Current Final

Category: Business

  • Mobile banking grows by 100% during FY22 in Pakistan

    Mobile banking grows by 100% during FY22 in Pakistan

    According to the State Bank of Pakistan’s (SBP) Annual Payment Systems Review, the size of the digital payments ecosystem witnessed massive increase over the previous fiscal year. The report reveals that internet banking expanded by 51.7 per cent to 141.7 million users in FY22, while mobile phone banking increased by 100.4 per cent to 387.5 million.

    There were 15 million P2P (Person-to-Person) Raast users registered, who carried out 7.9 million transactions worth Rs102.1 billion.

    The report also notes that during FY22, there were 8.4 million and 12.3 million users of mobile phones and internet banking, respectively.

    In terms of transactions, mobile phone banking increased by 100.4 per cent to 387.5m, while internet banking grew by 51.7 per cent to 141.7m during the year.

    In 2021–2022, internet banking transactions had a value of Rs10.2 trillion, increasing 81.1 per cent. The volume of e-commerce transactions increased by 107.4 per cent to 45.5 million, and the value increased by 74.9 per cent to Rs106 billion.

    A total of 32,958 point-of-sale devices were installed during FY22, which caused the network to grow by 45.8 per cent to 104,865. The number of online retailers registered with the banks increased over this time from 3,003 to 4,887. The nation’s ATM network expanded by 4.8 per cent during the course of the year, totaling 17,133 machines.

  • Meta to settle Cambridge Analytica scandal case for $725 million

    Meta to settle Cambridge Analytica scandal case for $725 million

    Facebook parent Meta has agreed to pay $725 million to settle a lawsuit that accused the social media giant of allowing third parties to access users’ private data. The amount was disclosed in a court filing late on Thursday.

    “The proposed settlement of $725,000,000 is the largest recovery ever achieved in a data privacy class action and the most Facebook has ever paid to resolve a private class action,” lawyers for the plaintiffs said in the filing.

    As part of the settlement, Facebook has not admitted any wrongdoing, which must still be approved by a judge in the US District Court for the District of Columbia’s San Francisco division.

    In August, it was reported that Facebook had struck a preliminary agreement, though the sum and specifics of the settlement were not disclosed at the time.

    In 2018, Facebook users accused the social network of breaking privacy guidelines by sharing their data with third parties, including the British business Cambridge Analytica, which was tied to Donald Trump’s 2016 presidential campaign.

    According to the lawsuit, Cambridge Analytica, which has since shut down, then gathered and abused the personal data of 87 million Facebook users without their knowledge.

    This information was allegedly utilised to create software to sway US voters in Trump’s favour.

    Since then, Facebook has banned access to its data from thousands of apps suspected of abusing it, limited the amount of information available to developers, and made it easier for users to calibrate personal data sharing settings.

    In 2019, the federal government penalised Facebook $5 billion for deceiving its users and mandated independent control of its personal data handling.

  • SBP-held foreign exchange reserves drop to 8-year low

    SBP-held foreign exchange reserves drop to 8-year low

    The foreign exchange reserves held by the State Bank of Pakistan (SBP) continued their declining spree, plunging by $584 million to reach $6.1 billion as of December 16.

    According to SBP, this is the lowest level of reserves since April 2014.

    SBP’s reserves have decreased by $11.6 billion over the past 12 months. The central bank’s reserves, which were $17.7 billion in December 2021 and are now at $6.1 billion, hardly cover a month’s worth of imports.

    Pakistan’s total liquid foreign reserves are currently $12 billion, with $5.9 billion of that amount held by commercial banks as net foreign reserves.

    The lack of foreign assistance along with a delay in the IMF program’s revival, a greater trade imbalance, and rising foreign debt payments severely depleted the reserves.

    The Fund’s criticism over an elevated budget deficit is said to be the reason why the ninth review discussions have been postponed.

    While the IMF urges that the government must stabilize the economy, the government seems unwilling to levy more taxes in order to raise income.

  • S&P Global lowers Pakistan’s credit rating to CCC+

    S&P Global lowers Pakistan’s credit rating to CCC+

    Pakistan’s long-term sovereign credit rating was downgraded by S&P Global from “B” to “CCC+” to reflect the continuous deterioration of the country’s external, fiscal, and economic metrics.

    According to S&P, Pakistan’s already meagre foreign exchange reserves would continue to be under pressure through 2023 without a drop in oil prices or an improvement in international aid. The nation also faces significant political risks that could alter its future course of policies.

    According to the report, Pakistan’s economic and fiscal results are predicted to be negatively impacted by this year’s devastating floods, skyrocketing food and energy prices, and rising global interest rates, with refinancing issues over the medium term.

    The agency maintained its outlook at “stable”.

    With barely enough reserves to pay one month’s worth of imports, a dollar shortage, and a delay in its loan programme with the International Monetary Fund, Pakistan is in the midst of an economic catastrophe. Despite the payment of a $1 billion bond this month, long-term dollar bonds continue to trade at distressed prices, reflecting investors’ lack of confidence in Pakistan’s capacity to meet its international debt commitments.

    Following the terrible floods that hit the country earlier this year, Moody’s lowered Pakistan’s sovereign credit rating by one notch, from B3 to Caa1, citing heightened government liquidity and external vulnerability risks.

  • Pakistan’s GDP growth expected to remain below 3–4% in FY23: SBP

    Pakistan’s GDP growth expected to remain below 3–4% in FY23: SBP

    In its annual economic health report released on Wednesday, the State Bank of Pakistan (SBP) slashed its predicted GDP growth from the previously disclosed range of 3–4 per cent for the current fiscal year, citing flood-induced destruction and the stabilisation policy as important contributors.

    However, the central bank stated that economic growth was stronger than anticipated in the 2021–22 fiscal year as real GDP increased by 6 per cent compared to 5.7 per cent a year earlier in its Annual Report on the State of Pakistan’s Economy, which mainly covered the previous fiscal year that ended on June 30.

    According to Geo, the GDP grew by 6 per cent in the previous fiscal year. In its monetary policy announcement from October, the SBP already reduced the economic growth to around 2 per cent.

    According to the research, increased agricultural output and a broad-based expansion of large-scale manufacturing (LSM) were the main forces behind this gain.

    Macroeconomic imbalances returned during FY22 as a result of a combination of unfavourable global and domestic circumstances.

    When widespread flooding struck a significant portion of the nation at the beginning of the current fiscal year, the SBP claimed that the economy was in the middle of a stabilisation phase.

    According to the report, the flooding was predicted to have an impact on the nation’s real economic activity through a number of channels. It was feared that losses in agriculture resulting from the destruction of crops and livestock would spread to the rest of the economy through a number of backward and forward links.

    According to the bank, the extensive devastation of infrastructure in the afflicted provinces might also harm the nation’s chances for growth this year.

    Due to the deteriorating economic climate, the SBP avoided stating a range for the growth rate of the current fiscal year. Due to the high rate of inflation and the scarcity of gas and electricity, industries have either stopped operating entirely or substantially reduced their production.

    The SBP’s restriction on the opening of letters of credit (LCs) for imports in an effort to save money is a significant contributing factor.

    In the event that the gas supply is not restored and no LCs are opened, the All-Pakistan Textile Mills Association has warned to declare layoffs within days.

    According to the textile industry, up to 500,000 people who were either directly or indirectly employed by the business have lost their jobs. However, there are no official statistics in this regard.

  • Gold price hits new all-time high of Rs178,800 per tola

    Gold price hits new all-time high of Rs178,800 per tola

    One-tola and 10-gramme rates for domestic gold reached record highs of Rs178,800 and Rs153,292 on Tuesday after increasing by Rs3,900 and Rs3,344 respectively.

    The price of the yellow metal on the global market increased by $12, according to the All Sindh Sarafa Jewellers Association (ASSJA), and surged to $1,808 as a result.

    Gold prices have increased by Rs52,800 per tola and Rs45,096 per 10-gramme since January 1 when prices stood at Rs126,200 and Rs108,196 respectively.

    Vice President of ASSJA Junaid Samiwala claimed that the lack of pure gold on the market was to blame for the price increase. “Big groups are investing black money in gold for good profits.”

    He asked Ishaq Dar, the finance minister, to start an operation on individuals who are stockpiling the yellow metal.

    “Gold prices have reached this point today because of speculators. Ideally, as per the dollar rate, gold rates in Pakistan should be Rs152,000 per tola,” Samiwala said, calling for strict action against “groups” controlling the rates.

    Furthermore, the price of silver per tola increased by Rs20 to reach Rs2,050. 10-gramme silver costs increased by Rs25.72 to Rs1,757.54.

  • Elon Musk will step down as Twitter CEO once he finds a ‘foolish enough’ replacement

    Elon Musk will step down as Twitter CEO once he finds a ‘foolish enough’ replacement

    The billionaire Elon Musk announced on Tuesday that he will step down as Twitter’s CEO once he finds a replacement, although he will continue to oversee some crucial departments of the social media network.

    “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams,” Musk wrote on Twitter.

    Some investors have questioned if Musk is too preoccupied to properly operate his electric vehicle automaker Tesla, in which he is actively involved in production and engineering. Musk’s $44 billion buyout of Twitter in October has been defined by upheaval and controversy.

    After Twitter users chose for him to stand down in a poll that the billionaire started on Sunday night, Musk has now publicly acknowledged leaving his position as the social media platform’s CEO for the first time.

    17.5 million individuals participated in the poll, and 57.5 per cent of them chose “yes.” Musk declared on Sunday that he will follow the outcomes. He has not specified a date for his resignation, and no replacement has been named.

    The survey findings brought to a close a hectic week that saw modifications to Twitter’s privacy policy and the suspension and reactivation of journalist accounts, all of which garnered criticism from news outlets, advocacy groups, and government officials across Europe.

    Musk stated in a Twitter Spaces session that Twitter’s cash flow will achieve break-even in 2023, according to a tweet from Bloomberg on Wednesday.

    Bloomberg claimed that Musk explained the forecast as a result of recent cost-cutting initiatives he has implemented on the social media site.

    Wall Street has been calling on Musk to leave for weeks, and more recently even Tesla supporters have questioned his focus on social media and whether it would be a distraction from operating the EV manufacturer.

    Musk has acknowledged that he has too much on his plate and that he will search for a new CEO of Twitter. But he claimed on Sunday that there was no one in place to take his place and that “no one wants the job who can actually keep Twitter alive.”

  • World Bank approves $1.69 billion financing for flood-hit Sindh

    World Bank approves $1.69 billion financing for flood-hit Sindh

    The Board of Executive Directors of the World Bank approved funding for five projects totaling $1.692 billion on Tuesday in order to support those residing in Sindh, Pakistan’s flood-affected areas.

    According to Geo, out of the five initiatives, three support rehabilitation, home reconstruction, and the restoration of crop production for vulnerable populations, according to a statement released by the World Bank. Two of the three projects have a combined value of $500 million, while the third is worth $292 million.

    “Sindh was the province worst affected by the 2022 floods. There were huge damages to the housing, health, and agriculture sectors and people lost their livelihoods. Beyond the rehabilitation and reconstruction of damaged houses and infrastructure, our engagement in the flood response effort is an opportunity to strengthen resilience, and reform institutions and governance structures”, said Najy Benhassine, World Bank Country Director for Pakistan.

    The “Sindh Flood Emergency Rehabilitation Project,” which will cost $500 million, will prioritize creating short-term livelihood opportunities and enhancing the province’s ability to respond to emergencies.

    “The project will help restore and improve critical irrigation and flood protection infrastructure, water supply schemes, roads, and related infrastructure. At least 2 million people—approximately 50 per cent of whom are women—in the most flood-affected districts will benefit from the restoration and the resilient reconstruction of critical infrastructure”.

    About 100,000 households will get short-term financial support through a community-level cash-for-work program.

    “The $500 million Sindh Floods Emergency Housing Reconstruction Project will support owner-driven and multi-hazard resilient reconstruction of core housing units. A housing subsidy will provide reconstruction and restoration grants for 350,000 housing units (almost 20 per cent of the total housing rehabilitation needs for Sindh). Cash grants will be provided for houses with structural damage to partially finance reconstruction or restoration. “

    To increase access to water and sanitation, twin pit latrines and simple rainwater collection systems will also be provided.

    Furthermore, the $292 million approved for the “Sindh Water and Agriculture Transformation Project” will enhance integrated water resource management, boost agricultural water productivity, and enable farmers who were impacted by the flood to resume crop production.

    “More than 385,000 households (approximately 1.9 million people) are expected to benefit from the project. As an immediate response to the floods, the project will provide cash transfers to approximately 300,000 flood-affected farming households to help restore crop production through the purchase of seeds, fertilizer, and other critical inputs. In the medium term around 70,000 households will benefit from improved irrigation services and agricultural support that will help boost farming income. An estimated 14,000 households will receive direct financial benefits from the pilot smart subsidy schemes targeting small- and medium-sized farmers,” the WB said.

    By improving access to and use of mother and child health services, the Sindh Strengthening Social Protection Delivery System Project ($200 million) will also boost the province’s social protection delivery system. As part of the project, the Federal National Database Registration Authority will be aligned and connected, and conditional cash transfers (CCTs) will be given to 1.3 million mothers and their kids to support better maternal and child health outcomes, particularly in the wake of service disruption caused by the floods.

    The CCTs will be made available to Sindh’s bottom 15 districts, selected depending on the Multidimensional Poverty Index (MPI), and will cover 65 per cent of the province’s total flood-affected areas. They are intended to help lessen the effects of the floods, particularly food insecurity, and to maintain access to maternal and child health services open.

    The Sindh Integrated Health and Population Project have been granted $200 million by the lender. The project will assist in raising the standard and uptake of fundamental nutrition, and maternal, neonatal, child, and adolescent health care. Additionally, it will aid in the repair and reconstruction of health infrastructure that was harmed during the floods and impeded the provision of these services.

    The initiative would enhance the population’s access to high-quality healthcare services in Sindh’s flood-affected settlements as well as in distant and peri-urban areas, particularly for women, girls, and children.

    “The World Bank will continue to support the Government and people of Pakistan to recover from the recent flood emergency and strengthen long-term resilience to such climate-related shocks,” the statement concluded.

  • Pakistan stocks lose more than 1,400 points due to political uncertainty

    Pakistan stocks lose more than 1,400 points due to political uncertainty

    Political unrest caused significant selling pressure on the Pakistan Stock Exchange (PSX), which saw the benchmark KSE-100 Index lose more than 1,400 points on Tuesday during trading.

    The KSE-100 Index was down 1,432.25 points, or 3.5 per cent, at 39,538.57 around 3 o’clock, below the 40,000-mark, according to the PSX website.

    Investors were under pressure to sell their shares across the board due to Pakistan’s escalating political unpredictability and economic uncertainties.

    For a while now, there has been pressure on the market. Just last week, the benchmark KSE-100 Index dropped nearly 550 points due to domestic and global events, and the PSX experienced intense selling pressure. On Friday, it increased to close higher, but this week started off negatively once more.

    Experts claim that market pressure is resulting from the Pakistan Tehreek-e-(PTI) Insaf’s announcement that it will dissolve the Punjab and Khyber Pakhtunkhwa assemblies, according to Brecorder.

    In particular, the pressure has intensified since Monday’s event.

    A worsening economic crisis is accompanied by louder political clamour as foreign exchange reserves drop to dangerously low levels and negotiations with the International Monetary Fund (IMF) keep getting postponed.

    Analysts have also stated that although the World Bank’s approval of $1.692 billion for flood relief efforts in Sindh should have had a positive effect, political commotion is also obscuring this good news.

    Pakistan’s stock market is expected to remain under pressure till Friday until clarity is achieved on the political front.

  • Govt to buy more than 500 hybrid buses for Lahore

    Govt to buy more than 500 hybrid buses for Lahore

    According to Chief Minister Chaudhry Parvez Elahi, 300 hybrid buses would be bought for Lahore in the first phase of the government’s plan to run environment-friendly hybrid buses in the city.

    About 200 new bus stops would be set up to facilitate the citizens, according to the chief minister. The 20th meeting of the Punjab Masstransit Authority (PMA), which was presided over by Parvez Elahi, decided to purchase hybrid buses that are environmentally friendly.

    Parvez Elahi informed the participants that a total of 513 hybrid buses would be operating in the city and that the Punjab Masstransit Authority would use private companies to run new hybrid buses.

    The chief minister mandated that seats be set aside in the new buses for women, special individuals with disabilities, and people who are blind or visually impaired, adding that these seats should be positioned close to the bus door. The chief minister gave the go-ahead to build new bus stops in Lahore and added that the routes of the new buses should be planned with women’s educational institutions’ schedules in mind.

    Parvez Elahi criticised the fact that previous attempts at creating a government-level transportation system spectacularly failed due to egregious incompetence in the creation of a long-lasting transportation system in the province.

    The chief minister gave his approval for the Punjab Masstransit Authority to open offices in Dera Gujran and for the authority to conduct auctions. Iftikhar Gondal, Khadija Umar, Shamim Aftab, Muhammad Khan Bhatti’s principal secretary, the secretaries of finance and transportation, along with other members of the Punjab Assembly, attended the meeting.