Top Pakistani officials arrive in London on ‘mission’ to unlock new investment channels

KARACHI: Pakistanis spent more than 4.7 billion rupees (approximately $16.3 million) on sacrificial animals through digital transactions during Eid-ul-Azha this year, the State Bank of Pakistan (SBP) said on Tuesday, highlighting a growing shift toward cashless commerce in one of the country’s most traditional and informal markets.

The digital sales were part of the central bank’s “Go Cashless in Cattle Markets Campaign 2025,” launched to promote financial inclusion and reduce cash handling during the three-day religious festival that began on June 7. The annual holiday, also known as Eid Al-Adha, marks the Islamic ritual of animal sacrifice, during which millions of Pakistanis buy goats, cows, and camels, often in large, informal marketplaces.

The SBP said the campaign was implemented in collaboration with 24 commercial banks and covered 54 major cattle markets across the country.

“The campaign was successfully implemented in 54 major cattle markets across Pakistan, resulting in 64,553 transactions valued at Rs 4.656 billion,” the central bank said in a statement.

Eid-related animal trade represents a significant part of Pakistan’s informal economy. By introducing digital payment options in livestock markets, the central bank aims to improve financial transparency and support the government’s broader goal of documenting the cash-based economy.

Pakistan is currently under a $7 billion loan program with the International Monetary Fund (IMF), which encourages reforms including digitization of financial services to boost tax collection and economic stability.

“Digital payment systems play a vital role in modern economies by offering transparency, reducing fraud risks, and providing secure, convenient, and inclusive access to financial services,” the SBP said.

It added that such initiatives were crucial for building trust and driving adoption of digital platforms, especially among underserved groups like livestock traders.

The central bank said feedback from buyers and sellers in the cattle markets was positive, with participants appreciating the reduced reliance on physical cash.

“This campaign was highly appreciated by the buyers and sellers in the cattle markets, as it reduced their reliance on cash,” the bank noted.

Najeeb Ahmed Warsi, head of online trading at Foundation Securities Ltd, called the initiative a meaningful step toward modernizing Pakistan’s financial landscape.

“This campaign is more than just numbers, it’s a clear step forward in Pakistan’s journey toward a digitally-driven, cashless economy,” he said. “By digitizing traditional markets, we’re building trust, increasing financial inclusion, and setting the stage for a safer, smarter financial ecosystem.”

Warsi noted that the partnership between 24 commercial banks and the central bank allowed the initiative to scale effectively across the country.

“This groundbreaking initiative earned widespread praise from both buyers and sellers, who welcomed the shift from cash to digital payments, and transparency during one of the busiest market seasons,” he added.

The SBP said it would continue fostering collaborations across the financial sector to further Pakistan’s transition to a digitally inclusive economy.

ISLAMABAD: Pakistan will shut down the state-owned Utility Stores Corporation (USC) by July 31 as part of a broader government effort to restructure and privatize loss-making public sector entities, according to a statement from the finance ministry carried by state broadcaster Radio Pakistan on Wednesday.

The decision follows years of declining performance, mismanagement allegations, and heavy financial losses at the USC, a nationwide retail chain originally established in 1971 to provide essential commodities at subsidized prices to low-income households. The stores were once a key instrument in the government’s food security and price control policies but have faced mounting criticism over inefficiency, politicized staffing and weak oversight.

A high-level committee formed by Prime Minister Shehbaz Sharif to oversee the closure and privatization of the USC met on Wednesday in Islamabad, with Finance Minister Muhammad Aurangzeb chairing the session.

The committee is responsible for ensuring a transparent shutdown process, designing a fair Voluntary Separation Scheme (VSS) for USC employees and recommending a timeline for privatization or asset disposal.

“All operations of Utility Stores Corporation will be closed by 31st of this month in accordance with the government's directives,” the Radio Pakistan report said.

The committee “discussed at length the formulation of a fair and financially viable Voluntary Separation Scheme for the Utility Stores employees” and examined various aspects including its potential size, fiscal impact, and legal implications.

To support the analysis, a sub-committee led by the secretary of the Establishment Division has been formed and will submit recommendations on the structure and feasibility of the VSS by the end of the week.

The committee also advised that the government’s Privatization Commission be consulted on whether the USC's assets should be sold off or restructured for privatization.

The closure of the USC marks a significant step in Pakistan’s ongoing efforts to reduce the burden of state-owned enterprises on the national budget in line with reforms encouraged by the International Monetary Fund. Over the years, several audits and parliamentary reviews have pointed to chronic inefficiencies at the USC, including procurement irregularities and an inability to meet its mandate effectively in remote and underserved areas.