ISLAMABAD: E-banking transactions grew by 12 percent in volume and 16 percent in value in the first quarter of Fiscal Year 2021-22, the Pakistani central bank said on Monday, as the country’s payment ecosystem continued to grow at a fast pace.
These transactions were conducted via electronic channels, including real-time online branches, ATMs, mobile banking, Internet banking, call center banking, Point of Sale (PoS) and e-commerce.
Two major areas where high adoption in digital payments was witnessed were mobile and Internet banking, the State Bank of Pakistan (SBP) said in its first quarterly report of payment systems, covering the period July 2021 till September 2021.
“The number of mobile banking users grew by 4 percent on quarter over quarter (QoQ) basis, reaching a total of 11.3 million. The number of transactions conducted via mobile banking channels was 79.1 million with a value of around PKR 2.2 trillion, showing a QoQ growth of 29 percent by volume and 36 percent by value,” the SBP report read.
“Internet banking also contributed to the upswing in usage of e-Banking services by registering 31 percent QoQ growth in Internet banking users who conducted 30 million transactions amounting to PKR 1.9 trillion. This amounts to 6 percent progress in terms of volume and 10 percent increase in the value of these transactions on QoQ basis.”
The retail banking sector continued to show adoption of digital payments, while overall e-commerce transactions recorded an impressive QoQ growth of 87 percent by volume and 21 percent by value, though the number of e-commerce merchants remained almost the same as of the last quarter, according to the report.
During the quarter, 12.7 million e-commerce-related transactions amounting to Rs22.3 billion were conducted using digital payment channels. Similarly, the number of merchant POS machines increased by 10 percent QoQ, reaching to 79,134 in the country. These machines processed 28.1 million card-based transactions at merchant locations, amounting to almost Rs134.9 billion, which showed QoQ increase of 16.1 percent by volume and 10.6 percent by value.
As of end-September 2021, the report said, there were 46.2 million total cards in circulation, which mainly comprised debit cards (64 percent), social welfare cards (22 percent), ATM-only cards (10 percent), credit cards (4 percent) and prepaid cards (0.3 percent).
Paper-based transactions recorded an increase of 5 percent in volume and 3 percent in value, which may be attributed to people returning to bank branches as pandemic-related restrictions were eased.
In large-value or wholesale payment segment, transactions processed through the Pakistan Real-Time Interbank Settlement Mechanism (PRISM) recorded a total of 1.1 million transactions amounting to Rs159.1 trillion, which was 7 percent higher than the preceding quarter.
Pakistan e-banking transactions grew by 12 percent in first quarter of FY2022 — central bank
https://arab.news/csgm6
Pakistan e-banking transactions grew by 12 percent in first quarter of FY2022 — central bank
- Number of mobile banking users grew by 4 percent, e-banking usage rose by 31 percent
- Overall e-commerce transactions recorded an impressive QoQ growth of 87 percent by volume
Pakistan says targeted Indian military sites, S-400 missile defense system in retaliation to attacks
Pakistan says targeted Indian military sites, S-400 missile defense system in retaliation to attacks
- The two countries have been engaged in daily clashes since Wednesday, when India launched missile strikes inside Pakistan
- The latest conflict has alarmed world powers and Secretary Rubio has offered Pakistan army chief assistance in defusing crisis
ISLAMABAD: Pakistan has targeted several Indian military sites and destroyed an S-400 missile defense system as part of ‘Operation Bunyan-un-Marsoos,’ Pakistani military sources said on Saturday, after India reportedly fired missiles on three of its air bases.
Pakistani military spokesman Lt. Gen. Ahmed Sharif Chaudhry said India targeted Nur Khan, Shorkot and Murid air bases, adding that Pakistani air defense system had intercepted a majority of missiles and the few, which had sneaked in, did not cause any damage to Pakistan Air Force assets.
The two countries have been engaged in daily clashes since Wednesday, when India launched missile strikes inside Pakistan on what it called “terrorist infrastructure” over an attack in the disputed Kashmir region. It was difficult to independently verify the claims made by both sides.
“Brahmos storage site has been taken out in general area Bias. Attacks on various other places [in India] in progress. Pathan Kot Airfield, Udhampur Airforce Station hit,” a Pakistani military source said early Saturday.
“All those air bases wherefrom Pakistan was attacked are being attacked simultaneously.”
The Nur Khan air base in Rawalpindi, where the military has its headquarters, is around 10 kilometers from the capital, Islamabad.
“Now you just wait for our response,” Chaudhry, the Pakistani military spokesman, said in televised remarks prior to Pakistan’s retaliatory attacks.
The Indian army said “multiple enemy drones were spotted flying over” a military cantonment in Amritsar in Punjab, a state adjoining India-administered Kashmir, and were “instantly engaged and destroyed by our air defense units.”
“Pakistan’s blatant escalation with drone strikes and other munitions continues along our western border,” it said on X.
Another Pakistani military source said “70 percent electricity grid of India has been made dysfunctional” through a cyberattack, a day after Pakistan’s economic affairs ministry’s X account was hacked and a post was published on it appealing to international partners for more loans.
The attack targeted websites, including those of the ruling Bharatiya Janata Party (BJP) in India, Crime Research Investigation Agency, Mahanagar Telecommunication Company Limited, Bharat Earth Movers Limited, and the All India Naval Technical Supervisory Staff Association. There was no immediate comment from New Delhi in this regard.
Tensions between the nuclear-armed neighbors escalated this week as they both accused each other of violating airspaces by sending drones and other munitions, killing at least 48 people on both sides. The latest conflict was sparked by an attack in Indian-administered Kashmir’s Pahalgam resort town that killed 26 tourists on April 22.
New Delhi blamed the attack on Pakistan, Islamabad denies it and calls for a credible, international probe into the assault.
Pakistan Prime Minister Shehbaz Sharif has called a meeting of the National Command Authority on Saturday, the military said. The top body of civilian and military officials takes security decisions, including those related to the country’s nuclear arsenal.
Pakistan and India have a history of bitter relations. They have fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.
The ongoing conflict alarmed the world powers, including China, US and the United Kingdom who all have urged restraint.
United States (US) Secretary of State Marco Rubio has spoken with Pakistani Army Chief Asim Munir and urged both parties to find ways to deescalate and “offered US assistance in starting constructive talks in order to avoid future conflicts,” the State Department said.
The Group of Seven countries on Friday urged maximum restraint from both India and Pakistan and called on them to engage in direct dialogue. The United Kingdom’s High Commissioner to Pakistan, Jane Marriott, said on X they were monitoring the developments closely.
Pakistan ports face export backlog as India’s transit ban forces shipping lines to reroute
- Shipping companies launch special feeder services via Colombo to handle cargo from Pakistan
- Some international shipper are imposing up to $800 surcharge per container amid the situation
KARACHI: Pakistan is facing a “big backlog” of export containers at its ports after international shipping lines began bypassing the country, following India’s decision to block vessels carrying Pakistani cargo, officials and shipping documents confirmed to Arab News on Friday.
The disruption has led several global shipping companies to impose emergency operational surcharges on Pakistani cargo, citing the “significant impact” of regional geopolitical tensions on their operations.
The move is expected to raise shipping costs and, ultimately, consumer prices in Pakistan, a country of over 240 million people already grappling with economic challenges.
“The European shipping services are bypassing Pakistan ports after India’s ban on the transit of ships loaded with cargoes from Pakistan,” said Syed Tahir Hussain, Secretary General of the Pakistan Ship Agents Association (PSAA).
He accused New Delhi of attempting to undermine Pakistan’s recovering economy, which has shown signs of stabilization under the International Monetary Fund’s (IMF) $7 billion loan program.
PSAA Chairman Mohammed A. Rajpar called India’s move “unwarranted” and against international conventions, saying it was designed to discourage shipping lines from calling at Pakistani ports.
The situation comes as Islamabad is attempting to break free from its boom-and-bust economic cycles by boosting exports, which rose 6 percent to $27 billion through April, according to the Pakistan Bureau of Statistics.
Until recently, many international shipping services transited Pakistani cargo through India’s largest ports — Mundra and Nhava Sheva — by loading what is termed Remaining On Board (ROB) freight.
However, India embargoed this practice last week, prompting several carriers to remove Pakistani ports from their routes and instead launch dedicated feeder services to handle trade valued at approximately $87 billion last year.
Most of Pakistan’s containerized cargo is handled through the South Asia Pakistan Terminal (SAPT) operated by CH Hutchison Holdings, Qasim International Container Terminal (QICT) run by DP World and the Karachi Gateway Terminal managed by Abu Dhabi Ports Group.
“Some vessels carrying Pakistan’s exports sailed from QICT were not allowed berthing in India,” said Hussain, whose association represents over 50 international shipping lines.
“They had to divert to Dubai and other nearby ports,” he added, without specifying when the incident occurred.
Shipping documents seen by Arab News show that at least four vessels were denied entry by Indian authorities earlier this week due to “Karachi onboard cargo.” These ships were rerouted to Colombo in Sri Lanka and Jebel Ali in the United Arab Emirates.
Swiss carrier MSC Mediterranean Shipping redirected all destination cargo via Colombo aboard its vessel MSC Positano V-JP526R, which had been scheduled to call at QICT on May 6.
This change, MSC said in a customer notice, was “due to the current geopolitical situation and restrictions on imports and exports via/from India.”
French shipping giant CMA CGM has removed Karachi from at least four of its service routes, citing the need to adjust operations to and from Pakistan.
“BIG BACKLOG” AT PORTS
Export congestion is building at Pakistani ports as hundreds of containers await shipment.
“There is big backlog,” said Khurram Mukhtar, Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA).
Textiles remain Pakistan’s largest export sector, contributing $17 billion last year.
Mukhtar noted that most shipping lines were now planning to route exports through Colombo, with system updates expected by Monday.
MSC has launched a “Pakistan-Colombo Shuttle Service,” a weekly feeder vessel that will transport export containers to Sri Lanka for onward connections to global destinations.
Amid the ongoing crisis, international shipping lines have begun imposing surcharges on Pakistani exporters and importers.
CMA CGM has introduced an Emergency Operational Recovery Surcharge (EORS) of up to $800 per container for shipments to the US, Latin America and Australia, effective from May 15 through June 6.
The French firm said the surcharge was necessary to maintain service reliability and safety during this period. CMA CGM operates more than 250 routes globally with a fleet of 650 vessels.
“Pakistan’s exports are suffering,” said a senior official at one of Pakistan’s major container terminals, speaking on condition of anonymity.
“This will lead to the buildup of a huge container backlog at Pakistani ports,” the official said. “There will be issues like port demurrages. The shipping lines will be charging the consignees with detentions.”
Pakistan vows retaliation, saying three bases targeted by Indian missiles
- Army says Nur Khan base, Murid base in Chakwal district and one in Shorkot targeted by Indian missiles
- Reports came after Chaudhry said in sudden statement India fired ballistic missiles that fell in Indian territory
ISLAMABAD: Pakistan Military Spokesperson Lt. Gen. Ahmed Sharif Chaudhry said on Saturday India had attacked multiple bases in Pakistan, vowing retaliation.
In the latest confrontation between the two longstanding enemies that began on Wednesday, India said it hit nine “terrorist infrastructure” sites in Pakistan in retaliation for what it says was a deadly Islamabad-backed attack in Indian-administered Kashmir on April 22. Pakistan says it was not involved and denied that any of the sites hit by India were militant bases. It said it shot down five Indian aircraft on Wednesday.
Pakistan’s military said on Friday it shot down 77 drones from India at multiple locations, including the two largest cities of Karachi and Lahore, and the garrison city of Rawalpindi, home to the army’s headquarters.
On Saturday early morning, panic rang out in Pakistan as reports emerged that Pakistan Air Force’s Nur Khan base had been hit.
The Nur Khan air base in Rawalpindi, where the military has its headquarters, is around 10 kilometers from the capital, Islamabad.
In televised remarks, the military spokesman said three bases, Nur Khan, PAF Base Murid, an operational flying base of the Pakistan Air Force located near the village of Murid in the Chakwal District of Punjab, and one in Shorkot, had been targeted by Indian missiles.
“Now you just wait for our response,” Chaudhry said.
The reports came after Chaudhry said India fired ballistic missiles that fell in Indian territory, announcing it in a sudden statement on national broadcaster at 1:50 a.m. local time on Saturday (2050 GMT), with no details provided to support the claim.
“I want to give you the shocking news that India fired six ballistic missiles from Adampur. One of the ballistic missiles hit in Adampur, the rest of the five missiles hit in the Indian Punjab area of Amritsar,” the army’s spokesman said in his short video statement.
Amritsar’s district commissioner in a text message between Friday and Saturday said:
“Don’t panic. Siren is sounding as we are under red alert. Do not panic, as before, keep lights off, move away from windows. We will inform you when ready to resume power supply.”
Around 48 people have been killed since Wednesday’s conflagration, according to casualty estimates on both sides of the border that have not been independently verified.
Pakistan military says it will not let India set precedent for cross-border strikes
- Military spokesperson says Pakistan has ‘every right to protect its honor, integrity and sovereignty’
- He says India has been equipping people against Pakistan while running ‘terrorist’ training camps
ISLAMABAD: Pakistan’s military said on Friday it would not allow India to “set a new norm” where it could carry out cross-border strikes at will, vowing to defend the country’s sovereignty and respond at a time and place of its choosing.
The two South Asian nuclear rivals have been on the brink of a full-scale war since India carried out strikes on multiple locations in Pakistan on Wednesday, in response to a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead. New Delhi blamed Islamabad for the attack, a charge Pakistan has denied.
In the days since, Pakistan has claimed to have downed five Indian fighter jets and over 75 drones, while India said it had retaliated against Pakistani air and drone assaults by destroying an air defense system in Lahore.
Global powers have urged both sides to exercise restraint, but tensions remain high.
“They want to set a new norm that at their convenience, whenever they feel like it, they will go cross-border, cross-international, and hit wherever they like,” Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry said in a briefing to foreign media.
“What do you think of Pakistan — that we will allow all this to happen after clearly saying we have every right to protect the honor, integrity and sovereignty of our people?”
He added that Pakistan would respond “at the time, place and method of our choosing.”
During the briefing, Chaudhry displayed images of children killed in Indian strikes and asked journalists to keep them in mind.
“Please remember these pictures when you talk about what’s happening on the ground and when you ask us what Pakistan is going to do,” he said.
Accusing India of sponsoring “terrorism,” Chaudhry alleged that Indian agencies were operating training camps inside their country and directing armed groups to increase attacks on Pakistani soil.
“They have networks of people whom they train and equip with weapons,” he said. “Instructions have been issued to terrorist groups to ramp up activities against Pakistan.”
India and Pakistan have fought multiple wars, but this is the most serious escalation since both countries became declared nuclear powers in May 1998.
The disputed Himalayan region of Kashmir, which both sides claim in full but control in part, has long been a flashpoint and the cause of repeated military skirmishes.
PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal
- The prime minister expresses satisfaction India’s ‘efforts to sabotage’ the loan program had failed
- He says Pakistan’s economic situation is improving and it is moving toward financial progress
KARACHI: The International Monetary Fund (IMF) approved a $1 billion disbursement for Pakistan under a loan program secured by the government last year, Prime Minister Shehbaz Sharif said in an official statement late Friday.
The announcement followed an IMF Executive Board meeting to finalize staff-level agreements related to the $1 billion payout, as well as Pakistan’s new $1.3 billion arrangement under a climate resilience facility approved in March.
The meeting took place at a time when Pakistan is working to revive investment amid a gradually stabilizing macroeconomic environment, following a prolonged downturn that compelled it to seek external financing from allies and global lenders.
“Prime Minister Shehbaz Sharif expressed satisfaction over the IMF’s approval of the $1 billion tranche for Pakistan and the failure of India’s underhanded tactics against the country,” his office said in a statement issued after the board’s decision.
Media reports said recently India had attempted to pressure the IMF to block the disbursement, citing heightened military tensions between the two neighbors following a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead.
New Delhi blamed Islamabad for the assault, an allegation Pakistani officials repeatedly denied.
Sharif said international financial institutions had “responsibly rejected” India’s narrative and reaffirmed their trust in Pakistan’s economic strategy.
“Indian efforts to sabotage the IMF program have failed,” he said, adding the disbursement would help stabilize the economy and steer it toward long-term recovery.
He praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and other members of the government’s economic team for their role in securing the funds.
Pakistan has been working to broaden its tax base, improve energy sector efficiency, and unlock private sector growth as part of its reform commitments under the $7 billion IMF loan program.
“By the grace of God, the country’s economic situation is improving, and Pakistan is moving toward progress,” Sharif said. “The government remains committed to tax reforms, energy sector improvements and private sector development.”
He reiterated that Pakistan would stay the course on economic stabilization, effective performance and long-term planning.
The IMF funding approval comes at a critical time for Pakistan, as it seeks to reassure global investors and shore up foreign exchange reserves amid geopolitical instability and upcoming budget negotiations.
