Pakistani Shariah-compliant buy-now-pay-later startup makes waves globally

The photo posted on May 19, 2023, shows the co founders of Pakistani start-up KalPay. (Photo courtesy: KalPay/Facebook)
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Updated 06 June 2023
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Pakistani Shariah-compliant buy-now-pay-later startup makes waves globally

  • Shershah Hassan, Waleed Amjad Islam KalPay featured on Forbes “30 under 30 Asia” list this year
  • KalPay allows customers to buy products and pay in three equal installments without interest

KARACHI: It was in 2020 that school and university friends Shershah Hassan and Waleed Amjad Islam began brainstorming a business idea that would help change people’s lives.

Hassan, 26, and Islam, 25, came up with Kalpay, a Shariah-compliant buy-now-pay-later (BNPL) startup that is making waves globally and was featured on this year’s prestigious Forbes “30 under 30 Asia” list.

Launched in June 2021, KalPay is already working with around 500 e-commerce merchants across multiple product and service categories, allowing customers to buy products and pay in three equal monthly installments using cards, e-wallets and bank transfers without any interest or extra charges.

Credit card penetration is less than 1 percent in Pakistan and almost 90 percent of transactions are done by cash. Pakistan has the third largest unbanked adult population globally, with about 100 million adults without a bank account in a population of 220 people, according to the World Bank.
 
“The idea was generated back in 2020, we thought about a product that could help ease financing problems and offer solutions to basic banking problems,” Hassan, who is the CEO and cofounder of KalPay, told Arab News in an interview on Monday.

“The drive was that I have to do my own business and the goal was that the work should be impact focused to improve the lives of consumers by giving them access to finance,” he said. “That dream is being fulfilled.”

After bootstrapping for around 9 months, Hassan raised investment in June 2021 and then left his job at a US company. In October of that year, he launched the startup along with his friend Islam. The funding came from local and foreign investors, including venture capital firms and angel investors from Saudi Arabia, Europe, Singapore and the United States.

“Currently KalPay is working on three verticals and providing BNPL ecommerce-based solutions through working with 500 companies and giving users access to easy financing,” Hassan, who is an Accounting and Finance graduate from the Lahore University of Management Sciences (LUMS), said.

The KalPay chief said his firm offered financing between Rs2,000 to Rs500,000, that could be paid back in three installments. Two of its new verticals are KalPay Rasayi and KalPay Taleem, offering BNPL services on the purchase of productive assets like smartphones and laptops and fee payments for education and skill development services. 

“If we are financing a laptop or a smartphone to a freelancer or Foodpanda rider, the laptop and smartphone are the source of income to them,” Hassan explained. “That is how we are creating impact in society because these products could change the lives and future of people.” 

The startup’s growth in terms of value and volume is in double digits on a month-on-month basis, and Hassan said he and his partner were planning further growth and consolidation.

Responding to a question about the rationale behind launching a Shariah-compliant product, Hassan said his research had revealed that a majority of people in Pakistan didn’t want to engage in interest-based financing.

“Obviously our [Pakistani] market is Muslim majority, so while searching from a financing perspective, one thing came into the spotlight that some customers don’t get financing because of religious concerns and I also wanted to have Shariah-compliant products,” Hassan said, adding that the service was not only for Muslims.

Talking about the challenges of the business, especially amid record inflation in Pakistan, Hassan said:

“The cost of capital and cost of financing has substantially gone up [in Pakistan]. Of course, it is a tough market to operate and the risk remains that if you are giving a loan to someone today and after six months he won’t be able to pay back.” 

The CEO admitted that some people defaulted but said the ratio remained in the single digit. 

Commenting on the cofounders’ inclusion in the Forbes list, Hassan said it came as a surprise.

“It was a sort of surprise for me because they don’t disclose before publication,” he said. “It is an honor for me, my team and of course, for Pakistan.”


Pakistan reaffirms stance against forging diplomatic ties with Israel, cites Palestinian well-being

Updated 24 September 2023
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Pakistan reaffirms stance against forging diplomatic ties with Israel, cites Palestinian well-being

  • The country’s interim information minister calls it the discretion of other Muslim states how they view relations with Israel
  • Murtaza Solangi says Pakistan respects all countries and their policies but can’t be forced by them to change its position

ISLAMABAD: Caretaker Information Minister Murtaza Solangi on Sunday reaffirmed Pakistan’s unchanged stance of not establishing diplomatic relations with Israel, citing the well-being of the Palestinian people as the primary reason in an interview.
Solangi’s comments came hours after Geo News reported that Pakistan’s interim foreign minister Jalil Abbas Jilani had said any decision to establish bilateral relations with Israel would hinge on the nation’s own interests and the well-being of the Palestinian people.
Jilani’s remarks were said to be in response to claims by his Israeli counterpart, Eli Cohen, who indicated he had met with leaders of several Islamic nations in recent days who were likely to forge diplomatic ties with Israel soon.
However, the Pakistani foreign minister clarified there had been no recent meetings between his country’s officials with Israeli authorities.
“Some Muslim countries in the world have long maintained diplomatic relations with Israel,” Solangi told GTV News. “But we don’t have such ties for the last 75 or 76 years. Pakistan has taken a traditional and principled stand [over the issue], and the state and its institutions stand by it.”
“Pakistan’s position on Israel is related to the future of the people of Palestine,” he continued. “As long as Palestinians do not get their free country and their right to self-determination, which is recognized in the United Nations resolutions, Pakistan will not abandon its Palestinian brothers.”
The information minister said how other Muslim countries viewed their relations with Israel was their discretion.
“We respect all countries and their policies,” he said. “But we cannot be forced by any country to alter our position as well.”

 

 

Prime Minister Anwaar-ul-Haq Kakar also advocated for a two-state solution as a path to enduring peace in Palestine during his United Nations General Assembly speech on Friday.
He reiterated Pakistan’s position on the matter, calling for the “establishment of a viable and contiguous Palestinian state within the pre-June 1967 borders with Al-Quds as its capital.”
Kakar also criticized Israeli military raids against Palestinians and its expansion of settlements in the Occupied Territories.
However, Geo News quoted an unnamed Pakistani diplomat in its report as saying he hoped that his country “would not have to make a decision on this matter [of normalizing relations with Israel] in the near future.”


Pakistan’s interim government advocates inclusive elections, calls for impartial state media coverage

Updated 24 September 2023
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Pakistan’s interim government advocates inclusive elections, calls for impartial state media coverage

  • Murtaza Solangi says it is the responsibility of the caretaker government to create the right environment for transparent polls
  • PM Kakar told international media on Friday it was possible to hold fair elections without ex-PM Khan who was facing legal action

ISLAMABAD: Pakistan’s interim information minister Murtaza Solangi stressed the importance of unfettered political participation in the upcoming national elections on Sunday, saying the state media must remain impartial during the political contest.
Solangi’s issued the statement at a time when supporters of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party have tried to highlight attempts to eliminate their top leader from the political landscape of the country.
Khan has been facing a number of cases since his ouster from power in a parliamentary no-trust vote in April of last year and remains incarcerated in a high-security prison on charges of corruption and violating the Official Secrets Act.
Addressing a ceremony at Radio Pakistan Karachi, Solangi said it was clearly written in the constitution that the country would be run by democratically elected leaders.
“The state media should not support or oppose any political party,” he was quoted as saying by the Associated Press of Pakistan news agency.
He said it was the responsibility of the caretaker government to provide the right environment for transparent polls. He instructed the country’s official media to provide fair coverage to all registered political parties in the country.
It may be recalled that Prime Minister Anwaar-ul-Haq Kakar said in an interview with The Associated Press on Friday it was “absolutely absurd” to say Pakistan’s powerful military would want to manipulate the election results keep ex-PM Khan from winning.
However, he also maintained in the same conversation it was possible to hold fair elections without the former premier and his jailed party leaders since they were involved in violent protests on May 9 and were facing legal action as a consequence.


Fathers of Noor Mukadam, Sara Inam call for expedited justice in daughters’ murder cases

Updated 24 September 2023
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Fathers of Noor Mukadam, Sara Inam call for expedited justice in daughters’ murder cases

  • The demand for quicker trials by fathers of the two high-profile murder victims highlights a stagnant justice system
  • The murders of Mukadam and Inam led to public outrage, calling into question the safety and rights of women in Pakistan

ISLAMABAD: The fathers of Noor Mukadam and Sara Inam, victims of two high-profile murders in Pakistan, held a news conference in the federal capital on Sunday, calling for expedited legal proceedings speedy justice in their daughters’ cases.
The media interaction was arranged exactly a year after Inam, a 37-year-old economist, was killed by her husband, Shahnawaz Amir, in suburban Islamabad.
The fathers of the two women not only pressed the judiciary for timely justice but also reignited the focus on the safety and rights of women in Pakistan which came under question after the two murders.
“It has been a year,” lamented Engineer Inam Rahim, Sara's father. “We were hoping this would take about six months since these were open-and-shut cases.”
He also asked the media not to forget about the murders and discuss them in newspapers and on television channels.
“We request you to continue to highlight these cases since that will raise our hopes of getting justice,” he continued, adding that his daughter was trapped by a husband whose main goal was her wealth and who eventually subjected her to brutal murder.
Shaukat Ali Mukadam, the father of Noor Mukadam who was murdered in July 2021, also called for a speedy trial.
“The courts will lose their credibility if such cases continue to remain pending in them,” he said.
His statement came as Zahir Jaffer, who was sentenced to death in his daughter’s murder case, filed an appeal with the Supreme Court of Pakistan in April 2023. The case has remained pending since then.


Pakistan recalls injectable medicine amid eye infection reports, initiates probe

Updated 24 September 2023
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Pakistan recalls injectable medicine amid eye infection reports, initiates probe

  • The interim health minister assures the public of transparent inquiry, vows to prosecute those responsible
  • The government had received complaints related to loss of sight among diabetic patients using Avastin in Punjab

ISLAMABAD: Pakistan’s interim health minister Nadeem Jan said on Sunday the government had recalled an injectable medicine from the market after receiving reports it had caused eye infections and loss of sight among patients in the Kasur, Multan, Lahore, and Sadiqabad districts located in the eastern Punjab province.
According to media reports, the caretaker administration in Punjab formed a five-member committee to investigate the issue, following complaints related to a locally manufactured injection called Avastin which was used by diabetic patients in the province.
The federal health minister invited his provincial counterpart to Islamabad to discuss the issue in the wake of this development. He said authorities had launched an investigation and would soon assign responsibility for the matter.
“Investigations are ongoing,” Jan said in a televised statement. “A committee has been formed, comprising five of our most senior experts, who will analyze the issue from all angles and provide us with a comprehensive report within the next three days.”
“As of now, the batch of medicine in question has been recalled,” he continued. “It is now in our possession, and its sales are prohibited.”
The minister explained the investigation team was tasked with determining whether the problem was caused by the medicine itself, issues in its supply chain, the skill level of the administering doctors, or the sterilization process.
He added the government had filed a police report against two individuals representing the supply company and had initiated legal action against them.
Jan assured the public of a transparent inquiry, adding the authorities would share their findings and prosecute those responsible for causing harm to patients.


Asian Games: Sri Lanka beat Pakistan to set up India cricket final

Updated 24 September 2023
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Asian Games: Sri Lanka beat Pakistan to set up India cricket final

  • Pakistan manage below-par 75-9 in 20 overs against Sri Lanka 
  • Pakistan and Bangladesh will face off for bronze on Monday

HANGZHOU, China: In-form Sri Lanka, fresh from a stunning Twenty20 series victory in England, beat Pakistan by six wickets on Sunday to reach the women’s cricket final at the Asian Games and set up a clash with India.
Pakistan never got going on a difficult batting surface affected by days of rain at the Zhejiang University of Technology ground in Hangzhou, and could only muster a below-par 75-9 in their 20 overs.
Left-arm medium pace bowler Udeshika Prabodhani led the Sri Lankan attack with three wickets and Kavisha Dilhari took two with her offspin.
Sri Lanka sauntered to their target with 21 balls to spare to spark wild celebrations as their players ran on to the field to high-five and hug each other.
Earlier, the Indians routed Bangladesh for 51 on the same ground with all-rounder Pooja Vastrakar, only drafted into the squad as a last-minute replacement, taking four wickets.
They wasted no time in racing to an eight-wicket victory with more than 11 overs remaining as Jemimah Rodrigues top-scored with an unbeaten 20.
Rodrigues is yet to be dismissed in the Asian Games, scoring 47 not out in the quarter-final against Malaysia, which was later abandoned because of rain.
It was the second time in just over a week that Sri Lankan cricketers had proven party-poopers by preventing a Pakistan-India major cricket final.
The country’s men’s team beat Pakistan in the semifinal of the 50-over Asia Cup in Colombo to prevent a final showdown against their fierce rivals India.
Earlier this month, Sri Lanka’s women secured a historic first-ever white-ball series triumph over England, winning 2-1.
Pakistan and Bangladesh will face off for bronze on Monday before India take on Sri Lanka in the gold-medal match.