RAWALPINDI: Pakistan's informal financial realm, created by ordinary individuals to manage their money and savings through mutual assistance, is now being tapped by digital companies who claim to be striving for greater economic inclusion, especially for the country's female population.
Informal financial solutions like rotating credit and savings associations, or "committees" in local parlance, allow people to come together each month and contribute a fixed amount to generate a pool of money which is then handed over to a member on a rotational basis until everyone involved has taken the lottery.
According to the 2018 research by a fintech company, Oraan, the method is used by 41 percent of the population in Pakistan, mostly women, to manage their finances.
Oraan, a digital application which puts committee parties into the hands of its users, has been downloaded by thousands of people, 84 percent of them women, since its launch in 2018.
"Financial options for women in Pakistan are limited," the company's chief executive officer Halima Iqbal told Arab News over a conference call on Friday. "So, we started exploring things from that perspective and asked ourselves: If women cannot access financial services easily, how were they banking?"
Research pointed out that alternative banking solutions were the most popular tool to access finance, especially for women.
"We paid attention to how people were interacting with money in these spaces and what the inefficiencies were," she continued. "That's how Oraan came into being."
Unlike the traditional way, Oraan matches individuals with communities based on their budgets and needs, eliminating the requirement for an existing social group to join a committee.
This not only helps it provide an important financial service but also builds communities and multiplies possibilities for financial inclusion for its users.
"It's interesting to note that a product like a committee can create greater financial inclusion since it provides an easy entry point into the world of financial management," commented Farwah Tapal, the organization's chief operating officer.
Sana Tawfik, senior research analyst at Arif Habib Limited, spoke to Arab News about how banks could move toward informal banking solutions in the digital sphere.
"Our research shows that only nine percent of Pakistanis save for retirement," Tawfik told Arab News over the phone, "and people who engage with committees are only receiving lump sums as opposed to return on investments."
"Overall banks should look into the digitization of informal banking such as committee parties as something that the country should be moving toward because the numbers show people are familiar with it and it is a customer behavior they can build on."
Pakistani fintech companies tap into informal banking sector to enhance financial inclusion
https://arab.news/6mpug
Pakistani fintech companies tap into informal banking sector to enhance financial inclusion
- Research shows 41 percent of Pakistanis rely on informal banking and financial solutions
- Management of Oraan fintech company says its customer base largely consist of women with limited financial options
Pakistan confirms new polio case in northwest, bringing 2025 total to eight
- The country has launched a week-long anti-polio drive to immunize over 45 million children
- Pakistan and Afghanistan are the only two polio-endemic countries throughout the world
KARACHI: Pakistan’s polio eradication program confirmed a new case of the disease in the northwestern Khyber Pakhtunkhwa province on Friday, bringing the total count to eight as the nationwide drive to inoculate millions of children continues.
Pakistan launched a campaign earlier this week to vaccinate over 45 million children against polio. The country reported 74 cases in 2024 and has planned three major vaccination drives in the first half of this year.
The current campaign is the second of 2025, with a third set to begin from May 26 to June 1.
“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health Islamabad has confirmed a polio case from District Bannu, Khyber Pakhtunkhwa,” the lab said in a statement, adding this was the third case from the province this year.
It also urged parents to ensure that their children receive repeated doses of the polio vaccine to protect them from the disease.
On Wednesday, two security officials assigned to protect a polio vaccination team were killed in a gun attack in the Teri area of Mastung, in the southwestern Balochistan province.
Pakistan and neighboring Afghanistan remain the last polio-endemic countries in the world. In the early 1990s, Pakistan reported around 20,000 cases annually, but by 2018, the number had dropped to eight. Six cases were reported in 2023 and only one in 2021.
Pakistan’s polio eradication program, launched in 1994, has faced persistent challenges, including vaccine misinformation and resistance from some religious hard-liners who claim immunization is a foreign conspiracy to sterilize Muslim children or a cover for Western espionage.
Militant groups have also repeatedly targeted and killed polio vaccination workers. Last week, gunmen attacked a vehicle and abducted two polio workers in Khyber Pakhtunkhwa.
On April 21, a militant was killed when a police team escorting a polio team on the outskirts of Wana, the main town in South Waziristan district, responded to a gun attack.
Security forces kill six militants in Pakistan’s northwest
- Four other militants were injured in the intelligence-based operation carried out in Bannu district
- Pakistan PM praises the security forces following the raid, acknowledging their professionalism
ISLAMABAD: Pakistan’s security forces killed six militants during an intelligence-based operation in the northwestern district of Bannu, the military said on Friday, amid a spike in attacks in its western provinces bordering Afghanistan.
Authorities blame the Tehreek-e-Taliban Pakistan (TTP), an umbrella group of various militant factions, for much of the violence directed against the civilians and security forces in the area.
Pakistani officials refer to TTP fighters as “khwarij,” a term rooted in early Islamic history used for an extremist sect that declared other Muslims apostates.
“On night 23/24 April 2025, Security Forces conducted an intelligence based operation in Bannu District on reported presence of Khwarij,” the military’s media wing, Inter-Services Public Relations, said in a statement.
“During the conduct of operation, own troops effectively engaged the khwarij location and after an intense fire exchange, six khwarij were sent to hell, while four khwarij got injured,” it added.
The statement informed a “sanitization operation” was underway to eliminate any remaining militants, adding that security forces were determined to eradicate militancy from the country.
Prime Minister Shehbaz Sharif praised the security forces following the raid, acknowledging their professionalism and resolve.
“The nefarious designs of terrorists, who are enemies of humanity, will continue to be crushed,” he said in a separate statement circulated by his office, vowing that Pakistan’s fight against militancy would persist until it was completely eradicated.
Pakistan’s deputy PM briefs Saudi FM on response to India’s actions after Kashmir attack
- Ishaq Dar criticizes India’s ‘baseless’ accusations against Pakistan, cautions against escalatory moves
- Pakistan denies involvement in a militant attack in Indian-administered Kashmir in which 26 were killed
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar, who also serves as foreign minister, briefed his Saudi counterpart, Prince Faisal bin Farhan, on Islamabad’s response to India’s retaliatory moves after a militant attack in Indian-administered Kashmir, saying his country would respond firmly to any external aggression.
The two leaders spoke over the phone amid heightened tensions between the nuclear-armed neighbors after gunmen killed 26 civilians in the tourist town of Pahalgam earlier this week.
India accused Pakistan of involvement in the attack — a charge Islamabad denied — before announcing a series of retaliatory steps, including suspending the Indus Waters Treaty, expelling Pakistani diplomats and shutting down the Attari-Wagah border crossing.
Pakistan held a high-level national security meeting in response, criticizing Indian actions and promising a forceful response if New Delhi diverted river waters or resorted to any military action.
“DPM/FM [Dar] briefed Prince Faisal on decisions taken by Pakistan’s National Security Committee in the wake of unilateral measures announced by India,” the foreign office of Pakistan said in a statement after the phone call. “He rejected India’s baseless allegations and cautioned against further escalatory moves.”
“DPM/FM reaffirmed Pakistan’s resolve to respond firmly to any aggression,” the statement added.
Both ministers also expressed satisfaction with the state of bilateral relations and agreed to maintain consultations on evolving regional dynamics.
Pakistan and Saudi Arabia have long-standing ties, particularly in defense and diplomacy, and often coordinate positions at multilateral forums.
As part of its wider diplomatic outreach, Pakistan’s Foreign Secretary Amna Baloch briefed ambassadors and senior diplomats in Islamabad earlier this week, highlighting the National Security Committee’s stance and reiterating Pakistan’s rejection of militancy in all its forms.
Pakistan also hosted the Organization of Islamic Cooperation’s Special Envoy for Jammu and Kashmir, Yousef Al Dobeay, from April 19 to 22.
Officials briefed him on the situation in the disputed region of Kashmir while maintaining that the people of Kashmir looked to the Muslim world and the OIC for support in their struggle for self-determination.
Pakistan warns Indian suspension of Indus Waters Treaty could set precedent for China
- New Delhi suspended the river-sharing agreement after a militant attack in Indian-administered Kashmir
- PM Sharif’s aide says Pakistan is discussing the situation with friendly countries and the United Nations
ISLAMABAD: India’s suspension of the Indus Waters Treaty (IWT) could set a precedent for China to block the Brahmaputra River, a senior aide to Prime Minister Shehbaz Sharif warned on Friday, potentially putting New Delhi in a difficult position.
India relies on rivers that originate in China, particularly from the Tibetan Plateau, where major waterways like the Brahmaputra and Sutlej rivers begin.
China’s dam-building activities and lack of a formal water-sharing agreement have raised concerns in India about future water security during floods or droughts. The absence of binding treaties leaves India vulnerable to upstream decisions made by Beijing.
In 2016, China blocked the flow of the Xiabuqu River, which feeds the Brahmaputra, as part of a hydropower project in Tibet after a militant attack in Indian-administered Kashmir.
“If India does something like this that they stop the flow [of rivers] to Pakistan, then China can also do the same thing,” Rana Ihsaan Afzal said while speaking to Geo News. “But if things like this happen then the entire world will be in a war.”
The IWT is a landmark water-sharing agreement signed in 1960 between India and Pakistan, brokered by the World Bank, to manage the use of rivers flowing through both countries from the Himalayas. Under the treaty, India was granted control over the three eastern rivers — Ravi, Beas and Sutlej — while Pakistan received rights over the three western rivers — Indus, Jhelum and Chenab.
Despite multiple wars and ongoing tensions, the treaty has largely held as a rare example of sustained cooperation.
However, India on Wednesday suspended the six-decade-old river-sharing treaty with Pakistan as part of a series of measures following a deadly militant attack in Indian-administered Kashmir, for which it holds Islamabad responsible.
Pakistan has denied any involvement in the attack, in which gunmen killed 26 people at a tourist site in Pahalgam, a scenic town in Anantnag district, marking the deadliest assault on civilians in the country in nearly two decades.
Highlighting that India’s actions threatened the food security of 250 million people, Afzal said under international water laws, upper riparian countries cannot “stop” water but may only “regulate” it.
He added that upper and lower riparian countries coexist peacefully across the world and warned that India’s threat could undermine the entire system of peaceful water-sharing mechanisms, potentially escalating tensions toward conflict.
“This will not be easy at all,” he said. “The United Nations and lower riparian countries throughout the world will raise their voice against it.”
Afzal confirmed that Pakistan was engaging friendly countries through diplomatic channels and was also in contact with the UN.
Pakistan PM hails negative SPI inflation, says economic indicators improving
- SPI focuses on short-term price movements that affect low- and middle-income households most directly
- Shehbaz Sharif says the government wants to pass on the benefits of improving economy to the public
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday expressed satisfaction over the annual decline in Pakistan’s Sensitive Price Index (SPI), which he said had fallen to -3.52% in April 2025, compared to 26.94% in the same month last year.
The SPI measures weekly changes in the prices of essential items such as food, fuel and utilities across various consumption groups. Unlike the broader Consumer Price Index (CPI), which captures overall inflation, the SPI focuses on short-term price movements that affect low- and middle-income households most directly.
“The [SPI] rate stood at 26.94% in the same month last year, whereas in April 2025, it has been recorded at minus 3.52%,” the prime minister said in a statement issued by his office.
“The country’s economic indicators are improving with each passing day,” he added. “The government is making every effort to ensure that the benefits of these improving economic indicators reach the public.”
Sharif also commended his economic team for their efforts in stabilizing the economy and curbing inflation.
In May 2023, Pakistan experienced its highest recorded inflation, with the CPI reaching 38% year-on-year, driven by surging food and energy prices.
The recent decline in the SPI indicates potential relief for consumers, though the government continues to face challenges in managing the economy, including meeting fiscal targets and securing external financing.
