KARACHI: As the country surges ahead with a financial technology (FinTech) revolution, Pakistan’s central bank said on Monday that it has launched laws for Electronic Money Institutions (EMIs) as a step toward issuing digital currency by 2025.
The regulations – which have been designed with the help of the World Bank — will also seek to cover other requirements such as outsourcing activities, anti-money laundering and counter-terror financing measures, consumer protection, complaint handling mechanism, oversight and regulatory reporting.
EMIs are non-bank entities that will be licensed by the State Bank of Pakistan (SBP) to issue e-Money for the purpose of digital payments.
On Monday, Finance Minister Asad Umar stressed on the need to safeguard financial institutions as “cybersecurity was a growing threat” and termed the launch of the electronic money institutions as a game changer in promoting e-Commerce and a digital economy in the country.
“This new category of institutions will complement the efforts of the government in creating an enabling environment to empower stakeholders in trade and commerce. This will help businesses in improving their productivity and contribute toward positioning the nation for global competition,” he said.
Officials from the SBP concurred. “These landmark regulations are a testament of the SBP’s commitment toward openness, adoption of technology and digitization of our financial system,” Jameel Ahmad, Deputy Governor of SBP, said, adding that the SBP is transforming itself into a modern, digital and technology-oriented bank.
He said that the SBP is working on issuing digital currency by 2025, with the aim to promote financial inclusion and reduce corruption, and inefficiency.
“Our currency will remain the same, but as opposed to existing online payment services — where there is the backing of any financial institution — there will be not [be any] financial institution which we are going to bring in,” Abid Qamar, spokesman of the SBP said dispelling the impression that the central bank was going to issue a cryptocurrency.
Financial experts lauded the initiative as a “landmark in FinTech space”, terming it as the most progressive measure taken by the SBP in years.
“The launch of e-Money regulations…is a key landmark in our FinTech space. This way, Fintechs have been empowered to open and manage accounts themselves. This day is going to mark the inflection point for digital payments in Pakistan. We need this sort of speed and regulatory environment to set the ground for our FinTechs to flourish,” Khurram Schehzad, a senior financial analyst and CEO of Alpha Beta Core — a financial advisory firm, said.
Meanwhile, experts said that the initiative will place Pakistan among the few nations in the world who have adopted e-Money mechanisms. “This initiative is capital intensive and would help Pakistan achieve financial inclusion, especially in the rural sector of the country,” S. M. Arif, a financial and banking technologist, told Arab News.
He added that it would also help small and medium enterprises, the farming community, and rural dwellers gain access to financial instruments. “By enabling this regulations authorities have enabled wider base of population whether Urban or Rural, to have access to finance through these new digital mode of payments from verity of players. This will require proper and frequent education of masses from issuers to make good use of such facilities and safety of these instruments” he said, before quickly adding that “the business model must be made keeping in view the local market requirements and security threats as copy pasting a foreign model may backfire”.
Pakistan to tap into digital currency potential by 2025
Pakistan to tap into digital currency potential by 2025
- Move to address cybersecurity threats faced by institutions, FM Umar says
- Launch of e-Money regulations a key landmark in FinTech space, analysts add
Traders in southwestern Pakistan shutter businesses to mourn Mastung blast victims
- At least 60 people were killed on Friday when a blast targeted a gathering in Mastung
- Shops and bazaars in Mastung, Kalat, Khuzdar and Quetta districts wear deserted look
ISLAMABAD: Traders in multiple districts of southwestern Pakistan closed their shops and businesses on Sunday to mourn victims of Friday’s suicide blast that killed over 50 in Mastung city.
At least 60 people were killed and 53 were injured on Friday when a suicide blast targeted a gathering in Mastung held to celebrate Prophet Muhammad’s (peace be upon him) birthday.
Two days after the blast, markets and shops in Balochistan’s Quetta, Kalat, Mastung, and Khuzdar districts wore a deserted look after traders announced a shutter-down strike to mourn victims of the blast.
“We have been observing shutter-down strikes in Quetta, Mastung, Kalat, and Khuzdar to mourn the people killed in the Mastung blast,” Abdul Rahim Kakar, president of the Anjuman e Tajiran Balochistan, the most prominent association of traders in the province, told Arab News.
“The blast has shattered the entire province, directly impacting business activities in Balochistan,” Kakar continued. “We demand the government arrest the terrorists involved in the suicide attack on innocent people.”
No group has yet claimed responsibility for the attack, while the Pakistani Taliban distanced themselves from the incident.
Following the blast, Balochistan’s provincial government announced three days of mourning, saying that the national flag would fly at half-mast in all government offices.
Muhammad Yousaf Muhammad Shahi, general secretary of the Mastung Bazaar Association, told Arab News that bazaars and markets in Mastung are closed today, Sunday. He said the local population is gripped with fear after the blast.
“In every street and village of Mastung, mourning prayers are continuing for the victims,” Shahi told Arab News over the phone. “People of Mastung have been witnessing attacks in recent years, which should be stopped now.”
Situated near the provincial capital of Quetta, Mastung is mostly mentioned in the news due to incidents of sectarian violence, insurgency, and militant attacks. The security situation in the area has been volatile for years and it is widely considered as one of the more sensitive districts in Balochistan from a security perspective.
Proscribed entity Daesh, known for attacks in Pakistan and beyond on religious gatherings and minorities, has strong footprints in Balochistan, particularly Mastung.
Pakistan’s interior minister on Saturday accused India’s intelligence agency of having a hand in the blast while Pakistan’s army chief General Syed Asim Munir vowed that the security operation against militants would continue “unabated.”
Saudi Arabia’s SME authority to help Pakistani IT companies scale businesses in Kingdom— minister
- Pakistan’s IT minister is in Saudi Arabia with a delegation of tech companies to explore business opportunities
- Pakistan to work with Digital Cooperation Organization on ‘digital passport’ for Pakistani companies, says Saif
ISLAMABAD: Saudi Arabia’s Small and Medium Enterprises General Authority (Monsha’at) will work with Pakistan to support its IT companies and startups to scale their businesses in the Kingdom, Caretaker IT Minister Umar Saif announced on Sunday.
Established in 2016, Monsha’at aims to regulate, support, develop, and sponsor the SME sector in Saudi Arabia. According to its website, the authority is mandated to develop and support programs and projects that foster a culture of self-employment, entrepreneurship, and innovation.
Pakistan’s IT minister is in Saudi Arabia with a delegation of tech companies to explore business opportunities in the Kingdom. Saif wrote on the social media platform X that he visited Monsha’at’s office in Riyadh and met the authority’s Governor Sami Ibrahim Alhussaini.
“Monsha’at is mandated to support small and medium companies in Saudia, and they will be working with us to support Pakistani IT companies and startups to scale their businesses in Saudia,” Saif wrote.
The minister also visited the office of the Digital Cooperation Organization— a multi-nation body that works toward the growth of the digital industry— in Saudi Arabia and met its secretary-general, Deemah AlYahya.
He said Pakistan would host the Digital Direct Foreign Investment summit every year for all DCO member states.
“We will be working with DCO for a ‘digital passport’ for Pakistani companies which will enable them to quickly start a business in DCO member countries, starting with Saudia,” Saif wrote.
During an exclusive interview with Arab News earlier this week, Saif said the Gulf countries were a highly attractive market for Pakistani IT firms, many of whom 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 said.
The minister added that during his visit to the Kingdom, the Pakistani delegation will also receive updates on the $100 million Saudi-Pakistan Tech House project announced earlier this year, which aims to strengthen strategic partnerships between IT firms in both countries.
Pakistan to kick off anti-polio campaign in Khyber Pakhtunkhwa from Monday
- The five-day campaign aims to vaccinate 7,478 million children across the province
- Children below 5 years of age will be vaccinated across five divisions during first phase
ISLAMABAD: Pakistan’s health authorities have finalized preparations to launch an anti-polio campaign in the country’s northwest that aims to vaccinate 7,478 million children in the area, a report in the state-run Associated Press of Pakistan (APP) said on Sunday.
According to APP, the five-day campaign will commence across KP from Monday, Oct. 2, and during its first phase, children below five years of age will be administered polio drops in Peshawar, Kohat, Mardan, Malakand, and Hazara divisions.
Polio is a highly infectious and incurable disease caused by the poliovirus, which mainly affects children under the age of five. The virus invades the nervous system and can cause paralysis or even death in some cases. Pakistan and Afghanistan are the only two countries in the world where polio remains endemic.
“In the first phase of the campaign, around 63,628,95 children will be vaccinated against polio in all districts of Peshawar, Kohat, Mardan, Malakand, and Hazara divisions,” an official of the National Emergency Operation Center was quoted as saying by the APP.
During the second phase of the campaign, from Oct. 9-13, around 11,1681 children in Bannu and Dera Ismail Khan divisions will be vaccinated against the disease, the official added.
“During this anti-polio campaign, vitamin A will also be given to children to increase their immunity,” the official said, adding that children up to the age of five living in Afghan refugee camps throughout the province would also be vaccinated.
He said a total of 34,551 teams of trained polio workers would take part in the campaign, adding that around 54,567 police personnel have been deployed to ensure their security.
Attempts to eradicate polio in Pakistan have been hit by attacks targeting inoculation teams that have claimed hundreds of lives in over a decade.
Opposition to all forms of inoculation grew after the US Central Intelligence Agency organized a fake vaccination drive to help track down Al-Qaeda’s former leader Osama Bin Laden in the Pakistani garrison town of Abbottabad.
2 militants, police constable killed during gunbattle in eastern Pakistan— Punjab CTD
- Militants attack police patrolling post in Esakhel town in Mianwali district, says Punjab CTD
- Clash between police, militants takes place days after two suicide blasts killed 65 in Pakistan
ISLAMABAD: Two militants and a police constable were killed during a gunbattle between Punjab’s Counter-Terrorism Department (CTD) and militants on Sunday in the country’s eastern Mianwali district, police said.
According to a statement by the Punjab CTD, militants attacked a police patrolling post in Esakhel town located in Mianwali, prompting a heavy exchange of fire between the two sides.
“After four hours of intense fighting, CTD Punjab killed two terrorists while another was severely injured,” Punjab’s Inspector General Dr. Usman Anwar was quoted as saying in a statement by police.
“A search and sweep operation in the area is underway.”
Anwar said the slain militants were involved in various militant activities across the country, adding that police were further investigating the case.
“Police are further probing the case while the militants’ accomplices are being pursued,” Anwar was quoted as saying.
He appreciated CTD Punjab for foiling the attack and killing the militants, heaping praise on the police constable who was killed in the exchange of fire.
“We salute Constable Haroon Khan who achieved the lofty status of martyrdom during the line of duty,” Anwar was quoted as saying.
The clash between Punjab CTD and militants takes place days after two bomb blasts in Pakistan’s southwestern and northwestern provinces killed at least 65 and injured scores.
On Friday, a suicide blast targeted a crowded gathering held to mark the birthday of Prophet Muhammad (peace be upon him) in Mustang city, killing at least 60 people. Hours later, an explosion in Pakistan’s northwestern Hangu city killed five others.
No militant outfit has so far taken credit for the attacks. Pakistan has accused India of having a hand in the attacks and has vowed to hunt militants across the country.
In Pakistan’s Gilgit city, new women’s market is ‘one-stop shop’ for gems and handicrafts
- Riverside market in Gilgit was inaugurated in August to develop tourism and economically empower local women
- With 24 shops, market has a wide variety of handmade products that showcase the rich cultural heritage of the region
GILGIT: Every day at the break of dawn, 28-year-old Haseena Farman unlocks her riverside shop of handcrafted shawls, sweaters, gemstones and decorative items and waits for customers.
Business has been going well since she opened the store in a recently inaugurated, eco-friendly women’s market that has become a godsend for women entrepreneurs in the mountainous northern city of Gilgit.
The market, which was inaugurated in August and has 24 shops so far, is a joint project of the Gilgit Development Authority and the Women Chamber of Commerce and Industry and has, in the words of businesswomen like Farman, given them a “special place” of trade in a region where, like many other parts of Pakistan, cultural and religious norms and social expectations act as barriers to prevent women’s entry into the business sector.
According to Gilgit-Baltistan’s Education Department, the female literacy rate in the area has been recorded at 41 percent while the male literacy rate has been recorded at 66 percent. Despite high literacy rates, women form only 15.5 percent of the labor force in Gilgit-Baltistan, according to data by the Agha Khan Rural Support Network, a non-profit company.
“Earlier, we [women] didn’t have a special space [to sell our products],” Farman told Arab News. “I used to make these items for my cousins, relatives and sisters … After the opening of this market, we have got a proper setup.”
“So far, it’s going well and I hope it will also continue to be like this in the future.”
Razia Asif, another female entrepreneur at the market who sells gems, jackets and decorative items, said she used to sell her goods from home until the market launched.
“We opened this shop a month ago,” she said. “We have been given the opportunity by the government to bring our products to market.”
Speaking to Arab News, GDA director Sajid Wali described the market as a “one-stop shop” to buy local handicrafts, gemstones, dried fruits and traditional cuisines at affordable rates while enjoying a beautiful riverside view.
Wali also hoped, he said, that the market would serve both as a bustling tourist spot in the near future while empowering women of the region at the same time.
“We know the women of Gilgit-Baltistan have the skills,” he said.
“However, only a limited number of products prepared by them reach our markets due to lack of opportunities. Their [home-based] businesses don’t run very smoothly all the time. We know these things and have tried to bring these women into a proper retail market.”
Mubareka Gul, an executive member of the Women Chamber of Commerce and Industry in Gilgit division, said women of the area previously found it difficult to market and sell their goods.
“For the first time in history [in Gilgit], women can run these businesses in a friendly environment under tight security,” she said. “This is a family market and families come and visit this place.”
“The women trained by us, who did not have direct market access, have become successful due to the government of Gilgit-Baltistan and the Women Chamber of Commerce,” Gul added. “We hope that this market will become a business hub.”
Gul urged the public to visit the newly inaugurated trade center with family members and explore the products being sold.
“I have visited this market two, three times,” Sultana Karim, a visitor, told Arab News as she bought cushions for her drawing room.
“Each time it is a pleasure to come here because a variety of products are available.”
