Pakistan’s Internet firewall could cost economy $300 million, association says 

A Pakistani resident uses a computer to try to enter social networking website Twitter in Quetta on May 20, 2012, after the country's government blocked the website. (AFP/File)
Short Url
Updated 15 August 2024
Follow

Pakistan’s Internet firewall could cost economy $300 million, association says 

  • Islamabad is reportedly implementing an Internet firewall to monitor and regulate content and social media platform
  • Pakistan Software Houses Association says country’s global IT clients fear proprietary data, privacy will be compromised

KARACHI: Pakistan’s economy could lose up to $300 million due to Internet disruptions caused by imposition of a national firewall, the Pakistan Software Houses Association (P@SHA) said in a press release on Thursday.

Islamabad is implementing an Internet firewall to monitor and regulate content and social media platforms, according to local media reports. The government denies the use of the firewall for censorship.

Ali Ihsan, senior vice chairman of P@SHA, said the imposition of the firewall has already caused prolonged Internet disconnections and erratic VPN performance, threatening a “complete meltdown of business operations.”

“These disruptions are not mere inconveniences; but, a direct, tangible and aggressive assault on the industry’s viability – inflicting an estimated and devastating financial losses estimated to reach $300 million, which can further increase exponentially,” he said in the statement.

Pakistan’s telecommunication authority and Pakistan’s Minister of State for Information Technology Shaza Fatima Khawaja did not immediately respond.

Earlier this month, Khawaja told local media that the government did not plan to use firewalls as a form of censorship.

Pakistan has already blocked access to social media platform X since the February elections in which jailed former prime minister Imran Khan won the most seats despite a crackdown and ban on his party.

The government has said the blocking was to stop anti state activities and a failure by X to adhere to local Pakistani laws. Rights activists say blocking X is designed to stifle critical voices and democratic accountability in the country.

In its statement, P@SHA said that the government’s lack of transparency around the firewall had “ignited a firestorm of distrust” among Internet users and Pakistan’s global IT clients who fear their proprietary data and privacy will be compromised.

P@SHA demanded an “immediate and unconditional halt to this digital siege” and called on the government to engage with the industry to develop a cybersecurity framework.

Pakistan recorded $298 million in IT exports in June, up 33 percent from the year before. During the fiscal year that ended in June, IT exports were worth $3.2 billion, up 24 percent from $2.5 billion in the fiscal year 2023. 


Pakistan appoints Amna Baloch as new foreign secretary, second woman to hold top post

Updated 8 sec ago
Follow

Pakistan appoints Amna Baloch as new foreign secretary, second woman to hold top post

  • Baloch was last serving as Pakistan’s ambassador to the European Union, Belgium and Luxembourg
  • Before Baloch, the last and only woman to serve as foreign secretary was Tehmina Janjua from 2017-2019

ISLAMABAD: Pakistan has appointed Ambassador Amna Baloch as its 33rd foreign secretary, the foreign office said on Wednesday, making her only the second woman in the country’s history to hold the top slot in the Foreign Service. 

Baloch takes over from Ambassador Syrus Sajjad Qazi who has concluded a 34-year career with the foreign service and is retiring. The last and only woman to serve as foreign secretary was Tehmina Janjua from 2017 to 2019.

“A veteran diplomat, Ambassador Baloch has held several important assignments both in Islamabad and in Pakistan’s Missions abroad,” the foreign office said as it announced the new foreign secretary’s appointment.

“She served as Pakistan’s Consul General to Chengdu, China (2014-2017); High Commissioner to Malaysia (2019-2023); Ambassador to the European Union, Belgium and Luxembourg (2023-2024).”

Baloch has a master’s degree in history and joined the Pakistan Foreign Service in 1991. She has served on various important assignments at the headquarters and missions abroad during her career including Minister Counsellor at Colombo, Sri Lanka, Joint Secretary at the Prime Minister’s Office and Additional Secretary at the Foreign Minister’s office.

Baloch is married and has two daughters.


US embassy urges citizens to reconsider travel to Pakistan amid militancy surge

Updated 5 min 12 sec ago
Follow

US embassy urges citizens to reconsider travel to Pakistan amid militancy surge

  • In new travel advisory, US warns citizens not to travel to Azad Kashmir, KP and Balochistan provinces
  • Says militants can launch attacks with “little or no warning,” advises citizens against attending protests

ISLAMABAD: The US embassy in Islamabad this week warned citizens to reconsider traveling to Pakistan “due to terrorism” and “increased risks” of violence in some parts of the country as the South Asian nation faces a surge in militant activity.

Pakistan has seen a number of high-profile attacks in recent months, including when separatist militants killed over 50 people in the country’s largest province of Balochistan in a string of coordinated attacks on army and paramilitary camps, police stations, railway lines and highways last month. Elsewhere in the country, particularly the northwestern Khyber Pakhtunkhwa province, religiously motivated groups like the Pakistani Taliban have also stepped up attacks, daily targeting security forces convoys and check posts, and carrying out targeted killings and kidnappings of security and government officials.

“Reconsider travel to Pakistan due to terrorism,” the US Embassy said in a new travel advisory issued on Tuesday. “Some areas have increased risk. Do not travel to Balochistan province and Khyber Pakhtunkhwa (KP) province, including the former Federally Administered Tribal Areas (FATA), due to terrorism [and] the immediate vicinity of the India-Pakistan border and the Line of Control due to terrorism and the potential for armed conflict.”

Highlighting risks, the embassy said militants could launch attacks with “little or no warning,” targeting transportation hubs, markets, shopping malls, military installations, airports, universities, tourist attractions, schools, hospitals, places of worship, and government facilities. 

It advised its citizens against going to protests, saying Pakistani law prohibited protests without an official permit and US citizens could be detained for participation or for posting “critical” social media content against the Pakistan government and military.

“Pakistan’s security environment remains fluid, sometimes changing with little or no notice,” the advisory said. “There are greater security resources and infrastructure in the major cities, particularly Islamabad, and security forces in these areas may be more readily able to respond to an emergency compared to other areas of the country.”

If US citizens did decide to travel to Pakistan, the embassy advised them, among other measures, to monitor local media for breaking events, remain aware of surroundings, particularly around public markets, restaurants, police installations, places of worship, government and military institutions and other locations, avoid demonstrations or other large gatherings, have evacuation plans that did not rely on US government assistance and keep travel documents up to date and easily accessible.


Visa aims for 10-fold rise in Pakistani use of digital payments

Updated 11 September 2024
Follow

Visa aims for 10-fold rise in Pakistani use of digital payments

  • Partnership with 1Link to enhance remittances and payment security
  • Pakistan has 120,541 point of sales machines, according to central bank data

KARACHI: Visa plans to increase the number of businesses accepting digital payments in Pakistan tenfold over the next three years, the payments giant’s general manager for Pakistan, North Africa and Levant told Reuters.

The comments from Leila Serhan came as Visa announced a strategic partnership with 1Link, Pakistan’s largest payment service provider, aimed at streamlining remittances into the South Asia country and encouraging digital transactions.

Pakistan, with a population of 240 million, is home to one of the world’s largest unbanked populations. Only 60 percent of its 137 million adult population, or 83 million adults, have a bank account, based on central bank estimates.

Visa is investing in building digital payment infrastructure in the country, aiming to make digital payments less costly and more manageable.

Currently, Pakistan has 120,541 point of sales (POS) machines, according to central bank data.

Visa intends to significantly increase this number. 

“Some businesses have more than one POS machine. We’re aiming at ten-folding businesses’ acceptance (of digital transactions),” said Serhan.

The strategy involves technology that transforms phones into payment instruments and accepting various forms of payment, including QR and card tap. Visa aims to expand beyond large cities and mainstream businesses to include smaller merchants.

The 1Link deal aims to improve the process for sending and receiving remittances, including bolstering payments security, boosting such transactions via legal channels.

As one of the top remittance recipients globally, Pakistan relies heavily on funds from overseas Pakistanis, which constitute a vital source of foreign exchange and significantly contribute to the country’s GDP.

“We’re really looking forward to finishing this technical integration in the coming months, and I think it’s going to be a game changer for a lot of the consumers in Pakistan,” said Serhan.

The partnership with 1Link will also enable 1Link’s PayPak cards to be accepted on Visa’s Cybersource Platform for online transactions, despite PayPak being a competitor in digital payments.

Pakistan signed a $7 billion bailout deal with the International Monetary Fund in July, which includes reforms such as raising revenue and documenting the economy.

“Digital payments are going to be at the heart of what the government wants to do from a digitization perspective, and we will continue to partner with them,” Serhan said. 


Aramco says will launch first branded gas station in Pakistan by year end

Updated 11 September 2024
Follow

Aramco says will launch first branded gas station in Pakistan by year end

  • Aramco completed acquisition of 40 percent stake in Gas & Oil Pakistan Ltd. in May this year
  • Kingdom in April reaffirmed commitment to expedite Pakistan investment package of $5 billion

ISLAMABAD: Saudi oil giant Aramco said on Wednesday it would launch its first branded retail gas station in Pakistan by the end of the year, having already completed the acquisition of a 40 percent stake in Gas & Oil Pakistan Ltd. (GO) in May.

Aramco is a global integrated energy and chemicals company that produces approximately one in every eight barrels of the world’s oil supply. GO, one of Pakistan’s largest retail and storage companies, is involved in the procurement, storage, sale and marketing of petroleum products and lubricants.

“We are working to launch our first Aramco-branded gas station in Pakistan by the end of the year,” the Saudi oil company’s media department told Arab News in an emailed statement. “Will share more information when the site is commissioned.”

A Pakistan Board of Investment (BOI) official said Aramco’s acquisition of GO represented the oil giant’s first downstream retail investment in Pakistan and signaled the company’s growing retail presence in high-value markets. 

In March, Aramco also acquired a 100 percent equity stake in Esmax Distribución SpA, a leading diversified downstream fuels and lubricants retailer in Chile.

“Our global retail expansion is gaining pace and this acquisition [of GO] is an important next step on our journey,” Yasser Mufti, Aramco Executive Vice President of Products & Customers, said in a statement in May when the GO deal was completed. 

“Through our strategic partnership with GO, we look forward to supplying Aramco’s high-quality products and services to valued customers in Pakistan. We are also delighted to welcome another high-caliber addition to Aramco’s growing network of global partners, and look forward to combining our resources and expertise to unlock new opportunities and further grow the Aramco brand overseas.”

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.

In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during a visit by Saudi Crown Prince Mohammed bin Salman to Islamabad. The agreements included about $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.

Both countries have been working in recent months to increase bilateral trade and investment, and the Kingdom in April this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.


Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

Updated 11 September 2024
Follow

Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

  • State minister highlights government’s commitment to promoting Islamic banking 
  • Central bank has set target to increase Pakistan’s Islamic banking share to 35% by 2025

ISLAMABAD: Pakistan’s State Minister for Finance Ali Pervaiz Malik said on Tuesday new Shariah-compliant certificates worth $178.6 million would be launched this month to facilitate lending activity under an interest-free system, state-run media reported.

A Shariah-compliant certificate is a document issued by the Federal Shariah Court verifying that a financial product or transaction conforms to Islamic principles and laws. Last year, the Securities and Exchange Commission of Pakistan (SECP) issued the first-ever Shariah-compliant certificate to two real estate investment trusts. In April, it also issued a license to the first Shariah-compliant brokerage house in Pakistan.

“In response to the Calling Attention Notice, Minister of State for Finance Ali Pervaiz Malik said new Shariah-compliant certificates worth $178.6 million will be launched this month,” Radio Pakistan said on Tuesday, as the minister briefed the National Assembly about the government’s “commitment to promoting Islamic banking” in the country. 

Earlier this week, Pak-Qatar Family Takaful Limited (PQFTL), a leading Pakistani Shariah-compliant family insurance provider, introduced an instant withdrawal facility for its customers, which would allow participants to withdraw partial funds in case of emergencies with ease and instant access through the company’s mobile app or its online portal. 

Last year, Pakistan’s central bank set a target to increase the share of Islamic banking in the country to 35% by 2025.

In 2021, the Federal Shariat Court, which determines whether Pakistani laws comply with Islamic law, directed the government to eliminate interest from the country’s banking system by 2027. 

At present, the share of Islamic banking in the overall commercial banking system in the country is 20%.

Pakistan has six full-fledged Islamic banks offering a wide range of products and the annual growth rate of Islamic banks’ assets and deposits has been 25% and 22% respectively over the last five years, according to central bank data.