In a first, Pakistan allows five entities to establish digital banks

Customers carry shopping bags at a mall in Islamabad, Pakistan, on May 18, 2020. (AFP/File)
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Updated 13 January 2023
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In a first, Pakistan allows five entities to establish digital banks

  • The move aims to promote financial inclusion through affordable digital financial services
  • Digital banks provide people access to banking wherever they are and have a secure Wi-Fi

ISLAMABAD: Pakistan's central bank said on Friday it had allowed five entities to establish digital banks for the first time in its history, hoping the move would promote financial inclusion through affordable digital financial services. 

A digital bank offers all kinds of financial products and services primarily through digital platforms or electronic channels, essentially giving people access to banking wherever they may be and wherever they have secure Wi-Fi and strong cell signal. 

The development comes a year after the State Bank of Pakistan (SBP) introduced a Licensing and Regulatory Framework for Digital Banks in line with international best practices and decided to issue up to five licenses. The move came as part of the SBP initiatives, aimed at introducing new payment solutions in a country with a massive unbanked population. 

In response to the regulatory framework, the SBP said, it received 20 applications from a diverse range of interested players such as commercial banks, microfinance banks, electronic money institutions, fintech firms as well as a number of foreign players, including venture capital firms already operating in the digital banking space. 

"Each of these five (05) applicants will incorporate a public limited company with Securities and Exchange Commission of Pakistan," the central bank said in a statement. 

"Afterwards, they will approach SBP for In-Principle Approval for demonstrating operational readiness and for commencement of operations under the pilot phase. Subsequently, they will commercially launch their operations after obtaining SBP’s approval." 

The five entities, Easy Paisa DB, Hugo Bank, KT Bank, Mashreq Bank and Raqami, were selected after a thorough and rigorous assessment process as per the requirements of the framework, according to the SBP.  

They were assessed on various parameters, including fitness and propriety, experience and financial strength, business plan, implementation plan, funding and capital plan, IT and cybersecurity strategy and outsourcing arrangements.  

"SBP expects that after commencement of their operations, these digital banks will promote financial inclusion by providing affordable/cost effective digital financial services, including credit access to unserved and underserved segments of the society," the central bank said. 


Pakistan GDP grows 2.09% in Q3, supported by agriculture

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Pakistan GDP grows 2.09% in Q3, supported by agriculture

  • Pakistan’s central bank in latest report projected real GDP growth of 2-3% for the fiscal year 2024 
  • Provisional 2024 financial year growth in agriculture estimated at 6.25%, 1.21% for industry and services

ISLAMABAD: Pakistan’s economy grew 2.09% in the third quarter of the financial year 2023-2024, supported by higher growth in agriculture, the Pakistan Bureau of Statistics said in a press release on Tuesday.

The estimated provisional growth rate of gross domestic product (GDP) for the financial year ending June 2024 is 2.38%, the bureau said in a statement. That compares with a revised 0.21% economic contraction in the 2023 year when political unrest, a combination of tax and gas tariff hikes, controlled imports, and a steep fall in the rupee currency rapidly pushed up inflation.

Last week in its half yearly report, Pakistan’s central bank projected real GDP growth of 2-3% for the fiscal year 2024.

There was no comparable year-ago third quarter GDP data as Pakistan only began releasing quarterly growth numbers from November. That was done in compliance with the structural benchmarks of the current $3 billion bailout program agreed with the International Monetary Fund and completed last month.

The bureau revised the first and second quarter GDP estimates for financial year 2023-2024 to 2.71% and 1.79% respectively, compared to earlier estimates of 2.5% and 1%.

The provisional 2024 financial year growth in agriculture was estimated at 6.25%, and 1.21% for both industry as well as services, it added.

“The healthy growth of agriculture is mainly due to double-digit growth in important crops,” the bureau said, adding that bumper crop of wheat, cotton, and rice contributed to the positive result.


'They love their cricket': Rohit Sharma lauds Pakistani fans for praising Indian cricketers

Updated 21 May 2024
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'They love their cricket': Rohit Sharma lauds Pakistani fans for praising Indian cricketers

  • India and Pakistan, bitter political adversaries, enjoy one of sports fiercest rivalries in cricket
  • Indian captain Rohit Sharma bats for Test series with arch-rivals, says Pakistan “overall a good team”

ISLAMABAD: Indian captain Rohit Sharma recently praised Pakistani fans for appreciating Indian cricketers, saying that he would love to play in a Test series between the two arch-rivals if it were ever to take place. 

The South Asian neighbors are bitter political adversaries and have fought three wars against each other since they were partitioned at the end of British colonial rule in 1947. Their tensions mean the two countries rarely play bilateral series against one another and meet only at “neutral venues” during international tournaments. 

Sharma, 37, appeared on ‘Dubai Eye 103.8,’ a Dubai-based talk radio station on Wednesday to discuss the upcoming T20 World Cup 2024 and his journey as India’s skipper so far. During the show, the hosts relayed a message to Sharma from a Pakistani fan. 

“Loved the messages from the Pakistani fans,” Sharma said, smiling. “I know they love their cricket, they love it. Every time, mainly when we are in the UK these guys come and just tell us how, respectfully, how they love us, how they love Indian cricketers and how they love to watch some of us at big stages.”

India and Pakistan are bitter political adversaries and have fought three wars against each other since they were partitioned at the end of British colonial rule in 1947.

Their cricket teams have not faced off in a Test since 2007. Instead, they play only occasionally in the shorter versions of the game. 

When asked whether there were chances of India and Pakistan playing each other in a Test match soon, Sharma said:

“I don’t know the status of it. Personally if you ask me, I’m a cricketer at the end of the day. I want to play cricket and I want to get challenged at whatever stage I play cricket, and I feel Pakistan is a good team.”

Sharma praised Pakistan for having “solid bowlers,” saying that the green shirts are “overall a very good team.” He said cricket fans around the world would love to watch a Test series between the two arch-rivals. 

“I actually have no issues it’s just from a pure cricketing perspective if I have to look at it, it’s going to be a great cricket contest,” he explained. 

India and Pakistan have not faced each other on either side’s soil in a bilateral series since 2012.

India last year refused to travel to Pakistan for the white-ball Asia Cup, prompting part of the tournament to be staged in Sri Lanka. They last met at the 50-over World Cup in India in October.

The two cricket giants will square off on June 9 in New York when the T20 World Cup 2024 gets underway. 


26,711 Pakistani pilgrims reach Saudi Arabia ahead of this year’s Hajj

Updated 21 May 2024
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26,711 Pakistani pilgrims reach Saudi Arabia ahead of this year’s Hajj

  • Around 179,210 Pakistanis will perform Hajj under both government and private schemes 
  • Over 1,000 Pakistani Hajj pilgrims have arrived in Kingdom through private tour operators

ISLAMABAD: A spokesperson for Pakistan’s religion ministry said on Tuesday 26,711 Pakistani pilgrims have arrived in Saudi Arabia ahead of next month’s Hajj, less than two weeks after the country kicked off its pre-Hajj flight operations to the Kingdom. 

This year, around 179,210 Pakistanis will perform Hajj under both the government and private schemes, for which a month-long flight operation started on May 9. This year’s pilgrimage is expected to run from June 14-19.

“Through 109 flights, 26,711 Pakistani Hajj pilgrims have reached Saudi Arabia,” a spokesperson of the Religious Affairs (MoRA) said in a statement. “After an eight-day stay in Madinah, the first convoy of 6,011 Hajj pilgrims has left for Makkah.”

The spokesperson said over 1,000 Hajj pilgrims have arrived in Saudi Arabia through the private scheme, adding that 336 assistants or “Hajj Moavineen” have been deployed to help Pakistani pilgrims, and ensure their pilgrimage remains a hassle-free one. 

He said Pakistan’s Religious Affairs Minister Chaudhry Salik Hussain visited the residences of Pakistani Hajj pilgrims in Makkah recently and also reviewed arrangements for their food and travel in the holy city. 

“Federal Minister for Religious Affairs Chaudhry Salik Hussain is expected to hold an important meeting with his Saudi counterpart today,” the spokesperson said. 

Hajj is one of the five pillars of Islam and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime, provided they are financially and physically able to do so.

Pilgrims from Pakistan’s southern port city of Karachi are availing the Makkah Route Initiative facility for the first time. Launched in 2019, the initiative allows for the completion of immigration procedures at the pilgrims’ country of departure. 

This makes it possible to bypass long immigration and customs checks upon reaching Saudi Arabia, which significantly reduces the waiting time and makes the entry process smoother and faster. 


Pakistan seeks regional connectivity, integration as FM Dar meets SCO counterparts in Kazakhstan

Updated 21 May 2024
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Pakistan seeks regional connectivity, integration as FM Dar meets SCO counterparts in Kazakhstan

  • Ishaq Dar meets foreign ministers of Tajikistan, Kyrgyzstan at sidelines of SCO Foreign Ministers Council meeting
  • SCO member states collectively represent nearly half of world’s population, quarter of global economic output 

ISLAMABAD: Pakistan’s Foreign Minister Ishaq Dar met his counterparts from the Shanghai Cooperation Organization (SCO) this week in Kazakhstan as Islamabad seeks regional connectivity and integration through various projects, the foreign office said.

Dar, who is also Pakistan’s deputy prime minister, arrived in Astana on Monday to attend the two-day meeting of the SCO’s Foreign Ministers Council. Founded in 2001, the SCO is a major trans-regional organization spanning South and Central Asia, with China, Russia, Pakistan, India, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as its permanent members. The SCO member states collectively represent nearly half of the world’s population and a quarter of global economic output. 

Pakistan has aimed to enhance its role as a pivotal trade and transit hub connecting the Central Asian republics with the rest of the world, leveraging its strategic geographical position.

Dar met Tajikistan’s Foreign Minister Sirojiddin Muhriddin on Tuesday at the sidelines of the CFM meeting where they committed to further strengthen bilateral cooperation and high-level dialogue. 

“They underlined the early implementation of CASA-1000 project and other connectivity and regional integration projects for mutual benefit of the two countries and the wider region,” the Ministry of Foreign Affairs (MoFA) said. 

The CASA-1000 project aims to allow Tajikistan and Kyrgyzstan, former Soviet republics with an extensive network of hydroelectric power plants, to sell excess energy to Pakistan and Afghanistan in the summer months.

The development took place a day after Dar met Kyrgyzstan’s Foreign Minister Jeenbek Kulubaev. The two discussed last week’s violent clashes in Bishkek that forced Pakistan to repatriate over 600 students from Kyrgyzstan within days. 

During the meeting, Dar shared the feelings of insecurity and fear among Pakistani students with Kulubaev and requested the foreign minister to ensure their safety and security. He also requested for holding to account those responsible for the attacks on Pakistani students, the foreign office said. 

“Bilateral relations between Pakistan and Kyrgyz Republic especially in the domains of energy, connectivity, trade and people-to-people contacts also came under discussion,” the foreign office said. “And both dignitaries expressed satisfaction at the progress of established bilateral institutional mechanisms.”

Pakistan has recently undertaken measures to enhance bilateral trade and ramped up efforts to attract foreign investment to stave off a chronic balance of payments and macroeconomic crisis. 

Since April, the South Asian country has seen a flurry of high-level engagements. These included visits by the Iranian president, Saudi foreign minister, a delegation of top Saudi companies as well as officials from Qatar, China, Japan and Central Asian countries, among others.

Prime Minister Shehbaz Sharif has vowed to rid Pakistan of its economic crisis by attracting foreign investment, efficiently utilizing its state-owned enterprises and ensuring sustainable development of its priority sectors.


Pakistan’s leading rights body expresses ‘grave concern’ as Punjab passes defamation law

Updated 21 May 2024
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Pakistan’s leading rights body expresses ‘grave concern’ as Punjab passes defamation law

  • Bill proposes special tribunals to decide cases within six months, issue hefty fines to persons for spreading “fake news”
  • Human Rights Commission of Pakistan says bill would serve as a “huge blow to freedom of expression and dissent”

ISLAMABAD: Pakistan’s leading rights body this week expressed “grave concern” over a defamation bill passed by the Punjab Assembly that empowers special tribunals to impose hefty fines on persons found guilty of peddling fake news, saying it would lead to a clampdown on freedom of speech and expression in the country. 

The bill empowers the government to establish a special tribunal to try those involved in drafting, publishing and/or airing “fake news.” The tribunal shall decide the case within six months and may impose a fine of up to Rs3 million ($10,770). However, when cases against individuals who hold constitutional posts are heard, the high court will hear them.

The bill also states that the government will provide legal assistance to women and transgender individuals in defamation cases through a legal team. The bill was tabled by Punjab Finance Minister Mujtaba Shujaur Rehman in the assembly on Monday, ignoring calls from the Pakistan Federal Union of Journalists (PFUJ) and other media bodies to delay voting on it. 

A ruckus ensued in the assembly with opposition lawmakers tearing copies of it and shouting slogans after the house passed it through a voice vote. Journalists present in the press gallery staged a walkout, saying the bill attempts to silence dissent. 

“The Human Rights Commission of Pakistan (HRCP) has expressed grave concern over the draft defamation bill tabled in the Punjab Assembly,” the HRCP said in a statement on Monday. 

The HRCP pointed out that the bill proposes a parallel structure to adjudicate defamation claims, adding that it has always opposed the same on the grounds that such measures “invariably violate fundamental rights and other universally accepted norms governing the fair functioning of the judiciary.”

It also raised alarm over the fact that the bill empowers the government to set up defamation tribunals and appoint judges at higher allowances and benefits than what are available to the existing provincial judiciary functioning at the district level. 

The HRCP said the bill states that defamation claims have to be resolved within 180 days and proposes authorizing tribunals to issue preliminary decrees up to Rs3 million without trial on receiving a defamation claim. 

“This will be a huge blow to freedom of expression and dissent,” the rights body said. “Such orders are likely to be passed without following due process and ensuring fair trials.”

The HRCP highlighted that the bill creates a “special category” of constitutional officeholders such as the prime minister, chief justices and military chiefs, among others. Defamation claims against these members would be heard by a one-member tribunal comprising a judge of the Lahore High Court. 

“This provision violates the principle of equality of citizens and equality before the law,” it said. 

Meanwhile, Punjab Information Minister Azma Bokhari last week defended the bill, saying its main purpose was to stop the spread of lies and defamation. 

“A person who lies under the guise of a journalist with a specific agenda will face the music under this proposed law,” Bokhari told journalists during a news conference on Wednesday. 

Bokhari said some articles peddling fake news which were published in Pakistan could not be published in other countries due to the stringent laws there that hamper such practices. 

“After this law, no one can be blackmailed,” she said. “Freedom of expression can neither be restricted, nor will be allowed to commit wrongdoing.”

Media bodies have often cited Pakistan as one of the most dangerous countries for journalists. The International Federation of Journalists (IFJ) on May 3 released its country report on Pakistan in which it said over 300 journalists and bloggers this year were affected by state coercion. 

The report said dozens of journalists were arrested this year for durations between several hours to four weeks and nearly 60 were served legal notices or summons for their journalism work or personal dissent online.