Pakistan’s IT minister to visit Saudi Arabia for talks on tech sector investment

Pakistan's Caretaker Information Technology Minister Dr Umar Saif speaks to Arab News in Islamabad, Pakistan on September 27, 2023. (AN photo)
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Updated 28 September 2023
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Pakistan’s IT minister to visit Saudi Arabia for talks on tech sector investment

  • Umer Saif says local information technology firms can play a pivotal role in implementing Saudi Arabia’s Vision 2030
  • The IT minister informs Pakistan will begin to auction 5G spectrum in the coming months to secure fresh investment

ISLAMABAD: Caretaker Information Technology Minister Umar Saif will embark on an official visit to Saudi Arabia on Saturday to discuss job opportunities for skilled Pakistanis in the kingdom’s thriving IT sector and to get an update on a $100 million Saudi-Pakistan Tech House project announced earlier this year.

The project aims to foster a strategic partnership between IT firms and enterprises based in the two countries. It was first mentioned by Prince Fahad bin Mansour at Future Fest 2023, organized in Pakistan in January.

This joint technology initiative aligns perfectly with Saudi Arabia’s Vision 2030, which seeks to diversify its economy by reducing dependence on oil and transforming into a global investment hub with robust digital infrastructure.

“I am going to the kingdom to witness the revolution that is happening in Saudi Arabia where, because of the vision of Crown Prince Mohammed bin Salman, the country has transformed itself at a revolutionary pace as a modern and forward-looking economy beyond the petrodollars and toward the knowledge economy, an economy that moves forward because of the use of technology,” the minister told Arab News in an interview on Wednesday.

He said that numerous Indian, Irish and other global companies were participating in the revolution, emphasizing that Pakistan’s tech-savvy youth and IT firms also had the potential to significantly contribute to Vision 2030.

“So, that is one part of what I hope to discuss during my visit to Saudi Arabia,” he continued. “The second part is Pakistan’s attraction as a big opportunity for investments in the technology sector since it is at the cusp of taking off in terms of a technology revolution that is about to unfold in this country.”

Saif said he wanted to encourage people to explore investment opportunities in Pakistan by highlighting the benefits of the Special Investment Facilitation Council (SIFC), a civil-military forum established in June to attract foreign funding by streamlining bureaucratic procedures for businesses looking to set up operations in the country.

Discussing Prince Mansour’s Tech House project, he said he was looking forward to his meeting with the Saudi royal to get an update on its progress.

The minister noted that the Gulf Cooperation Council (GCC) market was highly attractive for Pakistani IT firms, many of which were already engaged in projects in the region.

“We are working to market Pakistan as a place from where a lot of technical expertise can come for projects in the GCC region,” he added.

He noted that with 85 percent unbanked adult population in the country, Pakistan had great investment opportunities in fintech and edtech sectors alongside cellphone manufacturing.

Saif said the country had 194 million cellphone and 70 million broadband users, reflecting its potential in the IT sector, though it lacked adequate fiber infrastructure and data connectivity.

“All these things offer great investment opportunities to big companies in the GCC region and Saudi Arabia to come and invest in these large projects that will certainly move Pakistan’s economy forward and offer very good investment opportunities to people outside this country,” he said.

The minister said Pakistan’s official IT exports were $2.6 billion, adding that the actual figure should be higher due to funds kept at the overseas locations with favorable taxation and repatriation policies.

“Of course, we are trying to fix that and will soon begin to see the true potential of Pakistan’s IT industry,” he said.

Asked about the longstanding property-transfer dispute with the United Arab Emirates’ Etisalat telecom company involving $800 million, he said Pakistan was about to do a 5G auction of new spectrum to bring fresh investment which made it imperative for the country to resolve the issue soon.

“We have to be realistic in terms of how much that asset is worth and I think our friends at Etisalat also need to take a strategic view of [the situation],” he added. “Where we can see value, they can also resolve it and so that we can get on with business and we can unlock the bigger opportunities for Etisalat and similar GCC companies coming in.”

The minister said Pakistan had the second largest online workforce in the world, with about half a million freelancers who found it receive their payments.

“We are working with PayPal to bring it in [Pakistan] following the Egypt model, where they have partnered with Visa,” he added.

Saif said Pakistan was also hoping to finalize a deal within the next 60 days with Stripe, another payment processing platform, along the same model.
 


Pakistan extends condolences to Afghanistan after flash floods kill over 150

Updated 11 May 2024
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Pakistan extends condolences to Afghanistan after flash floods kill over 150

  • Heavy rains on Friday caused flash floods in Afghanistan’s Baghlan, Takhar and Badakhshan provinces
  • Pakistan stands in solidarity with people of Afghanistan during this difficult time, the foreign office says

ISLAMABAD: Pakistan on Saturday extended condolences to the Afghan government over the loss of more than 150 lives in flash floods in northern Afghanistan, the Pakistani foreign office said.
Heavy rains on Friday caused flash floods in Baghlan, Takhar and Badakhshan provinces that have killed 153 people and injured another 138, according to the interim Afghan interior ministry.
Afghanistan’s Taliban authorities sent helicopters overnight to assist civilians after reports emerged that over 100 people were stranded in these areas.
“The Government and the people of Pakistan express their heartfelt condolences on the tragic loss of life and widespread damage to property caused by heavy rains and flash floods in several provinces of Afghanistan,” the Pakistani foreign office said in a statement.
“Our thoughts and prayers are with the families of the victims, injured and the communities affected by this natural calamity and we pray for the early recovery of those missing.”
Pakistan stood in solidarity with the people of Afghanistan during this difficult time, it added.
Pakistan itself experienced its “wettest April since 1961,” the country’s weather agency said this month, with at least 144 deaths in thunderstorms and house collapses due to heavy rains.
April rainfall was recorded at 59.3 millimeters, “excessively above” the normal average of 22.5 millimeters, Pakistan’s metrology department said in its monthly climate report.
While much of Asia was sweltering due to heatwaves, Pakistan’s national monthly temperature for April was 23.67 degrees Celsius (74 degrees Fahrenheit) 0.87 degrees lower than the average of 24.54, the report noted.
In the summer of 2022, a third of Pakistan was submerged by unprecedented monsoon rains that displaced millions of people and cost the country $30 billion in damage and economic losses, according to a World Bank estimate.


Pakistan PM calls recent diplomatic, trade engagements with Saudi Arabia ‘great progress’

Updated 11 May 2024
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Pakistan PM calls recent diplomatic, trade engagements with Saudi Arabia ‘great progress’

  • The statement came days after Saudi minister Ibrahim Al-Mubarak led high-level business delegation to Pakistan
  • Pakistan and Saudi Arabia have lately been working to increase bilateral trade and investment in multiple fields

ISLAMABAD: Prime Minister Shehbaz Sharif has described the recent diplomatic and trade engagements between Pakistan and Saudi Arabia as “great progress,” saying both countries now have a way forward for mutual cooperation in several fields.

Sharif said this in an interview with Al-Arabiya News Channel, days after Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak led a delegation to Pakistan that comprised representatives of some 30 Saudi companies from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development. The Saudi delegates held business-to-business (B2B) with Pakistani counterparts to explore various trade and investment opportunities in the South Asian country.

The visit by the Saudi business delegation came on the heels of one by Sharif to Riyadh on Apr. 27-30, where he met the Saudi Crown Prince and discussed with him bilateral economic partnership. This was Sharif’s second meeting with the crown prince in a month. Before that, he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh.

During the interview, Sharif said both countries had achieved “great progress” from the recent engagements and talks were being held between both sides with regard to certain fields.

“So far, we have achieved great progress. We have identified areas of mutual cooperation, both at the level of G2G, government-to-government, and B2B, business-to-business,” the prime minister said. “And we have now a clear-cut way forward, mutual cooperation, investments in the fields of mines and minerals, renewable energy.”

Sharif said Saudi Arabia had acquired great expertise in solar energy and a Pakistani delegation was in Riyadh for talks with Saudi Arabia’s ACWA Power, which has a portfolio of power generation and desalinated water production plants in the Kingdom as well as several countries.

Pakistan and Saudi Arabia have lately been working to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.

The two countries enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.


Pakistan telecom operators agree to block mobile connections of tax non-filers — regulator

Updated 11 May 2024
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Pakistan telecom operators agree to block mobile connections of tax non-filers — regulator

  • Last month, the tax regulator said it had decided to block mobile connections of 500,000 people who did not file tax returns
  • The FBR has communicated the first batch of 5,000 non-filers to telecom operators for blocking of their mobile connections

ISLAMABAD: Telecom operators in Pakistan have agreed to block mobile phone connections of individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Saturday, with the first batch of non-filers, including 5,000 individuals, already communicated to the operators.

Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.

In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.

Late last month, the tax regulator said it had decided to block mobile connections of 500,000 people who had not filed their tax returns and has since engaged with the Pakistan Telecommunication Authority (PTA) and telecom Operators to enforce its income tax general order.

“After several deliberations, the telecom operators have agreed to initiate the manual blocking process in small batches until their systems are fully equipped to automate it,” the FBR said in a statement.

“In this regard, the first batch comprising 5000 non-filers has been communicated to the telecom operators today for compliance regarding SIM blockage.”

Subsequent batches will be sent to telecom operators on a daily basis, according to the FBR. The operators have also started sending messages to non-filers regarding blocking of their connections.

The development comes amid efforts by the government to broaden the tax base, including digitalization of the tax collection system to prevent leakages as a large segment of the national economy remains undocumented.

Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.


Pakistan health ministry to launch national program to address malnutrition in country

Updated 11 May 2024
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Pakistan health ministry to launch national program to address malnutrition in country

  • Pakistan has witnessed extensive consequences of malnutrition, including birth defects, impaired brain development, reduced work capacity
  • Ministry says the government is cognizant of serious situation of malnutrition aggravated by global conflicts, climate change leading to food insecurity

ISLAMABAD: Pakistan’s national health ministry said on Saturday it had decided to launch a national nutrition program to address the issue of malnutrition in the country, in coordination with the planning ministry and provincial governments.

The decision was made at a maiden meeting of the National Nutrition Task Force, presided over by Health Secretary Nadeem Mahbub. The high-level task force was constituted on the directives of Prime Minister Shehbaz Sharif.

Pakistan has witnessed extensive consequences of malnutrition, including devastating birth defects for babies, impaired brain development in young children, and reduced work capacity among adults. 

The health ministry said the incumbent government was cognizant of the serious situation of malnutrition aggravated by global conflicts and climate change leading to food insecurity and high inflation.

“The [task force] has been constituted to provide technical oversight and guidance on Nutrition Policy and programming, developing future directions and roadmaps for nutrition landscape in the country and facilitate and carry out inter-sectoral and multisectoral coordination and advocacy around nutrition,” it said in a statement.

The ministry said it had directed its nutrition wing to prepare a new PC1, planning tool for the development of a project, in coordination with the Planning Commission and the Benazir Income Support Program (BISP) to avoid duplication and cover the areas and interventions which were not covered previously.

In his remarks, Additional Health Secretary Syed Moazzam Ali highlighted the importance of fresh data on malnutrition for proper policy and programming and stressed the need to carry out the National Nutrition Survey as soon as possible.

“Provinces are the real game changers in the success of any program and their strong collaboration and commitment toward nutrition programming is pivotal to address malnutrition in the country,” he said.

Special Health Secretary Syed Waqar-ul Hassan stressed upon the need for convergence of all sectors and stakeholders to address the root cause of malnutrition, highlighting that the ministry alone could not eliminate malnutrition.

The meeting was attended by country representatives of the United Nations World Food Program (WFP), United Nations Children’s Fund (UNICEF), representatives from donor and UN organizations, international and national NGOs, line ministries and provincial government representatives along with academia.

Dr. Mehreen Mujtaba, nutrition director at the health ministry, shared Pakistan would hold its first-ever National Nutrition Conference in June-July, this year to get the guidance of local and international experts in the fields of health and nutrition, thanking participants for their valuable contributions to the meeting.


Ex-president Alvi denies being picked to head PTI amid reports of talks with army

Updated 11 May 2024
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Ex-president Alvi denies being picked to head PTI amid reports of talks with army

  • The statement came amid speculation about Alvi being made PTI chairman to resolve party’s issues with establishment
  • These speculations create confusion in a party whose leadership is ‘wrongfully and unjustly incarcerated,’ Alvi says

ISLAMABAD: Arif Alvi, former president and a close aide of jailed former prime minister Imran Khan, on Saturday denied being appointed chairman of Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party.

The statement came amid widespread speculation about Alvi being made the PTI chairman to resolve the party’s issues with the powerful military establishment whom Khan has accused of sidelining him, according to some media reports.

The reports suggested the former president had been tasked with the “important” job following his meeting with Khan at Adiala jail in Rawalpindi, however, Alvi denied these reports.

“There is unnecessary speculation that Mr.@ImranKhanPTI intends to appoint me as Chairman of the party. There is no such thing being envisaged by my leader nor was it discussed in my meeting with him,” he said on X.

“These speculations create confusion in a party whose leadership is wrongfully & unjustly incarcerated.”

Alvi said the incumbent PTI chairman Gohar Khan was leading the party well. “I would like to put this inaccurate non-issue to rest with a clear denial,” he added.

Alvi’s meeting with Khan came a day after the ex-premier reportedly turned down the Pakistani military’s demand to apologize for the violent protests, allegedly staged by his supporters over his brief arrest in a graft case, that targeted military installations and public property on May 9, 2023.

Hundreds were arrested in the aftermath and some were tried by military courts after the authorities promised to bring the perpetrators and instigators of the violence to justice.

During the alleged crackdown against the PTI, Alvi, who was the then president, was said to be making efforts to bridge the gap between his party and Pakistan’s powerful military.

Khan was ousted in 2022 after falling out with Pakistan’s powerful military leaders who many say backed him into power in 2018. In opposition, he waged an unprecedented campaign of defiance against the military establishment which has directly ruled the South Asian nation for nearly half of its history.

Arguably Pakistan’s most popular politician, Khan says the cases against him are “politically motivated,” aimed at keeping him from returning to power. The military denies it.