited, registered with the Dubai International Financial Center.

The deal for “complete ownership” of SadaPay by the Turkish fintech giant is in advanced stages and if finalized, it would pave the way for an immediate investment of around $10 million in Pakistan, said sources familiar with the developments.

Reached for comment, Brandon Timinsky, CEO of SadaPay, told Arab News that he was “not able to provide any official statement at this time.”

Other key officials of SadaPay also declined to comment, but a fintech source called the possible merger a “good development” for Pakistan.

“This is a good development for Pakistan’s startup ecosystem,” the official said, requesting anonymity. “This deal will pave the way for further investment of around $10 million in addition to actual value of the deal to boost operational capacity [of SadaPay].”

He said the deal would likely be in the range of $30-50 million, under which “100 percent ownership” of SadaPay would be transferred to the Turkish firm.

Dealroom.com, a global provider of data and intelligence on startups and tech ecosystems, valued SadaPay at $43-64 million in April 2022.

The final details of the deal are expected to be made public after a regulatory approval from the Pakistani central bank.


Pakistan tops world chart in financial losses due to Internet shutdowns in 2024

Updated 11 sec ago
Follow

Pakistan tops world chart in financial losses due to Internet shutdowns in 2024

  • Internet disruptions lasted 9,735 hours in Pakistan and impacted 82.9 million users last year
  • The South Asian country of more than 240 million people incurred a total of $1.62 billion losses

ISLAMABAD: Pakistan suffered highest financial losses in the world this past year due to Internet outages and shutdown of social media applications, a global Internet monitor said this week.
The South Asian country of more than 240 million people remained the single most affected nation in the world in 2024, incurring a total of $1.62 billion financial losses.
This was higher than the cost in civil war-ravaged countries like Sudan and Myanmar, according to a report released by Top10VPN.com, an independent VPN reviewer, on Jan. 2.
The monitor said Internet disruptions lasted 9,735 hours in Pakistan and impacted 82.9 million users, citing election and protests as major reasons behind these outages in the South Asian country.
“Asia was by far the most-affected region, thanks to the particularly impactful Internet restrictions in Pakistan, Myanmar, Bangladesh and India,” it said. “These nations were four of the six most-affected countries in 2024.”
In Feb. 2024, Pakistan held its general election that was marred by a mobile Internet shutdown and unusually delayed results, leading to accusations that it was rigged and drawing concern from rights groups and foreign governments. Pakistani election authorities denied the allegations.
Opposition parties, mainly former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, held several protest rallies last year to demand an audit of the election results. Day later, social media website X went down in Pakistan, with the government saying the block was for “security reasons.”
Worldwide, according to Top10VPN.com, Internet shutdowns caused economic losses of $7.69 billion in 2024. These outages lasted 88,788 hours, a 12 percent increase from 2023 and highest to date, and affected 648.4 million people across the globe.
“This kind of deliberate outage is Internet censorship in its most extreme form,” the monitor said. “Not only do they infringe on citizens’ digital rights but they are also catastrophic acts of national economic self-sabotage.”
The calculations were made using the Cost of Shutdown Tool (COST), based on indicators from the World Bank and other global institutions.


Pakistan weekly inflation records slight decrease after rising for three consecutive weeks

Updated 04 January 2025
Follow

Pakistan weekly inflation records slight decrease after rising for three consecutive weeks

  • Major decrease observed in prices of tomatoes, electricity, potatoes, eggs, liquefied petroleum gas and wheat flour
  • Pakistan’s annual consumer inflation eased further to 4.1 percent in Dec. 2024, according to the country’s statistics bureau

ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), has witnessed a slight decrease in Pakistan, the country’s statistics bureau said this week, after increasing for three weeks in a row.
The SPI, which comprises 51 essential items collected from 50 markets in 17 cities, is computed on a weekly basis to assess the price movement of essential commodities at a shorter interval of time to review the price situation in the country.
The SPI for the week ending on Jan. 2 decreased 0.26 percent on a week-on-week basis, according to the Pakistan Bureau of Statistics (PBS). Weekly inflation last decreased by 0.34 percent in Pakistan in the week ending on Dec. 5.
“During the week, out of 51 items, prices of 18 (35.29 percent) items increased, 10 (19.61 percent) items decreased and 23 (45.10 percent) items remained stable,” the PBS said in its report.
Major decrease was observed in the prices of tomatoes (13.48 percent), electricity charges for Q1 (7.48 percent), potatoes (5.59 percent), eggs (0.23 percent), garlic (0.21 percent), liquefied petroleum gas (0.18 percent) and wheat flour (0.09 percent).
The items whose prices increased during the week included chicken (10.28 percent), onions (4.93 percent), bananas (1.68 percent), diesel (1.18 percent), sugar (0.95 percent), jaggery (0.58 percent), vegetable ghee 2.5 Kg (0.53 percent) and petrol (0.21 percent).
Pakistan’s annual consumer inflation eased further to 4.1 percent in Dec. 2024, according to the PBS. Consumer inflation cooled from 4.9 percent in November, a sharp drop from a multi-decade high of nearly 40 percent in May 2023.


Pakistan condemns Israel’s ‘deliberate’ targeting of Gaza hospitals, calls for accountability

Updated 59 min 6 sec ago
Follow

Pakistan condemns Israel’s ‘deliberate’ targeting of Gaza hospitals, calls for accountability

  • The statement comes a week after Israeli forces burned Kamal Adwan Hospital in Gaza, forcefully removing patients and staff
  • Israel’s military campaign in Gaza has killed more than 45,000 people and forced hundreds of thousands to migrate since Oct. 2023

ISLAMABAD: Pakistan has condemned Israel’s “deliberate” targeting of hospitals, patients and wounded people in Gaza, and called for its accountability over attacks on health infrastructure and other crimes.
The statement came a week after Israeli forces burned Kamal Adwan Hospital in Gaza and forcefully removed patients and medical staff from the facility, hospital officials said.
In its campaign since Oct. 2023 attacks by Hamas, Israel’s military has targeted hospitals, schools and residential neighborhoods in Gaza, killing more than 45,000 people and forcing hundreds of thousands to migrate, according to Palestinian officials.
Ambassador Asim Iftikhar, Pakistan’s alternate permanent representative to the United Nations, called the destruction of Kamal Adwan Hospital, the last operational major facility in northern Gaza, an “atrocity that shocks the conscience of humanity.”
 “The deliberate targeting of hospitals, medical personnel, patients and wounded defies every principle of [international] humanitarian law and has no justification whatsoever,” he told a UN Security Council session on the collapse of health services in besieged Gaza.
“Not just condemnation, there must be accountability for these crimes.”
Between Oct. 2023 and Jun. 2024, at least 136 strikes were carried out on 27 hospitals and 12 other medical facilities, according to the Pakistani diplomat. More than 500 health care workers lost their lives due to the Israeli military campaign in Gaza.
He said 22 of Gaza’s 38 hospitals were rendered non-functional by June 2024 that had left the health care system on “the verge of collapse,” calling for a “decisive action” for an immediate and unconditional ceasefire to halt bloodshed and destruction in Gaza and lifting of the enclave’s inhumane blockade to ensure the flow of food, medical supplies and humanitarian aid for those in “desperate need.”
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.


Protesters block key Pakistan-China trade route over power outages in Gilgit-Baltistan

Updated 04 January 2025
Follow

Protesters block key Pakistan-China trade route over power outages in Gilgit-Baltistan

  • Residents report facing 20-hour outages despite the construction of several power stations
  • Officials say the region relies on hydropower, which is disrupted in winter due to freezing rivers

KHAPLU, Gilgit-Baltistan: A key land route connecting Pakistan and China was blocked indefinitely by angry protesters in northern Gilgit-Baltistan on Friday, as hundreds of them staged sit-ins against prolonged power outages in the region.
The Karakoram Highway (KKH), a vital trade route between the two countries, was obstructed at Ali Abad, a significant point in the Hunza Valley. The area has witnessed a gradual increase in trade activity following an agreement between Pakistan and China to keep the Khunjerab Pass open year-round to facilitate economic exchanges.
Last month, Pakistan’s National Logistics Corporation conducted its first international cargo transportation via the border, moving goods from China to the United Arab Emirates.
“Hunza is experiencing severe power outages,” Zahoor Ilahi, a protest leader from the Awami Workers Party, told Arab News over the phone. “That’s why we have blocked the Karakoram Highway.”
“The highway has been blocked for all kinds of traffic at Ali Abad since afternoon, and we will not end the sit-in until our demands are met,” he added. “The government is not running the thermal station generators, and all parts of Hunza are facing over 20 hours of power crisis.”
Protests were also held in other parts of Hunza, including Sost and Gulmit, with shutter-down strikes observed against the prolonged power crisis.
“There has been no progress in the power sector for the last three to four years in Hunza,” Rehan Shah, a local resident of the area, told Arab News. “The speed of work on the power projects is very slow, and all residents want an uninterrupted supply of electricity.”
Shah said the protests were jointly organized by various political parties and trade associations in the region.
Meanwhile, protests were also observed in other parts of Gilgit-Baltistan, including Danyor in Gilgit city.
Speaking to Arab News, Advocate Ehsan Ali, president of the Awami Action Committee, said that most districts in the region were facing prolonged power cuts.
“The duration of the power crisis in Gilgit city is about 20 hours,” he said. “Skardu is facing 21 to 22 hours of power cuts, and Hunza is also experiencing the same. Similarly, districts like Ghizer and Chilas are also dealing with the worst kind of power outages.”
“Millions of rupees have been spent on power projects, but unfortunately, none are producing enough electricity,” he said. “In the 21st century, electricity is still unavailable here.”
Hamid Hussain, an engineer at the Gilgit-Baltistan Water and Power Department, acknowledged the issue but attributed it to technical reasons, saying the region heavily relied on hydropower, which often faced disruption in winter due to the freezing of rivers and lakes.
“There are 137 power stations in Gilgit-Baltistan,” he told Arab News. “The installed capacity of these power stations is 190 megawatts. However, power generation is 140 megawatts during the summer while 76 megawatts during the winter due to the low flow of water.”
“The residents of Hunza are demanding thermal generators,” he added. “But we can’t run them due to financial reasons. There are many thermal generators in Gilgit, but we can’t fulfill people’s demand due to the high fuel cost.”
Hussain said his department would run the thermal generators to reduce the power crisis if the government decided to release funds.


Pakistan’s Saim Ayub ruled out of second South Africa Test after twisting right ankle

Updated 04 January 2025
Follow

Pakistan’s Saim Ayub ruled out of second South Africa Test after twisting right ankle

  • Ayub fell awkwardly in the outfield and was visibly in lot of pain as he received brief treatment on the ground
  • South Africa dominated the day 1 at Newlands and piled up 316 for four, with Ryan Rickelton hitting 176 not out

ISLAMABAD: Pakistan had an injury scare when opening batter Saim Ayub twisted his right ankle on the field on day 1 of the second and final Test against South Africa on Friday.
Ayub fell awkwardly in the outfield and was visibly in lot of pain as he received brief treatment on the ground before he was rushed to a hospital for precautionary scans.
The opening batter has been ruled out of further participation in the second Test, according to the Pakistan Cricket Board (PCB).
“Saim underwent X-rays and MRI tests this afternoon and the reports have been sent to specialists in London for further advice on the treatment and time away from competitive cricket,” the PCB said in a statement.
South Africa dominated the day 1 of the second Test at Newlands and piled up 316 for four, with Ryan Rickelton hitting 176 not out. He shared a fourth-wicket partnership of 235 with his captain, Temba Bavuma, who made 106.
South Africa have already sealed a place in June’s World Test Championship final with a dramatic two-wicket win in the first test at Centurion.