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Business Recorder
15-07-2025
- Business
- Business Recorder
PM calls for overhaul of economic infrastructure
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for a swift overhaul of the country's economic infrastructure, urging the digitisation of public payment systems, streamlined processes for small and medium-sized enterprises (SMEs), and the integration of state-owned enterprises (SOEs) into a unified digital framework. During a weekly review meeting, senior officials informed the prime minister that consultations are currently under way with federal ministries, regulatory bodies, provincial departments, and district administrations to fully digitise both tax and non-tax payments between the government and the public. In the first phase of the initiative, they said that the authorities have completed data mapping for all financial transactions between federal government entities and transfers to provincial governments. Officials stated that the goal is to make these payments fully digital. Aurangzeb seeks roadmap for transition to a digital economy PM Sharif emphasised that digitising the economy is a top priority for his administration, stressing that digital payment systems will enhance transparency and ease for citizens. 'The transition to a cashless economy will bring transparency and convenience. It is essential for modernising the country's financial ecosystem,' Sharif said. A statement issued by the Prime Minister's Office noted that the briefing was told initial efforts will focus on transitioning salaries, pensions, and procurement payments for government employees to digital platforms. The government also aims to streamline payments to contractors through electronic means, it added. PM Sharif directed that the transition be made more accessible for small and medium-sized enterprises (SMEs), which are critical to the country's economic growth. He instructed that all state-owned enterprises (SOEs) be brought under the digital payment framework. To strengthen governance of the Raast system – the country's first government-backed instant digital payment system – the Prime Minister ordered the appointment of its chairman and board of governors by September. He also called for the inclusion of economic and business experts on its board of directors to ensure strategic oversight. A progress update revealed that the job advertisement for Raast's chief executive officer (CEO) has already been issued. Officials said that digital banking users are expected to grow from 95 million to 120 million, and digital payments are projected to double from Rs7.5 billion to Rs15 billion. The briefing noted that a nationwide awareness campaign to promote Raast and digital payments will be launched next month. Additionally, import duties on digital payment devices have been abolished, and a Digital Payments Index is set to launch within the next month to benchmark Pakistan's progress against global standards. The briefing also highlighted key infrastructure developments, including the Capital Development Authority (CDA) approving the Right of Way for digital public infrastructure in Islamabad. Furthermore, the Islamabad City mobile app has been successfully integrated with the Raast system. Officials said all foreign remittances are being brought into the banking system as part of the remittance digitisation drive. Coordination is also ongoing with provincial governments, Gilgit-Baltistan, and Azad Jammu and Kashmir to expand the digital payment network. Public Wi-Fi services and e-libraries are scheduled to become operational in designated areas of Islamabad by December 2025. A third-party validation of the digital public infrastructure is currently under way on the Prime Minister's instructions. The State Bank of Pakistan (SBP) has directed federal and provincial authorities to adopt QR codes as a primary payment method. In line with this, the number of commercial points using QR codes and other digital methods is being expanded from 500,000 to 2 million nationwide. The meeting was attended by several key officials, including Federal Minister for Planning and Development Ahsan Iqbal, Minister for Law and Justice Azam Nazeer Tarar, Minister for IT and Telecom Shaza Fatima, Minister for Petroleum Ali Pervaiz Malik, Adviser to the Prime Minister Dr Tauqir Shah, Minister of State for Finance Bilal Kayani, and other senior government officials. Copyright Business Recorder, 2025
Express Tribune
14-07-2025
- Business
- Express Tribune
PM directs FBR to set up helpline to assist filers
Prime Minister Shehbaz Sharif on Monday said that expanding the tax base and reducing the burden of taxes on the poor were among the top priorities of the government. He was chairing a meeting to review progress on the digitization of the Federal Board of Revenue (FBR), the implementation of an Artificial Intelligence (AI)-based system, and other reforms. Hailing the availability of simple tax returns in Urdu, the prime minister said a helpline should be established to assist with the process of filing tax returns and digital invoicing should also be launched in Urdu. "In tax reforms, the focus should remain on the convenience of the common man," he added. The prime minister directed that third-party validation be ensured for all FBR reforms to maintain transparency. He stated that for the public's convenience, tax returns have been made extremely easy by making them digital, concise, and linked with a centralized database. He said salaried individuals will benefit the most from the new simplified tax returns. The prime minister instructed that a public awareness campaign should be launched about the ease of tax returns so more and more people can file their returns under the new system. He also instructed that small and medium-sized businesses should be given special support in joining the digital invoicing system. Digital economy Prime Minister Shehbaz Sharif Monday said top priority of the government was to bring transparency in the economy through digitization system. He was chairing the weekly meeting on cashless and digital economy. He said digitization of the payment mechanism from government to people and people to government will create transparency and ease for consumers. He directed that the steps of digitization and cashless economy should be made easier for small and medium entrepreneurs. He said the appointment of the Board of Governors and Chairman of Raast should be completed by September. Experts of economy and business should be included in the Board of Directors of Raast, he added. The prime minister said all State-Owned Enterprises (SOEs) should also be brought under the purview of the digital system. Prime Minister Shehbaz Sharif expressed pleasure over the Pakistan Stock Exchange crossing a historic level of 135,000 points, saying that it reflected the confidence of the business community in Pakistan's economy. The prime minister, in a statement, said that the current positive economic indicators showed the government's policies moving in the right direction. He said that providing a conducive environment to the business community was the government's priority.
Business Recorder
10-07-2025
- Business
- Business Recorder
Remittance boom fuelling recovery
In fiscal year 2024–25, Pakistan witnessed a historic surge in remittance inflows, which climbed to an all-time high of $38.3 billion, marking a 26–27 percent increase compared to the $30.3 billion received in FY24. This robust growth not only exceeded earlier projections but also provided a critical buffer for the country's balance of payments. On average, monthly remittances reached $3.19 billion, significantly up from $2.52 billion the previous year. These inflows played a vital role in stabilizing Pakistan's external account, contributing to a current account surplus for the first time in over a decade. Moreover, they helped ease inflationary pressures and supported a relatively stable exchange rate. June 2025 capped the fiscal year with inflows totalling $3.406 billion, a year-on-year rise of nearly 8 percent from June 2024. However, this figure represented a month-on-month decline of around 7.5–8 percent from the peak in May 2025. Country-level data shows that Saudi Arabia contributed $823 million, the UAE $717 million, and the UK $538 million in June. Notably, remittances from the United States declined 13 percent year-on-year, while inflows from the European Union rose sharply by 34 percent. While Gulf countries continued to dominate the remittance landscape, the notable rise from EU countries helped diversify the sources. This shift reflects changing diaspora patterns and potentially more effective formal channelling of funds from Europe. The drop from the US may be attributed to softer economic conditions or seasonal variations. Several structural factors underpinned this record-breaking year. The government's Pakistan Remittance Initiative (PRI), coupled with the increased adoption of digital transfer systems like Raast, played a vital role in formalizing flows and reducing reliance on informal channels. A relatively stable rupee, an improved macroeconomic environment, and a continued boom in Gulf labour markets all contributed to the uptick. Additionally, remittance incentives and relaxed regulatory frameworks encouraged overseas Pakistanis to prefer formal routes. With increased demand for Pakistani labour in the Middle East and broader economic recovery, remittance flows remained resilient throughout the year. In regional comparison, countries like Bangladesh, India, and the Philippines have adopted targeted strategies to attract and sustain remittance inflows. Bangladesh, for example, provides a cash incentive on remittances sent through formal banking channels, which has significantly shifted flows away from informal hundi/hawala systems. India leverages its vast, diversified diaspora with proactive consular engagement, digital transfer systems like Unified Payment Interface (UPI), and tax benefits for non resident Indians. The Philippines, through its Overseas Workers Welfare Administration (OWWA), offers structured reintegration programs and savings schemes that encourage Filipino workers abroad to invest back home. These countries also maintain stronger coordination between central banks, labour ministries, and overseas missions to ensure timely resolution of issues faced by their diaspora. Pakistan, while making progress with initiatives like Raast and PRI, still lags in diaspora engagement strategies. Expanding financial literacy among migrant workers, strengthening bilateral labour agreements, and offering more investment-linked remittance products could help address this. For FY26, the target for remittances has been set at $39.4 billion, underscoring the government's expectation to sustain this momentum. However, some risks include including potential slowdowns in Gulf economies, geopolitical shifts, and domestic policy inconsistency. Maintaining remittance growth will require continued facilitation through policy incentives, improved digital infrastructure, and stronger diaspora engagement. More importantly, the challenge lies in channelling these inflows toward long-term investment and development goals rather than mere consumption, thereby transforming remittances from a financial buffer into a catalyst for inclusive economic transformation.
Express Tribune
04-07-2025
- Business
- Express Tribune
Govt, Alibaba to boost e-commerce
Muhammad Hamayun Sajjad, CEO of Mashreq Pakistan, emphasised that digitalisation is no longer just an option—it has become essential for driving growth. photo: file 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.
Business Recorder
03-07-2025
- Business
- Business Recorder
Pakistan set to partner with Alibaba to boost exports
Pakistan will formalise a strategic partnership with Chinese e-commerce giant Alibaba next week in a bid to boost exports through digital trade infrastructure. Faiz Ahmad Chadhar, Chief Executive of the Trade Development Authority of Pakistan (TDAP), revealed on the sidelines of the 18th International Conference on Mobile Commerce 2025 to Business Recorder that an agreement signing ceremony will take place on July 10 in Islamabad. 'We are partnering with Alibaba 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,' Chadhar said while addressing the one-day conference organised by Total Communications in Karachi. The collaboration aims to strengthen Pakistan's digital supply chain ecosystem and integrate it with secure and real-time payment systems such as Raast, Pakistan's instant payment platform operated by the State Bank of Pakistan (SBP). Pakistan's e-commerce sector faces operational costs surge amid new taxes 'Our vision is to create a single unified digital supply chain ecosystem, supported by secured and real-time digital payment solutions like Raast.' He painted a vivid picture of the envisioned system: '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 on Raast. Inventory is hit, tracked, and restarted – without cash, without bank, and without barriers.' 'That is the power of digital commerce,' he added. 'That is the vision we are materializing 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.' Chadhar emphasised that both 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.' At the same conference, Faisal Mahmood, Head of Digital Public Infrastructure at Karandaaz Pakistan, raised concerns about SBP's sandbox initiative. He questioned whether the central bank has the required funding, expertise, and technical support to effectively run pilot phases of digital projects. To recall, the SBP launched its sandbox guidelines around two months ago, in May 2025. Soon, it would invite all entities – whether 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 of the business ideas. Ali Imran Khan, Deputy CIO at Meezan Bank, underlined open banking as the future, enabling personalised solutions through consent-based data sharing. Mashreq Pakistan CEO Muhammad Hamayun Sajjad stressed that while cash has remained the 'king of the ring' digitalisation is now not an option but essential for growth.
