Govt, Alibaba to boost e-commerce
Listen to article
The government is set to partner with Chinese e-commerce giant Alibaba next week in a strategic move to promote the country's exports worldwide. The collaboration aims to strengthen Pakistan's digital supply chain ecosystem by leveraging secure and real-time digital payment solutions such as Raast, the country's instant payment system.
Speaking at the 18th International Conference on 'Mobile Commerce 2025', Faiz Ahmad, Chief Executive of the Trade Development Authority of Pakistan (TDAP), announced, "We are partnering with Alibaba in the next week — to revolutionise all Pakistani products that are discovered, sold, and shifted across borders. It is one of the two global e-commerce giants, including Amazon."
"Our vision is to create a single unified digital supply chain ecosystem, supported by secured and real-time digital payment solutions like the national instant payment system Raast, being successfully operated by the State Bank of Pakistan (SBP)," he said at the one-day conference organised by Total Communications in Karachi.
Ahmad elaborated with a practical example: imagine a small business in Skardu receiving a bulk order from Alibaba. The payment arrives instantly into its mobile wallet via Raast. The same wallet is used to pay a supplier in Karachi through Raast. Inventory is hit, tracked, and restarted without cash, without a bank, and without barriers. "That is the power of digital commerce. That is the vision we are materialising right now. Raast makes this region not only possible but practical and scalable. This is not theoretical. It is actionable. This is the future we are building with your support."
TDAP and the Ministry of Commerce are fully committed to driving this digital shift, not just as a policy priority but "as a national imperative," he added.
Faisal Mahmood, Head of Digital Public Infrastructure at Karandaaz Pakistan, raised concerns about the central bank's capacity to run pilot phases of projects within the SBP sandbox. He questioned whether the necessary resources — such as funding, expertise, and technical support — are adequately available to effectively support such initiatives.
To recall, the SBP launched its sandbox guidelines around two months ago, in May 2025. Soon, it will invite all entities — regulated or unregulated — such as banks, fintechs, and startups, to test their digital business ideas and potential solutions in a controlled environment with relaxed regulations during the testing phase.
Ali Imran Khan, Deputy CIO at Meezan Bank, emphasised that open banking represents the future of financial services. He explained that it enables financial institutions to securely share customer data with third parties, allowing for the development of personalised financial solutions. Importantly, this data sharing only occurs with the explicit consent of account holders.
Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, remarked that cash has remained the "king of the ring" so far. However, he emphasised that digitalisation is no longer just an optionit has become essential for driving growth.
The one-day conference hosted four panel discussions, including: (1) From Experiment to Execution: The Role of Regulatory Sandboxes in Digital Financial Services; (2) From Legacy to Agility: The Future of Financial Services with Open Banking; (3) Navigating Payments, Lending and Technologies in E-Commerce; and (4) The Rise of Digital Wallets and Its Relevance to Pakistan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Vietnam Q2 GDP growth quickens on strong exports, US trade deal brightens outlook
HANOI: Vietnam's economy grew at a faster pace in the second quarter of this year led by strong exports, in an encouraging sign just days after U.S. President Donald Trump said he would place lower-than-threatened 20% tariffs on many Vietnamese products. Concerns over the Southeast Asian manufacturing hub's outlook had been growing in the run up to the trade deal announced on Wednesday, particularly as the United States is Vietnam's biggest export market. Gross domestic product growth in the April-June quarter accelerated to 7.96% year-on-year, from the 6.93% in the first quarter, government data showed on Saturday. It was just short of Hanoi's full-year growth target of at least 8%. 'Economic performance in the first half of this year was positive and close to our target amid global and regional economic uncertainties,' the National Statistics Office said. Exports were a bright spot in the last quarter, rising 18.0% to $116.93 billion from a year earlier, while imports were up 18.8% at $112.52 billion, translating into a trade surplus of $4.41 billion, the NSO data showed. Trump says US struck trade deal with Vietnam Industrial production in the period rose 10.3%, while June consumer prices rose 3.57%. Trump announced on Wednesday the United States and Vietnam reached a trade deal, under which Vietnamese goods would face a 20% tariff, with trans-shipments from third countries through Vietnam also facing a 40% levy. Vietnam could import U.S. products with a zero percent tariff. The tariff rates were lower than an initial 46% rate threatened by Trump in April. Vietnam hailed the deal as a boost for business and said negotiators were working to finalise details, as business groups awaited clarity on the finer points to assess the impact of the new tariffs. The United States is the largest export market for Vietnam, a regional manufacturing hub housing several multinational companies such as Samsung Electronics and Foxconn. The United States recorded a trade deficit of $123 billion with Vietnam last year, one of its highest globally. Vietnam is also home to several Chinese companies, which analysts said are likely the main targets for the 40% tariff on trans-shipments. China is Vietnam's largest two-way trading partner on which it relies heavily for components and materials for its manufacturing industries. Fitch Solutions said in a note on Friday that Vietnam's exports and investment will remain strong for the rest of the year and signalled upside risks for its 2025 GDP growth forecast of 6.4%. 'With the new 20% tariff, we think the government will speed up industrial upgrading and shift exports from low-margin goods to higher value-added products such as semiconductors,' it said in a note. Dominic Scriven, founder and chairman of investment firm Dragon Capital, said the trade deal is 'net-positive' and the potential GDP hit is less severe than feared. 'With external trade risk now moderating, attention can return to the country's core growth engine, the domestic and private sector economy,' he said.
Express Tribune
7 hours ago
- Express Tribune
Govt finalises industrial policy
The SAPM noted that the industrial sector's share in GDP has declined from 26% in 1996 to 18% in 2025. photo: file Listen to article The government on Friday finalised recommendations for a long-term industrial policy, proposing 10-year loans for industrial units with a two-year grace period. Several other measures have also been suggested to boost industrialisation. To support manufacturing, the policy proposes reducing corporate tax from 29% to 26% over three years. Amendments to the SECP Act, Anti-Money Laundering Act, and Income Tax Ordinance have also been recommended. A high-level meeting of the Prime Minister's Committee on Industrial Policy was held under the chairmanship of Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan. The meeting reviewed and finalised the recommendations of eight specialised sub-committees. These proposals mark the start of implementing the new industrial policy. The policy categorises borrowers into four groups for financing. According to State Bank of Pakistan (SBP) guidelines, the first group includes viable units with moderate repayment ability, and the second includes marginally viable ones needing external support. Interest rates will be adjusted based on the policy rate and revival potential. Loans may be extended for up to 10 years, with an optional two-year grace period. Early repayment will be allowed without penalty for back-ended projects. Fresh working capital of up to 20% of the restructured principal will also be provided. A haircut policy of up to 60% on the principal will be allowed under board-sanctioned approval. This amount may be recorded as a "shadow entry" for tracking but won't require provisioning or audit qualification. Remaining loan amounts will be listed as "Restructured but Active" in regulatory reports. Full and final settlements (FFS) will be allowed once, through lump sum or staggered payments over 12-24 months. Banks will record waived amounts separately for tax purposes under the Income Tax Ordinance. Loan write-offs will qualify for tax deduction under Section 29. Each restructuring case will report to a subcommittee of the bank's board. Government-owned banks must set annual targets for resolving non-performing loans. Incentives such as bonuses or board fees may be tied to target achievement. For governance and risk control, third-party due diligence will be mandatory for loans up to Rs100 million. Chartered accountancy firms or financial institutions will verify the due diligence. SBP will launch a portal displaying monthly sector and province-wise summaries. A whistle-blower channel will allow reports of misconduct or non-transparent dealings. Each revived unit will be monitored for at least two years, with quarterly reports submitted to the Ministry of Industries and Production (MoIP). Khan noted that the industrial sector's share in GDP has declined from 26% in 1996 to 18% in 2025. He stressed the urgency of reviving this sector, increasing exports, and developing import substitutes. Eight sub-committees were earlier formed to address key challenges. Their proposals include SBP guidelines for reviving sick industries and amending the Corporate Rehabilitation Act 2018. Banks have been asked to use forecasting tools to detect early signs of distress. To ensure fast execution, SAPM Khan formed 10 new sub-committees and asked them to deliver tangible outcomes within a week. He said the new policy could trigger an industrial revolution and confirmed the recommendations were presented to Prime Minister Shehbaz Sharif, who appreciated the efforts.
Express Tribune
7 hours ago
- Express Tribune
SBP injects Rs13tr into banking system via OMOs
Listen to article The State Bank of Pakistan (SBP) injected a total of Rs13 trillion into the banking system through conventional and Shariah-compliant Open Market Operations (OMOs) on July 4, 2025, in a move aimed at maintaining short-term liquidity. According to official data, the conventional OMO injection amounted to Rs12.647 trillion, accepted at a return rate of 11.03%, with most of the liquidity injected via 14-day tenor instruments. In parallel, the central bank conducted a Shariah-compliant Mudarabah-based OMO, injecting an additional Rs361.6 billion through 7-day and 14-day instruments at return rates of 11.11% and 11.10%, respectively. This large-scale liquidity operation reflects massive rupee circulation and an inflationary environment that erodes public buying power. Meanwhile, the Pakistani rupee posted a slight decline against the US dollar in the interbank market on Friday, slipping by 0.04%. By the day's close, the local currency was quoted at 283.97, down by 11 paisas from the previous session's closing rate of 283.86. Moreover, gold prices in Pakistan declined on Friday, primarily due to subdued local demand amid Ashura-related closures, even as international bullion markets witnessed a rebound driven by a softer US dollar and renewed safe-haven inflows ahead of potential trade policy moves by former US President Donald Trump. According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs1,500, settling at Rs355,500. Similarly, the rate for 10 grams of gold fell by Rs1,286 to Rs304,783. The dip in domestic prices contrasts with gains earlier in the week. On Tuesday, gold had risen by Rs800 per tola, reaching Rs357,000. Adnan Agar, Director at Interactive Commodities, explained that global market activity remained subdued due to a bank holiday in the United States. 'The market is relatively inactive today, with gold trading between $3,325 and $3,344 per ounce. Current levels are hovering around $3,332,' he noted. Agar added that volatility is expected to return next week when markets reopen, particularly as attention turns to the US president's reinstatement of trade tariffs.
