KARACHI: PayPal, the American company that operates a global online payment system has refused to extend its services to Pakistan for at least three years, citing a lack of adequate business opportunities, local media reported on Saturday.
As of this year, PayPal operates in 202 markets and has over 286 million active, registered accounts. The company allows customers to send, receive and hold money in multiple currencies.
Last month, a Pakistani delegation from the Ministry of Information Technology traveled to the US to convince PayPal to begin operations in Pakistan. But PayPal officials refused, and said Pakistan was not included in the company’s three-year road map due to inadequate business opportunities, Urdu News reported.
The Elon Musk-founded company, has also previously refused to begin operations in Pakistan, despite the country trying to secure facilitation for its 200,000 freelancers and over 7,000 registered small and medium enterprises (SME’s) in recent years.
The global online payment industry is pegged to grow ten-fold to $500 billion by 2020. Meanwhile, Pakistan expects an expansion of its electronic payments, which represent a potential market of $36 billion by 2025, as the country migrates from a cash based economy to an electronic payment system.
But IT experts believe that PayPal’s refusal to operate in Pakistan is not related to the lack of business opportunities in the country, but to its grey-listing by the Paris-based terror financing watchdog, Financial Action Task Force (FATF).
“Huge business opportunities do exist in Pakistan. I think this is the issue of FATF and not volumes, because PayPal operates even in much smaller countries as compared to Pakistan,” Hamza Matin, an IT expert and former President of Pakistan Software Houses Association (P@SHA), told Arab News.
“PayPal operates with banks and unless the confidence in the banking system is restored, they will not come to Pakistan. They fear money laundering,” he said.
FATF has given Pakistan until February 2020 to implement an action plan to get off its grey list or risk further downgrading to the blacklist which will have severe consequences for the country’s financial and banking system.
In February this year, Asad Umar, then finance minister, said the government was committed to bringing Paypal to Pakistan, and said: “We are chasing PayPal for the breakthrough.”
PayPal not yet ready to extend services to Pakistan
PayPal not yet ready to extend services to Pakistan
- The online payment company has cited a lack of business opportunities behind its decision
- IT experts in Pakistan believe PayPal is concerned about Pakistan’s grey-listing by the Financial Action Task Force
Police lodge case in prominent Pakistani businessman’s ‘kidnapping’ in Karachi after court intervention
- Zulfiqar Ahmed, owner of Paracha Textile Mills and Mezan Group, was abducted from Karachi’s Mauripur area
- Official says high-powered police teams formed to investigate the matter, hoping that it will be resolved soon
KARACHI: Police have registered a case into the “kidnapping” of a prominent Pakistani businessman in Karachi on the intervention of a high court, his lawyer said on Saturday, three days after the incident.
Zulfiqar Ahmed, managing director of Paracha Textile Mills and Mezan Group, was kidnapped from Mauripur Road on July 23 after he left his office in Sher Shah area, according to the police report. A white Toyota Surf vehicle intercepted their car and eight armed men forced Ahmed and his friend, Qaiser, into it before dropping Ahmed’s friend off a short distance away.
Ahmed’s friend informed about the kidnapping his family and the company, which submitted an application in the Kalri police station on the same day. When the police refused to register a complaint, the family requested the Sindh High Court (SHC) to intervene in the matter. Mian Ali Ashfaq, the counsel representing Ahmed and his family, said police registered a case after the court orders.
“The news [of Ahmed’s abduction] somehow gained traction on social media,” Ashfaq told Arab News on Saturday. “After social media spotlight about court order and my protest, my team of office associates went to the police station, where, after four hours, the FIR [First Information Report] was finally registered and a copy was provided to us by Friday afternoon.”
Pakistanis widely shared news about Ahmed’s abduction across social media platforms, calling on authorities to take steps for the release of the businessman, who is also widely regarded for his charity work.
Asad Raza, deputy inspector-general (DIG) of Karachi’s South district where the incident occurred, dismissed the allegations of police inaction in the case and said they had been working on it since it was first reported to them.
“It is insubstantial whether the FIR is registered instantly or after one day’s delay as long as we were working on the case when the abduction took place,” he told Arab News.
Ashfaq, counsel of the Ahmed family, said the SHC had issued notices to respondents and fixed the matter for a hearing on Tuesday. “We hope that Zulfiqar Ahmed will be recovered and reunited with the family before the next hearing,” he added.
On Friday, Karachi Police Chief Javed Alam Odho said two high-powered teams were investigating the case.
“A high-powered team, under the supervision of the DIG of the CIA [Crime Investigation Agency of police] and another under the DIG of the area, are working on it,” Odho told Arab News. “I am confident this case will be resolved soon.”
Authorities warn of floods, landslides as monsoon currents likely to penetrate parts of Pakistan
- This year, Pakistan recorded its ‘wettest April since 1961,’ with 59.3mm rainfall and 144 deaths in thunderstorms, house collapses
- A top UN official last month warned that an estimated 200,000 people in Pakistan could be affected by the upcoming monsoon season
ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Saturday warned of flash floods and landslides as monsoon currents were likely to penetrate upper parts of the country over the next five days.
The monsoon currents from Arabian Sea may cause heavy rains from July 27 till July 31. Under the influence of this system, rainfall could trigger landslides, mudslides and cause boulders to fall, potentially disrupting roads, according to the NDMA.
The areas that are likely to be affected include upper parts of the Khyber Pakhtunkhwa province, Galiyat, Murree, Gilgit-Baltistan and Azad Kashmir. The rainfall can trigger hill torrents in Sulaiman and Kirthar mountain ranges as well as in DG Khan and Rajanpur regions.
“Flash floods can strike suddenly, catching people off guard,” the NDMA said in a statement. “Population at risk is advised to avoid flood waters and find a safe location away from flood-prone areas.”
The authority said it had issued instructions to all relevant departments to take necessary precautions to mitigate the possible effects of flooding and extreme weather.
“Even a mere six inches of moving water can knock you off your feet, and just one foot of moving water can sweep away a vehicle,” the NDMA noted in its advisory for the masses.
“Bridges can be hazardous during floods. Avoid crossing them if water is flowing rapidly. Avoid staying in weak structures. In case of intense rain, seek shelter in safe places such as schools, government buildings, or any concrete buildings.”
Pakistan is recognized as one of the most vulnerable countries to climate change effects in the world. This year, the South Asian country recorded its “wettest April since 1961,” with 59.3 millimeters rainfall and at least 144 deaths in thunderstorms and house collapses, mostly in Khyber Pakhtunkhwa, according to the authorities.
Last month, a UN official warned that an estimated 200,000 people in Pakistan could be affected by the upcoming monsoon season, which is expected to bring heavier rains than usual.
The United Nations, with help from local authorities, has prepared a contingency plan, with $40 million set aside to respond to any emergencies, said Mohamed Yahya, the newly appointed Resident Coordinator and Humanitarian Coordinator in Pakistan.
Unusually heavy rains in June 2022 triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
Pakistani religious party vows to continue sit-in in Rawalpindi despite government’s offer for talks
Pakistani religious party vows to continue sit-in in Rawalpindi despite government’s offer for talks
- Jamaat-e-Islami supporters have been holding a sit-in at a key intersection in Rawalpindi since Friday
- The party wants the government to address cost-of-living crisis, remove additional taxes in the budget
ISLAMABAD: Jamat-e-Islami (JI), a Pakistani religio-political party, on Saturday vowed to continue its sit-in in Rawalpindi against the rising cost of living and additional taxes imposed in the latest budget, despite the government forming a negotiation committee for talks with the protesters.
The JI, led by Hafiz Naeem-ur-Rehman, announced the sit-in in Islamabad to call for a reduction in power tariff amid soaring inflation and to review Pakistan’s agreements with independent power producers (IPPs).
The party’s caravans entered the capital from different directions as the district administration closed the capital’s Red Zone, which houses top government offices and the diplomatic enclave, with shipping containers and roads leading to parliament.
“Our dharna will continue as long as the government accepts our demands for a significant reduction in inflation and electricity prices,” Aamir Baloch, a JI spokesperson, told Arab News.
“The party chief Hafiz Naeem-ur-Rehman will be announcing a fresh strategy for the protests, dharna and engagement with the government today afternoon.”
The government has formed a three-member committee, which includes Information Minister Attaullah Tarar and two senior members of the ruling Pakistan Muslim League-Nawaz (PML-N) party, to hold talks with the JI leadership.
“We are ready for negotiations, but don’t disrupt public life,” Tarar said at a news conference on Friday. “The government’s three-member committee will talk to you. Amir Muqam, Tariq Fazal Chaudhry and I will negotiate with you. Whenever you express willingness, we are ready for the negotiations.”
But Baloch said the party would continue its protest and JI chief Rehman would join the sit-in at Zero Point — a major intersection in the city where various key roads and highways connect with each other — on Saturday.
He said thousands of JI workers had already reached the area, despite the government’s “brutalities.”
“The police have arrested dozens of our peaceful workers from D-Chowk,” he said, referring to a key spot close to the parliament building in Islamabad.
“The government wants to incite the peaceful protesters through such strong-arm tactics. It will be responsible for any law-and-order situation, if our workers are not released immediately.”
Police in the capital have deployed additional contingents, including personnel with riot gears, to prevent any untoward incident.
The Rawalpindi-Islamabad Expressway has also been closed with shipping containers near the Zero Point bridge, where the JI protesters have gathered.
Baloch said the party leadership would announce their future course of action after reaching Zero Point.
“One thing is for sure,” he said. “We are here to stay and will definitely stage a sit-in to press the government to meet our legitimate demands regarding inflation and taxes.”
Protesters in northwest Pakistan end weeklong sit-in after CM assures no military operation being launched
- Pakistan’s government last month announced a new campaign to counter a fresh surge in militancy in areas along the border with Afghanistan
- The announcement raised fears among locals as past operations displaced hundreds of thousands of people and destroyed livelihoods in region
PESHAWAR: Thousands of protesters, who had been staging a sit-in in Pakistan’s Bannu district for a week, on Friday called off their protest after Chief Minister Ali Amin Gandapur assured them that no military operation was being launched in the northwestern Khyber Pakhtunkhwa (KP) province.
Pakistan’s government last month announced a new campaign to counter a fresh surge in militancy in areas along the border with Afghanistan. Major opposition parties opposed the operation and in Bannu — where eight soldiers were killed in a suicide bombing last week — thousands held rallies to call for peace and security.
One of the key demands of the protesters in Bannu was for the government to not launch any new military operation in the province. They demanded that a spike in militant attacks in the region be tackled by empowering and better equipping civilian agencies like the police and the counter-terrorism department (CTD).
On Friday, CM Gandapur traveled to Bannu where he spoke to the protesters and announced at a rally that all their demands had been accepted in letter and spirit, lauding local elders for helping avert violence when two protesters were killed after gunfire triggered a stampede at the rally on June 19.
“I have a signed copy [of the demands]. It has been done the way you [protesters] wanted,” he told the gathering. “I’m the owner of this soil and land, no one can oppress me or coerce me. As chief minister, I declare that there will be no operation in the province.”
The announcement came a day after the provincial apex committee, which comprises civilian leaders and military commanders in the province, met to discuss the situation in Bannu. The KP government later clarified that police and the CTD would be tasked to take action against militants amid a surge in violence in the area.
The resentment for military operation stems from past displacement of hundreds of thousands of people and destruction of countless homes and businesses in successive military campaigns in KP that began in 2014. But Pakistani military spokesman Lt Gen Ahmed Sharif Chaudhry dispelled the fears this week, saying the newly proposed Azm-e-Istehkam campaign was not meant to be a full-scale military operation.
“We have offered sacrifices for our homeland and stood loyal to the country and its people. We left our homes and became nomads for our land and for the sake of peace,” Gandapur said. “We will offer sacrifices again but we will make the decisions ourselves and will not allow anyone to impose their decisions.”
The chief minister appreciated police for taking swift action against illegal armed groups in Bannu.
Provincial Minister for Public Health Engineering Pakhtunyar Khan, who hails from Bannu, said the people of the region had experienced “unspeakable hardships” for the sake of peace.
“We want peace for the entire province and we will not back down from this demand,” Khan said at the rally.
On Thursday, the apex committee said the judiciary would be requested to hold an inquiry into the Bannu shooting incident, a demand that had been put forward by protesters and Pakistan’s opposition alliance.
“Meanwhile, the government will hold its own inquiry and identify the persons responsible,” it said in a statement.
Pakistan plans to launch panda bonds, seeks cooperation of Chinese capital market investors
- The bonds are denominated in China’s currency and will provide Pakistan access to Chinese capital markets
- The finance minister also discusses the next CPEC stage, expected to emphasize business-to-business ties
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb briefed Governor of People’s Bank of China (PBoC) Pan Gongsheng on Pakistan’s plan to launch panda bonds during a meeting in Beijing on Friday in which they discussed a wide range of economic issues.
Panda bonds are sold in China’s domestic market and are denominated in its currency, though they are issued by non-Chinese entities. Pakistan plans to issue these bonds to diversify its funding sources and strengthen its foreign exchange reserves by attracting Chinese investors.
According to local media reports, the initial issuance is expected to raise between $250 million and $300 million, helping Pakistan improve its financial stability amid economic challenges like high inflation and declining forex reserves.
The minister spoke about the government’s economic policy during the meeting in which reprentatives of other financial institutions were also present.
“Underlining Pakistan’s plan to launch panda bonds, Minister for Finance briefed PBoC and other Financial Institutions about the steps taken so far and sought cooperation of the Chinese institutional investors in the capital market to seek benefit from the pro-business policies of the new [Pakistani] Government,” said a statement issued by the finance division after the meeting.
The Pakistani official also highlighted his country’s improving macroeconomic indicators, reforms in tax collection and energy sector and privatization of loss-making state-owned enterprises.
He applauded Chinese President Xi Jinping’s Belt and Road Initiative while reviewing the progress of its flagship China-Pakistan Economic Corridor (CPEC) project.
The minister noted the next phase of CPEC would focus on strengthening business-to-business cooperation, with private sector playing the central role in the development and economic growth.
He arrived in China on Thursday to open talks on power sector structural reforms suggested by the International Monetary Fund, two government sources quoted by Reuters.
Aurangzeb is also accompanied by Pakistan’s Power Minster Awais Ahmed Khan Leghari.
According to Reuters, both officials are expected to take up several proposals with the Chinese side, including reprofiling of nearly $15 billion energy sector debt.
