Pakistan’s digital footprint gains momentum with rising e-banking, PoS transactions — central bank

This photograph taken on March 4, 2015 shows a Pakistani resident waiting to withdraw currency from an ATM in Islamabad. (AFP/File)
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Updated 29 May 2023
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Pakistan’s digital footprint gains momentum with rising e-banking, PoS transactions — central bank

  • During Q3 FY23, e-banking transactions increased by 4.3% in volume, 11.2% in value
  • Around 81% of all debit card holders in Pakistan are male while only 19.2% are female

KARACHI: The volume and value of digital transactions in Pakistan continue to grow, with the South Asian country witnessing an expanding digital footprint as it pushes for the digitalization of its payment systems, the central bank said on Monday.

Increasing collaboration between banks and fintech companies has provided efficient, accessible and user-friendly digital payments platform for customers, allowing a greater number of customers to use digital channels to make payments, the State Bank of Pakistan said in its third quarterly review of Payment Systems for Fiscal Year 2022-23, which covers the January-March 2023 period.

Pakistan’s central bank expects migration to electronic means will boost Pakistan’s GDP by 7%, create four million jobs, and result in new deposits of $263 billion and represent a potential market of $36 billion by 2025.

“Adoption and acceptance of digital instruments has been increasing steadily,” the central bank report, released on Monday, said.  

During the third quarter of fiscal year 2023, overall e-banking transactions increased by 4.3% in terms of volume and 11.2% in terms of value. Internet and mobile phone banking transactions also grew in volume by 9.9% from 200.7 million to 220.5 million and in value by 19.1% from Rs9,167.6 billion to Rs10,922.3 billion, the State Bank of Pakistan reported.  

At the end of March 2023, there were 9.3 million internet banking, 15.3 million mobile phone banking and 48.4 million branchless banking app users. In addition to this, holders of e-wallets reached 1.6 million.

Customers using Raast, Pakistan’s first instant payment system, for online Person-to-Person (P2P) funds transfers increased to 29.2 million users from 25.8 million. P2P value and volume of transactions processed through Raast during the third quarter grew by 92.3% and 55.6% respectively, with 41.2 million transactions amounting to Rs872.8 billion respectively.

With increasing number of digital platforms and online shopping avenues, transactions through Point-of-Sale (PoS) have also witnessed growth, with volume of transactions increasing by 6.8% and value by 10.1%.  

However, ATMs transactions remained similar to the previous quarter in terms of volume but increased 6% in value, according to the SBP report.  

The average ticket size of transactions through PoS was Rs5,463 per transaction while for ATM based transactions, it was Rs15,429 per transaction, according to the report.  

The value of e-commerce transactions processed by banks increased by 7.1% to reach Rs36.6 billion by the end of the third quarter of FY23.

There were 112,302 PoS machines installed across the country by the end of Q3 FY23, increasing from 96,975 PoS machines in the same quarter last year.

The volume of paper-based transactions declined from 95.5 million in Q2 FY23 to 94.3 million in Q3 FY23. However, its value increased by 3% to Rs1,646.6 billion during the quarter.

“As of quarter-end Mar-23, total payment cards issued in Pakistan stood at 48.4 million of which, 46.0 million are issued by Banks/ Micro Finance Banks (MFBs) while the remaining 2.4 million are issued by EMIs,” the report said.

Payment cards in Pakistan can be categorized into four categories, debit, credit, pre-paid and social welfare cards. Out of total cards in circulation, there are 37.1 million debit cards capturing 76.7% share of total cards followed by 9.2 million social welfare cards that make up 19.1%, 1.9 million credit cards, which is 4%, and 0.2% prepaid cards.  

However, the gap between male and female debt and credit card holders remains large in Pakistan.  

“Around 81% of all debit card holders are male, 19.2% female,” the report said.  


Rains and flash floods kill 11 in Pakistan’s Swat, claim 12 lives in Punjab

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Rains and flash floods kill 11 in Pakistan’s Swat, claim 12 lives in Punjab

  • A search operation to find the three missing persons was still underway in Swat on Saturday
  • Met Office warns the risk of heavy rains and flash floods will remain high until at least Tuesday

PESHAWAR/KARACHI: At least 11 people have been killed in flash floods in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, while heavy rains have claimed another 12 lives in the most populous Punjab province, provincial rescue and disaster authorities said on Saturday.

Flooding in the Swat river swept away 17 people early Friday, of which three were rescued and bodies of 11 others were recovered.

Shah Fahad, director-general of the provincial rescue service, said a search operation to find the three missing persons was still underway.

“Rescue 1122 operation is currently underway in different areas of Swat, including Khwaza Khela, Kabal Bypass and Barikot,” Fahad said in a statement. “More than 120 personnel of Rescue 1122 are engaged in relief activities.”

A rescue worker rows a raft while searching for survivors, after tourists, who were on a picnic, were swept away by overflowing floodwaters in the Swat River, in Swat Valley in Pakistan on June 27, 2025. (REUTERS)

Flooding in the province has also damaged 56 houses, six of which were destroyed, the KP Provincial Disaster Management Authority (PDMA) said on Friday.

The ongoing spell of rains, which began on June 25, has killed a dozen people in the eastern Punjab province and delayed the arrival and departure of trains in Sindh province in the south.

“Twelve people died and 39 were injured in various accidents,” the Punjab PDMA said in a statement. “Majority of deaths were caused by the collapse of roofs and walls.”

Punjab PDMA chief Irfan Ali Kathia urged citizens to avoid unnecessary travel and not to stay in dilapidated homes in bad weather conditions.

The Pakistan Meteorological Department has warned that the risk of heavy rains and possible flash floods will remain high until at least Tuesday.

Babar Raza, a spokesperson for Pakistan Railways, told Arab News the weather conditions had affected the railway signaling system, while the speed of trains had also been deliberately reduced for the sake of passenger safety.

“As a result, some trains are reaching their destinations with a delay of three to four hours,” he said. “No trains have been canceled so far.”

Pakistan is one of the world’s most vulnerable countries to the effects of climate change, and its 240 million inhabitants are facing extreme weather events with increasing frequency.

Last month, at least 24 people were killed in severe storms in the South Asian nation, which experienced several extreme weather events in the spring, including strong hailstorms.

Commuters make their way through a flooded street following heavy rainfall in Hyderabad, in Sindh province on June 27, 2025. (AFP)

 


Pakistan arrests two for defrauding citizens with fake jobs in Saudi Arabia, United Kingdom

Updated 10 min 17 sec ago
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Pakistan arrests two for defrauding citizens with fake jobs in Saudi Arabia, United Kingdom

  • The suspects arrested in the Pakistani city of Multan have been accused of human smuggling
  • The Federal Investigation Agency says both men extorted money and were involved in visa fraud

KARACHI: Pakistani authorities have arrested two men accused of human smuggling after they defrauded citizens with false promises of jobs in Saudi Arabia and the United Kingdom, officials said on Saturday, as the country intensifies its crackdown on trafficking networks following a series of deadly migrant boat disasters.

The arrests, made by the Federal Investigation Agency (FIA) in Multan, come amid Pakistan’s broader campaign to curb human smuggling. The issue has drawn significant attention following recent tragedies in the Mediterranean, including shipwrecks off Greece, Libya and Morocco involving scores of Pakistani nationals.

“The accused, Muhammad Muzammil and Sher Khan, extorted large sums of money from citizens by falsely promising overseas employment opportunities,” the FIA said in a statement. “Muzammil took Rs852,000 [$2,982] from a victim under the pretense of securing a job in Saudi Arabia, while Sher Khan collected Rs2 million [$7,000] by offering fake employment in the UK,” it continued. “Both failed to deliver and went into hiding after collecting the money.”

The statement noted that the suspects were also involved in visa fraud.

Prime Minister Shehbaz Sharif has vowed to crack down on the criminal networks exploiting vulnerable people with false hopes of better lives abroad. His administration began focusing on the issue after more than 200 Pakistanis were presumed dead in a shipwreck off Greece among hundreds of other illegal migrants trying to reach European shores.

Earlier this year, over 40 Pakistanis were feared drowned near Morocco’s coast, while the International Organization for Migration said at least 60 migrants, including Pakistanis, were feared dead after a pair of shipwrecks off the coast of Libya in June.

The FIA said on Saturday that both suspects were arrested from separate locations in Multan and have been taken into custody for further investigation. It added that its crackdown on human smugglers remains ongoing.


Pakistani province probes alleged sale of UNICEF-tagged soap for anti-polio campaign

Updated 50 min 17 sec ago
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Pakistani province probes alleged sale of UNICEF-tagged soap for anti-polio campaign

  • The development comes days after officials seized over 200 UNICEF-tagged soap bars from Peshawar market
  • UNICEF’s communication specialist did not respond to multiple queries seeking a comment on the matter

PESHAWAR: Authorities in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province are probing the alleged sale of soap bars, which were provided by the United Nations Children’s Fund (UNICEF) for the country’s campaign against polio, at a market in Peshawar, officials said on Friday.

The comments came after the seizure of over 200 soap bars at the Faqeerabad market in the provincial capital, which bore the “not-for-sale” marking, according to Additional Assistant Commissioner Azimullah Mehsud.

The local administration acted on a tip-off about UNICEF-tagged soap bars being “diverted” to the open market. A preliminary investigation suggested the consignment originated in the southern Sindh province.

Authorities arrested a shopkeeper on June 25, who was selling these soap bars on Facebook and in the local market in the northwestern Pakistani city.

“According to initial investigations, he [the suspect] told us that they got this supply [of soaps] from Sindh,” Mehsud told Arab News. “The person we have arrested told us he gives this [to people] on Facebook marketplace and said, ‘I’m an Afghan national’.”

This handout photo, released by Khyber Pakhtunkhwa governor’s focal person for polio Tariq Habib, shows UNICEF-tagged soap bars allegedly recovered after a raid at the Faqeerabad market in Peshawar, Pakistan on June 25, 2025. (Handout)

Mehsud said the authorities recovered three cartons during the raid, with a total of 216 soap bars. He said the suspect claimed to have additional stock.

“Here people used to buy [a soap bar] from him at a cost of Rs40 or Rs45 and then used to change its packaging at Rs3, and then [they were] being supplied to Jalalabad, Afghanistan and here in Pakistan, I think, including D.I. Khan and many other places,” he said.

“When we contacted him, he [suspect] told us to come tomorrow and he will arrange 3,000 more [soap bars] for us. Then we told the anti-corruption to locate the link to his network.”

Arab News reached out to UNICEF’s communication specialist, Zia-ur-Rehman, but did not receive a response to its queries seeking comment on the matter.

Polio is a paralyzing disease with no cure, making prevention through vaccination critical. After a significant decline over the past decades, Pakistan witnessed an intense resurgence of the poliovirus in 2024, with 74 cases reported. According to Pakistan’s polio program, the country has reported 13 cases of the virus so far this year.

This handout photo, released by Khyber Pakhtunkhwa governor’s focal person for polio Tariq Habib, shows UNICEF-tagged soap bars allegedly recovered after a raid at the Faqeerabad market in Peshawar, Pakistan on June 25, 2025. (Handout)

The KP anti-corruption department plans to send an open letter to UNICEF and the Sindh provincial administration to further investigate the matter.

Humayun Khan, the Peshawar circle officer of the anti-corruption department, confirmed to Arab News that his department had launched an investigation into the case.

“It [investigation] will go ahead properly with a procedure,” he said. “It will take time.”


Suicide attack kills 13 soldiers in Pakistan’s northwest — officials

Updated 28 June 2025
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Suicide attack kills 13 soldiers in Pakistan’s northwest — officials

  • The attack injured 29 others, including civilians, in North Waziristan district 
  • Hafiz Gul Bahadur group of the Pakistan Taliban claimed the suicide attack

PESHAWAR: A suicide attack claimed by the Pakistani Taliban killed 13 soldiers and wounded 29 people, including civilians, local government officials and police officers told AFP.

“A suicide bomber rammed an explosive-laden vehicle into a military convoy. The blast killed 13 soldiers, injured 10 army personnel and 19 civilians,” said a local government official in North Waziristan district of Khyber Pakhtunkhwa province, who asked not to be named because he was not authorized to speak to the media.

“The explosion also caused the roofs of two houses to collapse, injuring six children,” a police officer posted in the district told AFP.

The condition of four injured soldiers is critical, an administrative official added.

The attack was claimed by the suicide bomber wing of the Hafiz Gul Bahadur armed group, a faction of the Pakistan Taliban.

Pakistan has witnessed a sharp rise in violence in its regions bordering Afghanistan since the Taliban returned to power in Kabul in 2021, with Islamabad accusing its western neighbor of allowing its soil to be used for attacks against Pakistan — a claim the Taliban deny.

Around 290 people, mostly security officials, have been killed in attacks since the start of the year by armed groups fighting the government in both Khyber Pakhtunkhwa and Balochistan, according to an AFP tally.


Rescuers search for three missing persons 24 hours after flash floods in Pakistan’s Swat

Updated 28 June 2025
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Rescuers search for three missing persons 24 hours after flash floods in Pakistan’s Swat

  • The deluges swept away 17 people, of whom 11 were killed and three were rescued
  • The ongoing wet spell has delayed arrival, departure of several trains in the country

ISLAMABAD: Rescuers are still searching for three people who were swept away by flash floods in the Swat river in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, an official said on Saturday, 24 hours after the tragic incident.

Flooding in the river swept away 17 people early Friday, of which three were rescued and bodies of 11 others were recovered, according to KP Rescue 1122 officials. The victims and survivors were tourists who reportedly hailed from Punjab and KP provinces.

The operation to find the three missing persons has been ongoing for the last 24 hours, according to Shah Fahad, director-general of the provincial rescue service.

“Rescue 1122 operation is currently underway in different areas of Swat, including Khwaza Khela, Kabal Bypass and Barikot,” Fahad said in a statement. “More than 120 personnel of Rescue 1122 are engaged in relief activities.”

Flooding in the province has also damaged 56 houses, six of which were destroyed, the KP Provincial Disaster Management Authority said on Friday.

The Pakistan Meteorological Department has warned that the risk of heavy rains and possible flash floods will remain high until at least Tuesday.

The ongoing spell of rains has also killed nearly a dozen people in the eastern Punjab province and delayed the arrival and departure of trains in Sindh province in the south.

Babar Raza, a spokesperson for Pakistan Railways, told Arab News the weather conditions had affected the railway signaling system, while the speed of trains had also been deliberately reduced for the sake of passenger safety.

“As a result, some trains are reaching their destinations with a delay of three to four hours,” he said. “No trains have been canceled so far.”

Pakistan is one of the world’s most vulnerable countries to the effects of climate change, and its 240 million inhabitants are facing extreme weather events with increasing frequency.

Last month, at least 24 people were killed in severe storms in the South Asian nation, which experienced several extreme weather events in the spring, including strong hailstorms.