Pakistani supply chain fintech aims to carve out beachhead in Saudi Arabia within 12 months

In this file photo, taken on October 5, 2022, Pakistani supply chain fintech firm Haball CEO Omer Bin Ahsan speaks at the Cashless Supply Chain 2022 event in Karachi. (Facebook/@haballofficial)
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Updated 18 April 2025
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Pakistani supply chain fintech aims to carve out beachhead in Saudi Arabia within 12 months

  • Haball has disbursed about $140 million in Islamic financing and processed over $3 billion in payments for major multinational corporations
  • Company is now targeting Gulf markets like Saudi Arabia, Iraq, Turkiye and Egypt for the expansion of its invoicing and payments business

KARACHI: Pakistani supply chain fintech firm Haball will raise funds to expand its business into Saudi Arabia and set up a beachhead operation within the next 12 months, its chief executive officer Omer Bin Ahsan said in an interview this week. 

Haball announced this month it had raised $52 million to expand its Shariah-compliant supply chain financing and payments services. The funding, led by Zayn VC and Meezan Bank, includes $5 million in equity and $47 million in strategic financing, and will support Haball’s growth plans for Pakistan and expansion into the Middle East, starting with Saudi Arabia this year.

Haball says it provides Shariah-compliant financing to nearly 8,000 small and medium-sized enterprises (SMEs) as well as up to 70 multinationals, in addition to digital invoicing, payment collection and tax compliance services. The company has processed over $3 billion in payments and disbursed more than $140 million in financing.

Habal is now eying “complex large economies” like Saudi Arabia, Iraq, Turkiye and Egypt to expand its digital supply chain invoicing, payments and financing business as Pakistan’s economy stabilizes, with interest rates halving to 12 percent since June and the pace of inflation ebbing last month to a record low of 0.7 percent.

“In the next twelve months, we intend to set up a beachhead operation in Saudi because Saudi is also very nascent in terms of supply chain financing,” Ahsan, who has already made several trips to the Kingdom to secure necessary regulatory permissions, told Arab News in a wide-ranging interview. 

A beachhead refers to a strategic approach where a company initially focuses on a small, specific market segment, the beachhead, to establish a strong foothold before expanding to broader markets.

Having a beachhead operation would enable Haball to understand the market dynamics and the credit culture in Saudi Arabia and allow it to anchor with strong partner banks, large corporations and wholesale distributors who would be the beneficiaries of the platform, Ahsan said.

“Using that commercial operation at a pilot level, then we will be able to scale into a wider play, SMEs financing, business-to-business payments, and obviously the ultimate goal of any large fintech is that, when they are into invoice payments or digital payments or financing, to see how we can get into the investment and treasury function of SME banking,” the CEO added. 

To expand into Saudi Arabia, Ahsan said the company would have to raise an amount that fit into the costing dynamics and expense outlay of the Kingdom. Haball would also be deploying its technology and the lower-production-cost regime it had built over years in Pakistan to support its operations in Saudi Arabia instead of raising huge amounts of funds.

“The funding requirement would have to be very prudent and would have to be staged in different phases as opposed to raising a large round and making an unnecessary splash that in most cases goes against you,” Ahsan said, declining to disclose the size of the funding as it could impede investor conversations. 

Speaking about reasons for wanting to enter Saudi Arabia, the Haball CEO said it was a mature market in terms of credit culture, but SME and supply chain financing still remained “underserved.” 

“Looking at Saudi Arabia’s GDP and the non-oil component of the GDP [approximately 52 percent] and then trimming it down to the supply chains that serve the large manufacturer, retail, wholesale, all of that, it’s of a significant size … perhaps parallel or comparable to the size of the total economy of Pakistan. So that’s a very good opportunity for a company such as ours to enter that space.”

Ahsan said the company was also eyeing the Saudi market as it was “Shariah-first.”

“And that product that we’ve built for supply chain financing is indigenously Islamic with multiple Islamic variants.” 
The company was in general eyeing “complex economies” with large populations and wide geography for a large distribution operation “because that’s where digital supply chain financing is very meaningful.”

“So countries like Saudi Arabia, countries like Turkiye, countries like Iraq, countries like Egypt, they’re important for us as jurisdictions where this product can have a meaningful impact.”

The game plan was to enter into Gulf markets where the prevailing Islamic finance ecosystem and private debt market was mainly led by big banks.

“The agility of deploying supply chain financing is where the fintechs come in. Our disbursement times are three seconds, not three days,” he said, terming it a “big advantage” for Haball which would aim for 100 percent digitization into the integrated supply chains of Gulf markets to ensure rapid deployment of Islamic finance.

“Rapid deployment is the differentiator between us and any traditional institution,” said the CEO.

“CONTINUITY OF POLICY”

Supply chain finance in Pakistan is nascent but is expected to be worth over $9 billion, driven by the severe financing gap faced by the country’s SMEs, less than 5 percent of which can access financing from commercial banks.

Habal, which means jugular vein in Arabic, is trying to fill this gap, integrating some of the largest supply chains in Pakistan and working with around 70 of the biggest corporations like Coca-Cola, Standard Chartered Bank, Dawlance, Meezan Bank, SereneAir, Colgate Palmolive and National Foods.

“We’re hoping that we will be now quadrupling these numbers in the first few years to come,” said Ahsan, referring to the over $3 billion in payments Haball has processed and more than $140 million in financing it has disbursed to date. 

Haball has not tapped even two percent of Pakistan’s supply chain financing potential that ranges from $10 billion to $25 billion, according to reports from the Asian Development Bank and International Finance Corporation. 

Lamenting that businesses were still making their payments through cash or open cheques, Ahsan said supply chain financing was a “highly underserved space” in Pakistan which was lagging far behind regional peers.

“The outstanding SME financing portfolio in the country is close to $550 billion rupees and State Bank intends to double this in the next three years along with bringing about 200,000 new bank borrowers,” said the chief executive, adding that the deployment of SME supply chain financing was very rapid and could help Pakistan improve its SME financing numbers.

According to Ahsan, at the close of the current fiscal year, Haball aimed to bring its financial portfolio to about $80 million worth of lines available for strategic financing of the supply chains it served.

“In the next five years, this number can easily cross a billion dollars,” said Ahsan, whose short-term goal is to start operating in Saudi Arabia while chasing the ultimate goal of getting into the functions of an SME bank.

On the challenges the company faced, the Haball CEO said the biggest was the “continuity of policy.”

“Policy changes are so frequent, and the macro environment changes so dramatically that it’s very hard for businesses to reorient themselves and stay agile and stay afloat,” he said. 

“I can clearly see that a lot of companies within the fintech space or within the tech startup space struggle with economic uncertainties and the downturns and with macroeconomic stability. That is the biggest challenge of the country.”


’Great moment’: Pakistan observes ‘Day of Gratitude’ to honor nation’s response to Indian strikes

Updated 7 sec ago
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’Great moment’: Pakistan observes ‘Day of Gratitude’ to honor nation’s response to Indian strikes

  • India struck several Pakistani cities with missiles on May 7 amid heightened tensions over an attack in Indian-administered Kashmir last month
  • Pakistan said it downed six Indian fighter jets, including three French-made Rafales, in response, a claim India has not yet officially confirmed

ISLAMABAD: Pakistanis are observing a ‘Day of Gratitude’ today, Friday, to honor a response by armed forces and the public to this month’s Indian strikes against Pakistan, with President Asif Ali Zardari describing it as “great moment.”

India struck several Pakistani cities with missiles on May 7 amid heightened tensions over an attack last month in Indian-administered Kashmir. Pakistan said it immediately responded to Indian strikes and downed six Indian fighter jets, including three French-made Rafales.

India has not officially confirmed the downing of jets, but its air force chief this week told a news conference in New Delhi that “losses are a part of combat.” Both neighbors traded air, missile, drone and artillery fire for four days before the United States brokered a ceasefire on May 10.

In his message on the Day of Gratitude, President Zardari said the success of ‘Operation Bunyan-um-Marsoos’ against India belongs to both the armed forces and the entire Pakistani nation, who stood like an iron wall against “enemy aggression.”

“I am proud of our Armed forces who responded to Indian provocation with precision, professionalism, and strength. I am glad that the world witnessed and acknowledged Pakistan’s patience and restraint as well as the operational effectiveness that compelled the enemy to cease its aggression. We stood firm. We stood united. And we emerged victorious with dignity,” he said in a statement.

“Pakistan is a peace-loving country and does not harbor aggressive design against any country. However, let there be no doubt: Pakistan will never compromise on its sovereignty, territorial integrity, or its core national interests. Any aggression against our homeland will be met with full force.”

On Friday morning, a 31-gun salute was held in the federal capital of Islamabad and 21-gun salutes in provincial capitals. Several rallies, gatherings, events and visits to national memorials are expected to held, mainly after Friday prayers, across the South Asian country. Public and private institutions will hold commemorative programs as well.

India and Pakistan, both bitter rivals who possess nuclear weapons, have fought three wars since 1947 after gaining independence from British colonial India. The root cause of their conflict is the disputed Himalayan region of Kashmir, which they both claim in full but rule only in part.

This month’s military conflict between the rivals was also triggered by an attack by gunmen on tourists in Indian-administered Kashmir’s Pahalgam town, which killed 26 people on April 22. India blamed the attack on Pakistan. Islamabad denies the charge and has called for a credible, international probe into it.

On Thursday, Pakistan Prime Minister Shehbaz Sharif, accompanied by Army Chief General Asim Munir and senior members of the cabinet, visited Pakistan Air Force (PAF) base Kamra to laud Pakistani pilots for successfully defending the country, hours after Deputy Prime Minister Ishaq Dar informed lawmakers in parliament that the ceasefire agreement between Islamabad and Delhi has been extended till Sunday.

“For now, these are military-to-military communications, so obviously, then political dialogue will take place,” he said. “The resolution of all issues lies there.”

Also on Thursday, India’s Foreign Minister Subrahmanyam Jaishankar said a key water treaty, which governs river water critical to parched Pakistan for consumption and agriculture, would remain suspended until “cross-border terrorism by Pakistan is credibly and irrevocably stopped.” New Delhi suspended the treaty a day after the April 22 attack.

Dar responded by calling the treaty “a no-go area.”

“The treaty can’t be amended, nor can it be terminated by any party unless both agree,” he told parliament.

Militants have stepped up operations on the Indian side of disputed Kashmir region since 2019, when Prime Minister Narendra Modi’s Hindu nationalist government revoked the region’s limited autonomy and imposed direct rule from New Delhi.
 


Back on the pitch: Pakistan Super League resumes after conflict-forced suspension

Updated 39 min 57 sec ago
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Back on the pitch: Pakistan Super League resumes after conflict-forced suspension

  • The Pakistan Super League was suspended on May 9 but last weekend Pakistan and India agreed to a ceasefire
  • The Indian Premier League, also suspended due to the outbreak between the countries, will also resume this weekend

ISLAMABAD: Pakistan’s premier Twenty20 cricket tournament resumes Saturday after a ceasefire between India and Pakistan was achieved. There will be a handful of foreign players returning for the remaining eight games.

The Pakistan Super League was suspended on May 9 but last weekend Pakistan and India agreed to a ceasefire after talks to defuse their most serious military confrontation in decades.

The Indian Premier League, also suspended due to the outbreak between the countries, will also resume this weekend.

PSL organizers first proposed moving the tournament to Dubai but later decided to postpone it after foreign players were reluctant to participate in the tournament due to security concerns. Around 43 foreign cricketers — competing on six PSL teams — were flown out of Pakistan from an air base in Rawalpindi.

Rawalpindi will host the remaining four league matches between May 17-19 before Lahore hosts the playoffs from May 21, including the final at Qaddafi Stadium on May 25.

Zimbabwean all-rounder Sikander Raza is among some of foreign players who have returned to Pakistan. Raza, who plays for Lahore Qalandars, is available for Lahore’s crucial last league game against Peshawar Zalmi on Sunday before he flies to England for test duty starting next week.

Raza will not be available for Lahore if the two-time champions qualify for the playoffs due to his test commitments.

He said that if the PSL resumed, he planned to return to Pakistan, even for just one match.

“I was very clear in my head that I was always going to go back,” Raza told The Associated Press as he trained with his teammates at Islamabad Club ground on Thursday.

“This PSL is not just about winning a trophy, there’s a lot more to it. All the overseas (players) that have come back, whether they’re in Pakistan or India, I think credit must be given to them because cricket unites and the whole purpose of sports all around the world is to unite cultures, countries.”

Lahore will also have Sri Lanka batter Bhanuka Rajapaksa and Bangladesh all-rounder Shakib Al Hasan for its must-win last league game against the Babar Azam-led Peshawar side after Tom Curran and Daryl Mitchel were ruled out due to injuries.

Raza said it was tough for the families of all the players living abroad after there was escalation at the borders.

“Whether it’s Pakistan or India, what happened was tough for everybody,” Raza said. “Sometimes when you’re on the ground, things may not be as bad, but (for) people back home watching TV, sometimes it’s very hard to control what media tells you.”

Lahore team director Sameen Rana said it was important that the PSL returns to finish the season.

“There’s a lot of uncertainty and the conditions which were happening on the ground was not the best, it’s unfortunate,” Rana said. “But from our perspective . . . the important thing is that the PSL is resuming, and that’s what matters.”

Defending champions Islamabad United has brought in Alex Hales of England and Rassie van Dussen of South Africa after initially picking both of them in the supplementary draft while Ben Dwarshuis of Australia is flying back to rejoin the team.

Islamabad, the three-time PSL champions, won five games in a row at the start of the season before four successive defeats.

Finn Allen of New Zealand and Rilee Rossouw of South Africa are rejoining first-place Quetta Gladiators, who have 13 points, three points ahead of Karachi and Islamabad.

Karachi is expecting to have its captain David Warner back from Australia in time to lead the team against Peshawar on Saturday.


IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’

Updated 16 May 2025
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IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’

  • Lender to approve first climate loan payment with the second review of Pakistan’s External Fund Facility program, says source
  • Pakistan’s finance adviser says loan, linked to implementation of key performance indicators, to be released over next 28 months

KARACHI: The International Monetary Fund (IMF) is likely to release the first tranche of its $1.4 billion climate resilience loan for Pakistan “in about six months,” a source with direct knowledge of the development told Arab News on Thursday. 

The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion External Fund Facility program, freeing about $1 billion in cash.

The Washington-based lender is expected to start the Resilience and Sustainability Facility (RSF) funding for Pakistan along with its second review of Islamabad’s EFF program, the source disclosed on condition of anonymity as they are not authorized to speak to media on the matter. 

“With the second review of the EFF, if the [IMF] board approves then they [Pakistan] might get the first tranche of the RSF, ” the source said, adding that the next EFF review is expected to take place “in about six months.”

“For climate financing, nothing will be disbursed now,” they added. 

Pakistan’s finance adviser Khurram Schehzad said the climate loan is not a “one-off payment.”

“The RSF fund will be released gradually over the next 28 months, which is linked to the implementation of 13 KPIs (key performance indicators),” the official told Arab News.

He did not elaborate how much the global lender would release as part of the first tranche.

The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. The South Asian country has been consistently ranked as one of the worst affected countries due to climate change effects. 

In 2022, Pakistan was devastated by flash floods triggered by unusually heavy rains and the melting of glaciers. The catastrophe killed 1,700 people, displaced more than 30 million others and damaged crops and infrastructure worth $30 billion.

That forced Pakistan last year to request the IMF for the RSF fund to address its vulnerability to climate change.

The IMF on May 9 approved the much-awaited climate loan for Pakistan and disbursed the $1.02 billion as its first tranche under the EFF program on May 13.

The Washington-based lender is scheduled to hold its second EFF review of Pakistan’s economic performance on Sept. 15, Sana Tawfik, the head of research at Arif Habib Ltd., said, citing the IMF’s Pakistan Country Report 2024.

When asked if the next IMF review will be delayed, the source replied in the negative. 

The RSF funds are crucial for Pakistan as its dwindling foreign exchange reserves rose to $10.3 billion last week. This amount does not meet the IMF’s three-month import cover threshold requirement.

In its monetary policy statement on May 5, Pakistan’s central bank said delays in the realization of official inflows coupled with “large debt repayments” weakened net financial inflows into the country till March.

Pakistan, which narrowly averted a sovereign default in 2023 after a last-gasp IMF bailout package, owed about $26 billion debt repayments this year ending June. While most of its foreign debt has been repaid, the country still relies heavily on the IMF’s funds to keep its balance of payment position in check.

The central bank expects the country’s foreign reserves to increase to $14 billion by June “on the back of the expected realization of planned official inflows.”

“This build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows,” the SBP said in its statement.


Pakistan Air Force shot down six Indian fighter jets, says PM Sharif

Updated 15 May 2025
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Pakistan Air Force shot down six Indian fighter jets, says PM Sharif

  • Pakistan PM visits air force base in eastern Kamra town with army chief, senior members of the cabinet
  • Pakistan and India engaged in combat for four days last week beafore agreeing to ceasefire on Saturday

ISLAMABAD: Prime Minister Shehbaz Sharif paid rich tributes to the Pakistan Air Force (PAF) on Thursday, crediting them for shooting down six Indian fighter jets during the military conflict between the nuclear-armed neighbors last week.

Pakistan’s government and the PAF recently hailed the use of the J-10Cs, saying they were used to shoot down five Indian fighter jets, including three French Rafales, during hostilities between the two sides on the night of May 6. Four days of fighting between India and Pakistan saw them pound each other with missiles, drones and artillery until the United States brokered a ceasefire on Saturday.

The Indian Air Force (IAF) has so far not commented on the reports that Pakistan downed five of its fighter jets, but its chief said admitted this week during a news conference that “losses are a part of combat.”

Sharif paid a visit to the PAF’s operational air base in Kamra, a town located in Pakistan’s eastern Attock district. Accompanied by Army Chief General Syed Asim Munir and senior members of the cabinet, including Foreign Minister Ishaq Dar, Sharif lauded Pakistani pilots for successfully defending the country when India fired missiles into Pakistani territories last Wednesday night.

“Just now we were given an excellent presentation and in that, the actual situation [of the conflict] surfaced,” Sharif told PAF personnel at the air base. “Based on the presentation I can tell the nation today without fear of contradiction that not five but these falcons, you, shot down six enemy jets.”

In a separate statement, the military’s media wing said the sixth Indian aircraft downed by the PAF was a Mirage-2000 fighter jet. It said the jet was shot down near Pampore, east of Srinagar in Indian-administered Kashmir.

Sharif paid trich tribute to the PAF, saying that it had proven to be superior in combat to the IAF based on its homegrown technical expertise.

“The entire nation takes immense pride in the valor and vigilance of its armed forces,” Sharif said. “Under the capable stewardship of the chief of army staff, our defenders have once again underscored that Pakistan’s security is inviolable and any act of belligerence will be met with a forceful, resolute and unforgiving response.”

Sharif warned India that Pakistan’s armed forces were ready to respond to any future acts of aggression.

“Pakistan’s armed forces remain fully prepared and resolutely committed to defending every inch of our territory,” he said. “We stand united, vigilant, and unshakable for the defense of our homeland.”

Dar earlier on Thursday informed lawmakers in parliament that the ceasefire agreement between Islamabad and Delhi has been extended till Sunday.

“For now, these are military-to-military communications, so obviously, then political dialogue will take place,” he said. “The resolution of all issues lies there.”

India and Pakistan, both bitter rivals who possess nuclear weapons, have fought three wars since 1947 after gaining independence from British colonial India. The root cause of their conflict is the disputed Himalayan Kashmir region, which they both claim in full but administer only parts of.


Pakistan offers lowest-cost Hajj package under government scheme globally, says official

Updated 15 May 2025
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Pakistan offers lowest-cost Hajj package under government scheme globally, says official

  • Nearly 89,000 Pakistani pilgrims are expected to perform Hajj under government scheme this year
  • Pakistan has set cost of long Hajj package at Rs1,075,000 ($3,854), Rs1,150,000 ($4,122) for short one

ISLAMABAD: Pakistan’s Director General Hajj Abdul Wahab Soomro said on Thursday that Islamabad is offering its citizens the lowest-cost Hajj package globally, vowing that authorities have aimed to prioritize pilgrims’ comfort, safety and spiritual fulfillment for this year’s pilgrimage.

Pakistan this year introduced a shortened Hajj program of 20 to 25 days to make the pilgrimage more convenient and accessible, the Ministry of Religious Affairs said earlier this year. It set the cost at around Rs1,075,000 ($3,854) for the long Hajj package and Rs1,150,000 ($4,122) for the short Hajj package, as shorter stays often incur higher airfare, premium accommodation rates, and expedited transport services, which drive up overall costs.

In a statement issued from Makkah, Soomro said the government’s Hajj Scheme for 88,380 pilgrims is being elevated to “unprecedented heights” to ensure a seamless and spiritually enriching pilgrimage, state broadcaster Radio Pakistan reported.

“Highlighting the key initiatives, he [Soomro] said our scheme offers the lowest-cost Hajj package globally,” Radio Pakistan said. “Pilgrims are now given the option to choose between single, double, or triple-bed rooms at an additional cost.”

The official said that due to the non-uniform nature of Makkah’s buildings, accommodations are allocated to Pakistani pilgrims based on pilgrim profiling to ensure optimal convenience.

He said Pakistan’s health care network, in collaboration with the Saudi German Hospital and other leading medical institutions, ensures 24/7 emergency care.

“The DG Hajj said such innovative measures and enhancements demonstrate a strong commitment to facilitating Hajj with maximum convenience at minimal cost,” the statement added.

This year’s Hajj will take place in June, with over 23,620 Pakistanis expected to perform the pilgrimage through private tour operators.