Checkout.com, NIFT finalizing borderless payment mechanism in six months

The screen grab shows the layout of the website Checkout.com. (Photo courtesy: Checkout.com)
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Updated 25 September 2020
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Checkout.com, NIFT finalizing borderless payment mechanism in six months

  • Financial transactions through PayPal etc. will be directed to merchants’ bank accounts
  • Digital payments are becoming more popular in Pakistan due to government incentives

KARACHI: Information technology experts confirmed on Friday that Pakistani merchants would be able to make cross-border financial transactions in the next six months using major international payments platforms, including PayPal, Apple Pay and Google Pay, via Checkout.com.
PayPal Holdings and other foreign companies providing online payment facilities do not operate in the country, making it difficult for local businesses to adopt simpler ecommerce mechanisms.
“The technology trials between NIFT [National Institutional Facilitation Technologies] and Checkout.com have kicked off,” Badar Khushnood, head of ecommerce committee of the Pakistan Software Houses Association (P@SHA), told Arab News. “Both sides are looking into different aspects of online payments, such as how money will be received and returned or how transactions will be cancelled. All of these things are being worked out.”
Checkout.com is a global payment provider which offers reliable payments in more than 150 different currencies. It also accepts payments from all major international card schemes, including Visa, MasterCard and American Express, along with other popular alternatives and local payment methods.
“Checkout.com brings a unified offering of all the prominent international payment methods and wallets such as PayPal, AliPay, Apple Pay and Google Pay, enabling merchants to pay and run their businesses in Pakistan,” according to a statement issued by the Ministry of Commerce on Thursday.

Khushnood, who leads the private sector in the National E-Commerce Council (NeCC), informed that the technology would be delivered to ecommerce merchants in Pakistan within three to six months.
The progress on the implementation of the payment system project was discussed in the third NeCC meeting which was chaired by the adviser to prime minister on commerce and investment, Abdul Razak Dawood, on Thursday.
“The implementation will enable both organizations to provide payment services through each other’s infrastructure and pursue commercial opportunities as a partnership,” the commerce ministry statement added. “This strives towards a borderless experience for businesses and consumers alike, promoting digital payments and settlements for exports and digital commerce across Pakistan.”
NIFT that partnered with Checkout.com is a joint venture between a consortium of six major banks and entrepreneurs from the private sector. It has been licensed and nominated by the State Bank of Pakistan (SBP) as Payment System Operator (PSO) and Payment System Provider (PSP) to maintain an electronic platform for clearing, processing, routing and switching of electronic transactions.
“PayPal, Apple Pay, and Google Pay do not operate in Pakistan,” Khushnood said, adding the gap would be filled by Checkout.com-enabled technology.
“The merchants will now be able to directly receive payments in their bank accounts as these companies are legally connected to Checkout.com which has permission to operate in countries where our businesses do not exist in a legal sense,” he explained.
Pakistani officials maintain that digitization of payment is becoming more popular in the country since cash payments are getting more expensive in comparison to digital ones.
“The Punjab Revenue Authority has slashed sales tax from 16 percent to five percent on payment through plastic money. Digital payments have increased by 35 percent,” Khushnood informed.


Multi-party summit pushes for talks between Pakistan government, opposition to ease tensions

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Multi-party summit pushes for talks between Pakistan government, opposition to ease tensions

  • National Dialogue Committee group organizes summit attended by prominent lawyers, politicians and journalists in Islamabad
  • Participants urge government to lift alleged ban on political activities, end politically motivated cases and release women prisoners

ISLAMABAD: Participants of a meeting featuring prominent politicians, lawyers and civil society members on Wednesday urged the government to initiate talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, lift alleged bans on political activities and release jailed leaders of the PTI to foster reconciliation and pave the way for economic prosperity.

The summit was organized by the National Dialogue Committee (NDC), a political group formed last month by former PTI members Chaudhry Fawad Husain, ex-Sindh governor Imran Ismail and Mehmood Moulvi. The NDC has called for efforts to ease political tensions in the country and facilitate dialogue between the government and Khan’s party. 

The development takes place amid rising tensions between the PTI and Pakistan’s military and government. Khan, who remains in jail on a slew of charges he says are politically motivated, blames the military and the government for colluding to keep him away from power by rigging the 2024 general election and implicating him in false cases. Both deny his allegations. 

Since Khan was ousted in a parliamentary vote in April 2022, the PTI has complained of a widespread state crackdown, while Khan and his senior party colleagues have been embroiled in dozens of legal cases. Prime Minister Shehbaz Sharif last month reiterated his openness to talks with the PTI.

“The prime objective of the dialogue is that we want to bring the political temperatures down,” Ismail told Arab News after the conference concluded. 

“At the moment, the heat is so much that people— especially in politics— they do not want to sit across the table and discuss the pertaining issues of Pakistan which is blocking the way for investment.”

Former prime minister Shahid Khaqan Abbasi, who heads the Awaam Pakistan political party, attended the summit along with Jamaat-e-Islami senior leader Liaquat Baloch, Muttahida Quami Movement-Pakistan’s Waseem Akhtar and Haroon

Rasheed, president of the Supreme Court Bar Association. Journalists Asma Shirazi and Fahd Husain also attended the meeting. 

Members of the Pakistan Peoples Party, the ruling Pakistan Muslim League-Nawaz (PML-N) and the PTI did not attend the gathering. 

Muhammad Ali Saif, a former adviser to the Khyber Pakhtunkhwa chief minister, told participants of the meeting that Pakistan was currently in a “dysfunctional state” due to extreme political polarization.

“The tension between the PTI and the institutions, particularly the army, at the moment is the most fundamental, the most prominent and the most crucial issue,” Saif noted. 

‘CHANGED FACES’

The summit issued a joint communiqué after the meeting, proposing six specific confidence-building measures. These included lifting an alleged ban on political activities and the appointment of the leaders of opposition in Pakistan’s Senate and National Assembly. 

It also called for the immediate release of women political prisoners, such as Khan’s wife Bushra Bibi and PTI leader Yasmin Rashid, and the withdrawal of cases against supporters of political parties.

The communiqué also called for an end to media censorship and proposed that the government and opposition should “neither use the Pakistan Armed Forces for their politics nor engage in negative propaganda against them.”

Amir Khan, an overseas Pakistani businessperson, complained that frequent political changes in the country had undermined investors’ confidence.

“I came here with investment ideas, I came to know that faces have changed after a year,” Amir Khan said, referring to the frequent change in government personnel. 

The NDC plans to consult senior opposition leaders currently in prison to finalize a representative committee for talks once the government announces its own team.

“Let us create some environment. Let us bring some temperatures down and then we will do it,” Ismail said regarding a potential meeting with the jailed Khan. 

Khan’s party, on the other hand, has been calling for a “meaningful” political dialogue with the government. 

However, it has accused the government of denying PTI members meetings with Khan in the Rawalpindi prison where he remains incarcerated. 

“For dialogue to be meaningful, it is essential that these authorized representatives are allowed regular and unhindered access to Imran Khan so that any engagement accurately reflects his views and PTI’s collective position,” PTI leader Azhar Leghari told Arab News last week.