Current Final

Category: Business

  • Remittances rise to record single month high of $2.77 billion in Pakistan

    Remittances rise to record single month high of $2.77 billion in Pakistan

    Remittances rose to $2.77 billion in July, which is the highest ever level of remittances in a single month in Pakistan, according to data released by the State Bank of Pakistan (SBP) on Monday.

    That represents a year-on-year growth of 36.5pc when compared with July 2019, and 12.2pc when compared to June 2020. Last month, remittances were recorded at $2.47 billion, which the SBP had dubbed as ‘historic’ at the time.

    Most of the remittances in July were received from Saudi Arabia, at $821.6 million; followed by UAE, at $538.2 million; UK, at $393.9 million; and the US, at $250.6 million.

    The central bank also noted that the growth rate in remittances compared to the same month in the previous year is around twice as high as the Eid-ul-Adha related seasonality typically experienced over the last decade.

    “Given the impact of COVID-19 globally, this increase in worker’s remittances is encouraging,” the SBP said.

    Overall, there are two main factors that explain the rise in remittances, along with some minor reasons.

    The first is that it seems the use of official channels to send remittances has increased, and there has been a decline in traditional hawala and hundi methods of sending cash home.

  • Power plants installed during PML-N’s tenure helped end power crisis, says Razak Dawood

    Abdul Razaq Dawood, advisor to Prime Minister (PM) for Commerce, Textile, Industry, Production and Investment gave credit to former prime minister (PM) Nawaz Sharif for ending power crisis in the country.

    He said that the power plants that had been set up during PML-N’s previous tenure under the China-Pakistan Economic Corridor (CPEC) have reduced power shortage.

    The adviser said that work on CPEC is going on in full swing adding that CPEC remains one of the top priorities of the Pakistan Tehreek-e-Insaf (PTI) government.

    He said that the next phase of CPEC will focus on the development of industries and agriculture in the country.

    “The IPPs which were set up under the 2002 Power Policy has now agreed to alter their existing contractual agreements and to ink new power purchase agreements,” says media reports.

    Earlier on Friday, to bring down the cost of electricity production and reduce circular debt, Prime Minister (PM) Imran Khan has signed a new agreement with the independent power producers (IPPs). A memorandum of understanding (MoU) containing 13 points was signed between the two parties.

    “I congratulate the nation because we are fixing the damaged structure we inherited in our power sector.”
    said Dawood.

    The prime minister promised that he would soon introduce a package that will focus on improving the distribution system by tackling line losses and theft.

    According to the MoU, the two parties have, in the larger national interest, voluntarily agreed to provide concessions.

    It was agreed that all projects will convert their contracts to a take-and-pay basis and until then, the existing take-or-pay will continue.

  • You can now join CPEC as an intern, here’s how

    China-Pakistan Economic Corridor (CPEC) Authority Chairperson Lt Gen (r) Asim Saleem Bajwa has announced the launch of a three-month internship aimed at human and social development.

    In a series of tweets, Bajwa said in the spirit of youth empowerment, CPEC has offered the youth an opportunity to develop skills and experiences that would allow the country to grow and prosper in the future.

    With 60 per cent of the population falling under the youth category, a tremendous opportunity exists to develop young leaders with maximum productivity vis-à-vis other regional economies, he said.

    The initiative has been well-received by Twitterati.

  • Microsoft to buy TikTok before September 15

    On Sunday, Microsoft said they are “prepared to explore a purchase of TikTok in the United States”.

    This is for the first time that Microsoft has confirmed they are in talks with ByteDance, the parent company of TikTok, for the acquisition of the video-sharing platform.

    Microsoft has provided notice of their intent to purchase TikTok service in the countries like the US, Canada, Australia, and New Zealand, which would result in Microsoft owning and operating TikTok services in these markets.

    It is not clear how Microsoft would divide market territories from other areas where TikTok operates, like Europe and Africa.

    The blog post describes the discussions as “preliminary” but addresses privacy concerns, it said the company would “ensure that all private data of TikTok’s American users are transferred to and remains in the United States.

    “To the extent that any such data is currently stored or backed-up outside the United States,” the post continues, “Microsoft would ensure that this data is deleted from servers outside the country after it is transferred.”

    The recent development came after a conversation between Microsoft CEO Satya Nadella and President Donald Trump.

    “Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok after the complete security review and providing proper economic benefits to the United States, including the United States Treasury,” says Microsoft.

    The statement further says, “Microsoft wants to acquire TikTok in a matter of weeks, probably before September 15, 2020.”

    Microsoft will not purchase the platform entirely on its own investment but will ask investors to participate in the purchase of the platform.

  • KP govt to provide Rs77m relief package to tourism industry

    KP govt to provide Rs77m relief package to tourism industry

    The Khyber Pakhtunkhwa (KP) government will not charge registration and licences fees in order to give a relief package of Rs77 million to the tourism industry.

    According to reports, the KP Tourism Department has waived off registration fees for hotels and restaurants and license fees for travel agencies and tour operators for one year.

    The decision is made due to the adverse economic impact of coronavirus on KP’s tourism industry.

    The statement was issued by the KP Tourism Department after the decision was taken during a meeting of the provincial cabinet on July 21.

    Businesses, hotels and restaurants that are not registered or they are new in the industry will also be exempted from paying license fees for one year.

    Due to the coronavirus and ban on tourism has caused lose of Rs 12 billion to tourism industry.

    For now, the KP government has banned tourist activities in the province until further notice. The decision has been taken in light of the instructions of the Department of Rehabilitation and Resettlement (R&R) to contain the spread of coronavirus.

    Similarly, restaurants, rest houses and other tourist spots will also remain closed while seminars, conferences, sports and tourism activities in hotels will also be banned.

    The provincial government has handed over 168 rest houses in KP to the Tourism Department intending to promote tourism in the province.

    Out of the 168 rest houses, 55 were previously under the Communication and Works Department, 20 were under the Irrigation Department, 21 were under the local government, two were under Police and 70 were under the Forest Department.

    The orders for the restoration of these rest houses were issued by the provincial government and after conducting a survey, all the rest houses have now been handed over to the Tourism and Sports Department.

  • Government to reopen tourism after eid

    Government to reopen tourism after eid

    The National Tourism Coordination Board (NTCB) will submit a proposal for the reopening of tourism to the National Command and Operation Centre (NCOC) after Eidul Azha holidays.

    According to media reports, a consultative meeting in this regard was held with all provincial and regional governments to discuss the appropriate time.

    Adviser to Punjab Chief Minister (CM) on Tourism Asif Mehmood, Pakistan Tourism Development Corporation (PTDC) Managing Director Syed Intikhab Alam and NTCB and PTDC board member Aftabur Rehman Rana were among those present on the occasion.

    The participants discussed various options on reopening but collectively agreed that any decision on this matter should be taken by the NCOC after monitoring and evaluating the pandemic situation.

    Matters regarding safety and preparedness were discussed and the regional governments informed the NTCB chairman that tourism-related guidelines for operators, hotels, restaurants and tourist places were ready to operate.

    The officials on both sides believed that the time was right for the tourism sector to restart as the COVID-19 curve had started flattening across the country.

    The provincial and regional heads of tourism were told that necessary preparations and awareness should be undertaken so that opening of controlled tourism under standard operating procedures (SOPs) could be made possible after the final decision of NCOC.

    Special Assistant to Prime Minister (SAPM) Sayed Zulfi Abbas Bukhari appreciated the support extended by the Khyber Pakhtunkhwa (KP) government to tourism businesses in terms of renewal of licences and registration fees.

    He urged other provincial governments to consider similar support initiatives for tourism businesses that had suffered during the prevailing situation.

  • VISA, NayaPay Partner to revolutionise digital payment system in Pakistan

    VISA, NayaPay Partner to revolutionise digital payment system in Pakistan

    NayaPay, an Electronic Money Institution (EMI), has collaborated with Visa, a leading global payment solution. Now they have access to Visa’s growing partner and global payments network, technology, and resources to accelerate innovation in digital payments in Pakistan.

    NayaPay will enable users to open electronic (E)-Money accounts within a few minutes and make hassle-free digital payments to each other and to businesses.

    NayaPay consumers and merchants can use their NayaPay Visa debit card to perform online and in-store transactions with millions of retailers worldwide as well as withdraw cash conveniently at any ATM location.

    NayaPay customers can also scan Visa merchant QR codes to make payments directly through their app.

    NayaPay will also facilitate cross-border money transfers for freelancers and other Pakistan-based businesses working with international clients, and households receiving remittances from their families abroad.

    Users will be able to accept funds instantly and directly into their NayaPay wallets from over a billion Visa cards across the globe.

    Danish Lakhani, CEO NayaPay, said: “We are delighted to have found a partner in Visa that shares our goals of making financial services simpler, more convenient and accessible to Pakistani users – the needs of whom have been overlooked for far too long. Over the past few months, we have been integrating Visa’s offerings to reinforce our issuing and acquiring capabilities and to deliver on our promise of becoming a part of citizens’ daily lives.”

    “We are committed to helping fintech achieve their potential – enabling big ideas to flourish and supporting them through the reach, scale, and security of the Visa network,” said Kamil Khan, Country Manager, Pakistan, Visa.

    “By joining Visa’s Fintech Fast Track program, exciting fintech like NayaPay gain unprecedented access to Visa experts, technology, and resources,” said Otto Williams, Vice President, Strategic Partnerships, Fintech and Ventures, CEMEA at Visa.

  • ‘Multinationals may move factories from China to Pakistan’

    The confrontation between China and the United States (US) will likely persist for the coming years. The Chinese and global manufacturers may move their factories from to Pakistan, said a renowned Canadian advisory firm BCA Research in its latest report.

    Pakistan is anxiously expecting the benefits of relocating the Chinese industry to Pakistan, which will help increase exports. China had also expressed its willingness to relocate its industrial units to Pakistan last year.

    According to the commerce and trade advisor Abdul Razak Dawood, “Pakistan has experienced significant improvement in 10 critical areas of regulation, and has improved its position from 136 to 108 in the Ease of Doing Business Index (EODB) rank last year. It shows the government’s commitment to improving the business environment.”

    According to the BCA research firm, Pakistan will receive large financial inflows this year, 2020, probably more than $12 billion from multilateral and bilateral sources.

    The research firm also stated that there will be more than enough for Pakistan to finance its current account deficit, which was at $11 billion over the past 12 months.

    In April, the International Monetary Fund (IMF) approved the payment of about $1.4 billion to Pakistan to address the economic impact of the COVID-19 shock. The World Bank (WB) and the Asian Development Bank (ADB) have also pledged around $2.5 billion in assistance.

    In April, G20 countries also awarded Pakistan a suspension of debt service payments, valued at $1.8 billion, which will be used to pay for Pakistan’s welfare programs.

    In early July, the State Bank of Pakistan (SBP) received a $1 billion loan disbursement from China. This came after Beijing awarded Pakistan a $300 million loan last month.

    The authorities plan to raise $1.5 billion through the issuance of Eurobonds over the next 12 months, said the report.

  • Pakistan’s IT exports surge to $1.2 billion in FY2019-20

    Pakistan’s Information Technology (IT) and IT-enabled Services (ITeS) export remittances have surged by 23.71% ($1.230 billion) in financial year (FY) 2019-2020.

    The numbers were revealed in a performance report released by the Pakistan Software Export Board (PSEB) on Friday.

    According to FY2018-2019, the remittances were $994.848 million and they have now increased to $1.230 billion in FY2019-2020

    Mr Syed Aminul Haq, Federal Minister for IT & Telecommunications (MOIT), said that they have targeted and is working towards increasing these export numbers up to $5 billion in the next three years.

    He further said that under the vision of Digital Pakistan, we should promote and support all IT-related projects and connect Pakistan to the digital world.

    The ministry’s spokesperson also mentioned that 6,000 Pakistan-based IT companies were providing IT products and services to people in over 100 countries.

    Pakistani IT companies have been providing products and services to some of the world’s largest companies. The country has been ranked as the third most popular country for freelancing in the world.

    “The Information and Communications Technology industry of our country has seen high achievements in the past few years. Pakistan is surely heading in the right direction in terms of achieving that $5 billion revenue goal for the industry by the year 2024,” said the spokesperson.

  • Did you know Diamond Supreme Foam has an ‘Islamic mattress’?

    Did you know Diamond Supreme Foam has an ‘Islamic mattress’?

    One of Pakistan’s leading mattress manufacturers, Diamond Supreme Foam, has an ‘Islamic mattress’, which the bedding industry giant boasts is the first in Pakistan.

    According to details available on the company’s website, the mattress called ‘Saha’ has “scientifically been developed and balanced for every body type based on Islamic principles”.

    “The Saha is Pakistan’s first Islamic mattress engineered for people who sleep on their back or their right side which is the Islamic way for sleeping,” says the description of the mattress that costs around Rs17,000.

    Medical science tells us that that the best healthy sleeping position is to sleep on your back or on your right side which is also the Islamic way of sleeping, practiced and taught 1400 years ago, it adds.

    “Sleeping on the right side does not let the weight of stomach and intestine to suppress the heart, hence blood circulation is not affected.  By sleeping on the right side, the heart remains in the topside, and aids the process of rising early before sunrise to perform Fajr: the prayer that starts off the day with the remembrance of God.”

    What do you think of the mattress and the manufacturer’s pitch? Let The Current know in the comments below.