Saturday, October 22, 2016

Smartphones For Pakistan's Poor to Close Digital Divide

Mobile broadband (3G/4G) subscriptions in Pakistan crossed 34 million in September 2016, according to Pakistan Telecommunication Authority.  This figure includes 3.5 million subscriptions of higher bandwidth 4G/LTE offered by China Mobile Pakistan (CMPak aka Zong) and Warid.

Pakistan Telecommunications Authority (PTA) is forecasting the number of smartphones in the country to reach 40 million by the end of the year 2016, according to Daily Times.


Lenovo Smartphone Launch in Pakistan



More and more these smartphones are now becoming affordable and accessible to the urban poor and the rural populations of the country. This is helping close the digital divide.

Beginning in October 2016,  Pakistani government will give away five million smartphones to farmers in the country in an effort to improve knowledge of modern farming techniques, according to the BBC. Large numbers of farmers in countries such as India and Kenya have also recently experimented with smartphone technology.

In addition, the Benazir Income Support Program (BISP) has announced plans to give away 30,000 smartphones with 3G subscriptions funded by Universal Service Fund (USF) to low income Pakistanis on BISP.  Each smartphone will have Rs. 250 balance per month. It is intended to enhance digital and financial inclusion, according to a report in Pakistan Observer.

The objective of giving away smartphones is to help increase farmers' productivity.  Digital access is is expected to reduce poverty in rural and semi-urban areas of Pakistan by supporting micro and small enterprises. Market access to the products of marginalized segments will improve their welfare and at the same time boost the national economy.

Lack of financial inclusion and the growing digital divide are known impediments to progress of the low-income and poor segments of the population. Any effort by the government to remove such impediments will help Pakistan's economy by making more people more productive.

Related Links:

Haq's Musings

Smartphones in Pakistan

Pakistan 2.0

Fiber Connectivity Growth in Pakistan

Financial Inclusion in Pakistan

Pakistan Agriculture Value Added


33 comments:

Riaz Haq said...

From #chaiwalla (tea vendor) to #fashion wala (model) for #Pakistan’s blue-eyed boy #Islamabad http://www.thenational.ae/world/south-asia/from-chai-wala-to-fashion-wala-for-pakistans-blue-eyed-boy … via @TheNationalUAE

Arshad Khan has no phone and knew nothing of social media until recently, when photos of the handsome young Pakistani went viral and transformed him from tea seller to fashion model in a matter of days.

Arshad, an 18-year-old with piercing aquamarine eyes, got the first inkling of his rising fame when boys and girls suddenly started thronging his tea stall to take selfies with him. At first he thought he’d done something wrong. He quit his job and went into hiding until friends and relatives told him that it was his picture that had made him popular


Now, sitting among friends at the tea stall in the Islamabad flea market where he worked until only days ago, Arshad says he never dreamed he would become famous.

His change in fortunes began when a freelance photographer, Javeria Ali, took his photo as he poured tea for a customer and shared it on Instagram, with a caption "Hot Tea".

Overnight, Arshad became an internet sensation in Pakistan and beyond, with his picture shared thousands of times on social media with the hashtag ChaiWala — or tea seller.


The Islamabad-based clothing retail site Fitin.pk then contacted him for his first modelling shoot and he now graces the site’s home page, modelling T-shirts.

"Chai wala is no more chai wala, now he is fashion wala," says a message accompanying his photos.

Arshad, one of 17 siblings from Pakistan’s conservative town of Mardan in the north-west, had worked at the tea stall for months, serving customers from morning to sunset for US$5 (Dh18.36) a day. He now hopes to work in TV and films.


"I need money to help my family. I also want to do charity work across Pakistan," he says.

Arshad does not know how to read and write, but he has a dream: he wants to educate others.

"I am not an educated person and cannot claim that I will become a doctor or a judge," he says.

"All I want to say is that I will help those children who are deprived of education. If I get enough money, I will set up schools for children."


Growing up, he had wanted to get an education, "but poverty did not allow me".

Before working at the tea stall, Arshad sold fruit, vegetables and used clothes at the flea market for years.

Recalling the moment Ms Ali took his photo, he says he was serving tea when a woman passing by suddenly stopped, took a snap and went away. He forgot the incident and only realised the picture had made him famous when people told him his blue-green eyes were a top trending topic on social media.


"I know I am handsome, but I also knew a poor person like me cannot become famous," he says.

"My mother often used to tell me that one day you will become a famous man. I always thought it was a wish and nothing else. But now I feel it is due to my mother’s prayers that I have become a model from a tea seller."

Riaz Haq said...

#America keen to help #Pakistan develop #digital economy https://www.thenews.com.pk/print/158377-US-keen-to-help-Pakistan-develop-digital-economy …

The United States is keen to help Pakistan in developing the country’s information technology infrastructure in the underserved areas, its envoy said.

United States Trade Representative (USTR) Ambassador Michael Froman, during a meeting with the minister for finance Ishaq Dar on Wednesday, said the US looks forward to further collaborate with Pakistan in developing digital economy, which could provide opportunities to far flung areas in the country.

“Pakistan’s information technology infrastructure is growing at a commendable pace and providing opportunities for growth to small and medium enterprises through electronic commerce,” Froman said.

He thanked the finance minister for Pakistan’s active engagement in the trade and services agreement of the World Trade Organization. “Pakistan is leading in this area in the region,” he said. Minister Dar apprised the USTR ambassador of the reforms undertaken by the government for stabilisation and growth of the economy.

“Pakistan has undergone considerable tax reforms, which resulted in record tax revenue collection in the last three years,” he said. “Pakistan has also made significant progress in meeting energy shortfall and overcoming security situation of the country.”

Froman congratulated Dar on successful completion of the International Monetary Fund’s programme. He appreciated the measures taken by the government to turn around the economy. He acknowledged the improved investment climate and economic conditions in Pakistan and expressed full support to measures necessary for strengthening bilateral trade ties.

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Meanwhile, Talal Abu Ghazaleh, a global IT leader, from Jordan, during a meeting with the finance minister on Wednesday, said fast expansion of IT services to far-flung areas of Pakistan and healthy market competition provides considerable opportunities for establishing new businesses in the country.

Ghazaleh congratulated the finance minister on the country’s economic turnaround in the last three years. “There are tremendous investment and business opportunities in Pakistan,” he said. The minister said the government’s priority is to further improve the ease of doing business indicator. “Pakistan is receiving international recognition for creating the right atmosphere for international businesses to invest in the country,” he said.

Riaz Haq said...

Pakistan's first ever official report on multidimensional poverty launched here on Monday showed a strong decline, with national poverty rates falling from 55 percent to 39 percent from year 2004 to 2015.

However progress across different regions of Pakistan is uneven. Poverty in urban areas is 9.3 percent as compared to 54.6 percent in rural areas. Disparities also exist across provinces.

The report launched by the Ministry of Planning, Development and Reform, details Pakistan's official Multidimensional Poverty Index (MPI) which was earlier published in the Economic Survey of Pakistan 2015-16.

The report has been complied with technical support from UNDP Pakistan and the Oxford Poverty and Human Development Initiative (OPHI), University of Oxford.

According to the report, nearly 39 percent of Pakistanis live in multidimensional poverty, with the highest rates of poverty in FATA and Balochistan.

The report found that over two-third of people in FATA (73 percent) and Balochistan (71 percent) live in multidimensional poverty. Poverty in Khyber Pakhtunkhwa stands at 49 percent, Gilgit-Baltistan and Sindh at 43 percent, Punjab at 31 percent and Azad jammu and Kashmir at 25 percent.

There are severe difference between districts: Islamabad, Lahore and Karachi have less than 10 percent multidimensional poverty, while Qila Abadullah, Harnai and Barkhan, all in Balochistan, have more than 90 percent poverty.

Deprivation in education contributes the largest share of 43 percent to MPI followed by living standards with contributes nearly 32 percent and health contributing 26 percent. These findings further confirm that social indicators are very weak in Pakistan, even where economic indicators appear healthy.

The report also found that the decrease in multidimensional poverty was slowest in Balochistan, while poverty levels had actually increased in several districts in Balochistan and Sindh during the past decade. The level and composition of multidimensional poverty for each of Pakistan's 114 districts are also covered in this report.

Speaking at the launch, Minister for Planning, Development and Reform, Prof. Ahsan Iqbal, said, Pakistan has set zero poverty goal much before the year 2030, adding,the reduction of multidimensional poverty is one of the core objectives of Pakistan's Vision 2025.

He said, inclusive and balanced growth, which benefits everyone and especially the marginalized communities, is government priority and is essential for promoting harmony in society.

MPI is a useful instrument for inform public policy for targeting, budgeting, resource allocation and inclusion.


Pakistan's MPI establishes baseline not for only Vision 2015, but also for Pakistan's progress towards achieving the Sustainable Development Goals, and complements the consumption-based poverty estimates recently released by the government.

UNDP Country Director, Marc Andre Franche said,"We consider this a highly innovative approach because of its multi-faceted nature and the availability of estimates at the sub-national level."

Multidimensional poverty provides useful analysis and information for targeting poverty, and reducing regional inequalities.

Many countries are using MPI to inform government priorities for planning and it is encouraging to see government of Pakistan adopting MPI to complement monetary poverty measure in Pakistan, he added.

Director OPHI, Dr Sabina Alkire congratulated Pakistan on launching the national MPI as an official poverty measure.


http://www.samaa.tv/pakistan/2016/06/pakistans-poverty-rates-fall-from-55pc-to-39pc-from-2004-to-2015-mpi/

http://www.pk.undp.org/content/pakistan/en/home/library/hiv_aids/Multidimensional-Poverty-in-Pakistan.html

Riaz Haq said...

All the SAARC countries lie in different categories. Like Bangladesh, Nepal and India are in high MPI countries, means there is poverty more than 50%. On the other hand Pakistan and Bhutan are in medium category, and Sri Lanka and Maldives are in low MPI countries. The data of MPI of Afghanistan is not given due to unavailable sources for the collection of the data.



Multi-dimensional poverty index is an international measure of acute poverty covering over 104 countries.
As everyone knows that Poverty is measured as a single dimensional index such as income. But income alone misses
a lot because India is growing fast in economic perspective but health, education and living standard not improved
yet. It is the fact that India’s per capita income lies in one of the top countries in the world but if we look on the
other aspects like health, education and standard of living, then we find that India is not so good in the other aspects
rather than the income. India lies on 73rd position from 104 countries with a 53% multidimensional poor. Among
the 29 states, some states of India having high per capita income, yet lies in the high multidimensional poverty index.
It means those states have high per capita income but lacks in the health and standard of living. Some states like
Kerala is in very good position in Multidimensional poverty index while remaining states are in very bad position in
MPI according to OPHI. MPI illuminates a different set of deprivation and reflects the deprivation in very
rudimentary services and core human functioning for people. It shows the number of people who are
multidimensional poor and the number of deprivation with which poor household typically content.


http://www.erpublications.com/uploaded_files/download/download_07_03_2015_15_24_25.pdf

Riaz Haq said...

Indians' comments about "PoK" calling it " s backwards as it was in 1947" show their utter ignorance about Pakistani Kashmir known as Azad Kashmir. Unlike Indian Occupied Kashmir held by the force of 700,000 Indian troops, Pakistani Kashmiris are totally free. There are no mass protests nor curfews nor ubiquitous military checkpoints humiliating Kashmiris in in Azad Kashmir. A UNDP report just came out that shows MPI (multi-dimensional poverty that includes income, health, education poverty) is less than half that in India. In fact, India is the second poorest country in South Asia after Afghanistan, according to Oxford's MPI data. "India is home to over 340 million destitute people and is the second poorest country in South Asia after war-torn Afghanistan...In South Asia, Afghanistan has the highest level of destitution at 38%. This is followed by India at 28.5%. Bangladesh (17.2%) and Pakistan (20.7%) have much lower levels" according to Colin Hunter of Center for Research on Globalization
http://www.riazhaq.com/2014/10/multi-dimensional-poverty-index.html

Riaz Haq said...

#Pakistan's 2nd, 4th & 5th grade girls much more #literate than #India's. #Nepal's girls do best in #literacy tests http://www.thehindu.com/data/article9259221.ece …

Pakistan, Bangladesh and Nepal have stolen a march over India in quality of school education.

Data from new research on female literacy show that India’s school education system is under-performing in terms of quality when compared to its neighbours, Pakistan, Bangladesh and Nepal. The research studies changes in female literacy over a number of schooling years.

The proportion of women who completed five years of primary schooling in India and were literate was 48 per cent, much less than 92 percent in Nepal, 74 per cent in Pakistan and 54 per cent in Bangladesh.

These findings, which are part of a forthcoming background paper, were released in a blog-post by New York-based International Commission on Financing Global Education Opportunity (or Education Commission) last week. Justin Sandefur, one of the authors of the paper, said, “This is a simple but powerful signal that India’s education system is under-performing.”

The data also revealed that, female literacy rates went up by one to 15 per cent after completing two years of schooling. Corresponding numbers for Pakistan and Nepal were three to 31 per cent and 11 to 47 per cent respectively. “This implies that schooling is roughly twice as productive at generating literacy for women during the early grades in Pakistan when compared to India. Or, it could also mean that Indian schools are much more lenient about promoting students who cannot read,” Mr. Sandefur said.

DHS data

For this research, the authors devised a way to measure the quality of education around the world, with a specific focus on girls, using data from nationally representative Demographic and Health Surveys (DHS) — one of the most comparable data sources on living standards in the developing world. “We used data from all countries with DHS data that included the literacy measure,” Mr. Sandefur said. Around the world, female literacy rates are improving. However, it is not clear if that is because of improvement in school quality, the study says. India ranks low in global indices of female literacy as well. If countries are ranked by the earliest grade at which at least half of the women are literate — a proxy for quality of learning — India ranks 38th among the 51 developing countries for which comparable data is available. Indonesia, Rwanda, Ethiopia and Tanzania — all rank higher than India. Ghana is placed at the bottom. According to this study, just seven per cent of female students in Ghana can read after attaining their sixth grade.

Over the years, most countries studied made improvements in the number of girls finishing primary school, which should lead to more literate women. But for girls who don’t finish primary school, the trend is not encouraging: researchers found that little to no progress has been made in increasing basic literacy for the girls who drop out. The report notes, “Millions of women have spent multiple years in school and emerged unable to read a simple sentence” and “it’s not getting much better over time.”

http://educationcommission.org/news/measuring-quality-girls-education-across-developing-world/

Anonymous said...

Thanks for keeping us posted. A fundamental problem of Pakistani nation is pessimism. We are quick to acknowledge and discuss our shortcoming but rarely do we discuss our achievements and progress. You are one of the few individuals who are optimists. Keep up the good work.

G. Ali

Riaz Haq said...

Mobilink’s #mobile-based #agriculture service launched to for Farmers across #Pakistan. #3G http://bit.ly/2eO7t18 via @techjuicepk

Mobilink is targeting the agriculture sector of Pakistan with the launch of its new value added service (VAS), ‘Ba Khabbar Kisaan’. The App based service utilizing interactive voice response technology will provide farmers information and services related to agriculture such as optimized cultivation methods, modern farming techniques, health education for farmers, health precautions for plants, 24/7 helpline with trainings, weather information, crop insurance, market-related information and a platform for sales.

The launch of ‘Ba Khabbar Kisan’ was held in Dera Sardar Sarfraz Khan, Attock, where more than a 1000 local farmers were present to witness Dr. Syed Ismail Shah, Chairman – Pakistan Telecommunications Authority and Aamir Ibrahim, CEO – Mobilink and Warid Pakistan provide a breakdown of the service’s benefits to the farming community.

With the launch of this service, Mobilink is looking to harness the strength of its extensive telecommunications network to connect farmers, agribusinesses and rural communities, in a bid to drive productivity, profitability and innovation.

“With the launch of our ‘Ba Khabbar Kisaan’ service, Mobilink is showcasing that mobile operators can offer much more than just basic communication facilities,” said Aamir Ibrahim. “This service is in line with the direction we took by re-introducing Jazz, as we now want to offer our subscribers freedom of choice, digital empowerment and the power to do more with less; ultimately becoming the first Telco to reach out and reshape all echelons of society.”

“We believe this service will play an integral role in ensuring farmers get their due reward for playing an important role in the society by transforming their ability to increase crop yields, improve efficiency and grow incomes,” he further added.

Dr. Syed Ismail Shah said, “The government is continuously making all necessary arrangements to ensure farmers are provided support against problems climate change and urbanization bring. Also, we still believe a lot more can be done if the telecom sector plays its due role. In relation to this, we have held various seminars on successful telecom – agricultural models from around the world to stress on the fact that more mobile-based applications are needed for better usage of telecom in agriculture.”

“Thus, it gives me immense pleasure that Mobilink decided to launch a mAgri service in line with international standards with the core objective of increasing agricultural productivity and income. And PTA will continue encouraging the development of local content based applications and is willing to extend all sort of support to help farmers through the provision of reliable and timely information, automation of certain agriculture processes using specialized applications, and connecting the buyers and sellers in the market place,” he further added.

The free of cost service has been developed after understanding the needs of local farmers. It focuses on three pain points of the agricultural sector – productivity losses, supply chain inefficiencies, and financial exclusion – by offering relevant & timely information, supply chain related services, and mobile financial services.

Salim Khan said...

@G Ali and Riaz
Pakistan is better in education, poverty, economy, health and host of other markers. In South Asia, why is Pakistan the only country beside Nepal in the LOW HUMAN DEVELOPMENT INDEX category?

Riaz Haq said...

SK: "Pakistan is better in education, poverty, economy, health and host of other markers. In South Asia, why is Pakistan the only country beside Nepal in the LOW HUMAN DEVELOPMENT INDEX category? "

You should ask UNDP about this inconsistency. As for multi-dimensional poverty as measured by MPI index developed by Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Program, Pakistan consistently ranks better than India.

Here's what UNDP says about MPI:

The MPI index identifies deprivations across the same three dimensions as the HDI and shows the number of people who are multi-dimensionally poor (suffering deprivations in 33% or more of weighted indicators) and the number of deprivations with which poor households typically contend with. It can be deconstructed by region, ethnicity and other groupings as well as by dimension, making it an apt tool for policymakers.

http://hdr.undp.org/en/content/multidimensional-poverty-index-mpi


Here's one possible explanation offered by OPHI's Sabina Alkire:

Because the AF (Alkire & Foster) methodology is multidimensional, there is a chance it might be confused with the
Human Development Index (HDI), which aggregates across achievements in health, education, and
standard of living. In fact, the two measure very different things. The AF methodology (and its particular
example of the MPI) measures poverty: it identifies who is poor and ignores the data of the nonpoor. In
contrast the HDI is a welfare index based on three marginal distributions that combines the aggregate
dimensional achievements of all people (not just the poor) into one overall score. While the HDI may be
limited in terms of data, dimensions, and methodology, it has helped bring into view people’s
achievements in non-monetary spaces, and made it possible for other categories of multidimensional
measures (such as poverty measures) to be envisioned.

http://www3.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP043.pdf

Riaz Haq said...

The woman leading #BISP, #Pakistan's welfare program puts cash in the hands of #women http://www.pri.org/stories/2016-10-26/pakistans-biggest-social-safety-net-program-focused-raising-status-women … #womenslives #BalanceofPower

At a dimly lit welfare office in Rawalpindi, Pakistan, women like Akhtar Shaheen line up to file benefits requests and get their thumbprints scanned for a new biometric identification system.

Shaheen, 40, has five children and needs money for asthma medicine and school fees. She says she wouldn’t be able to send two of her teenaged children to college without it.

The women at this center are among the 5.3 million in Pakistan who get $180 a year in small cash payments through the country’s biggest social safety net, the Benazir Bhutto Income Support Program.

The program pays women only, and that’s by design.

“They are treated as heads of households, the money is going to them,” says program chairwoman Marvi Memon.

Memon says the welfare program she runs is not just about money. It’s about raising the status of women.

“When you’re treating women as primary members of the household, then their importance in the family increases immediately, and their status improves,” Memon says.

Memon, an intensely focused woman who carefully measures her words, knows what it is for your status to improve.

She’s the daughter of a politician, and a minister of state and member of parliament in her own right.

But she wasn’t elected. She was selected by her party in 2008 for a seat reserved for women. Memon is among a wave of women lawmakers to take office since 2002, when Pakistan adopted a quota of 17 percent women in parliament.

Memon, who’s 44, says she has been fighting for the rights of women ever since.

Her best-known legislation is a 2011 law that established stiff penalties for perpetrators of acid attacks.

“During my activism, I saw some victims in hospitals, and I promised them on their dying deathbed that I would get them legislation so that they would get justice,” Memon said.

Memon was able to win support from women across parties to push the bill into law.

Women make up just one in five parliamentarians around the world, and quotas like Pakistan’s are a way to get women like Memon in the door.

But research shows that they are not the whole solution.

“What we see is that quotas are usually not enough in order to really have the female parliamentarians have an impact,” says Alexandra Rosen, senior director of the Brussels-based advocacy group Women in Parliaments Global Forum.

“There are a few strategies that have proven successful in terms of female MPs maximizing their power in parliaments, and the first one is networks.”

Rosen says women often can’t break into the “old boys' clubs” that help male politicians drum up support for their legislation.

Her foundation is building a network of the world’s roughly 9,000 female parliamentarians “to create this kind of 'new girls' network' to rival those traditional routes to power,” she says.

In Pakistan, a "new girls' network" has been given a lot of credit for empowering female legislators.

The UN helped start a Women’s Parliamentary Caucus in Pakistan in 2008, and within a few years, parliament passed Memon’s acid attack legislation, as well as legislation on domestic violence, workplace harassment and legal assistance for women prisoners.

The US has also backed efforts to bring more women into government worldwide, as part of the more than $1 billion spent annually by the State Department on developing and improving women’s rights around the world.

In Pakistan, the US government is running exchange programs that bring female representatives to the US, where they can see legislative practices at the federal, state and local levels.

Riaz Haq said...

Cash Transfers Help Pakistan’s Poorest by World Bank

http://www.worldbank.org/en/results/2016/05/19/cash-transfers-help-pakistans-poorest

Launched in 2008, Pakistan’s flagship national safety net program, the Benazir Income Support Program (BISP), is currently providing income support though predictable $15 monthly cash transfers to more than 5.2 million families of the country's nearly 20 million poorest people.

Over $3.5 billion has so far been disbursed to beneficiaries and the program aims to reach 5.3 million families by the end of the current financial year.

To further support these families and promote human capital development amongst the poorest, effective 2012, BISP has rolled out a top up Co-responsibility Cash Transfer (CCT) program, linked with primary school education of beneficiaries’ children.

Since BISP delivers transfers to female members of the families, this has significantly contributed to women empowerment and promoting financial inclusion. With a variety of innovations and building blocks of Social Protection systems, BISP is evolving as a national platform for provision of targeted services to the poor.

World Bank
" It is miraculous. Over time with the benefits that we have received, our children have rejoined school. Payment of children’s school fee and other expenditures is easy for us "
Khalida, BISP beneficiary from Faisalabad
Approach

According to a recent revision of poverty numbers, around 29% of Pakistanis live below the poverty line and many others are vulnerable to shocks likely to push them below the poverty line.

Before the launch of BISP, Pakistan’s main safety net programs had limited coverage and targeting efficiency: up to one third of the resources distributed were going to non-poor families and the delivery systems were inadequate.

Since 2009, the World Bank’s Social Safety Net Project has supported BISP to develop modern service delivery systems that enabled the institution to efficiently and transparently reach a large proportion of the poorest and provide them the benefit transfers. Besides various administrative improvements, the Project has also supported BISP to strengthen its partnership with provinces for joint implementation of CCTs.

" I was living my life in extreme poverty. BISP became my savior. My children are able to receive the formal education. "
BISP beneficiary

Results

The establishment of a National Socio-Economic Registry through the use of an objective targeting system, hosting a database of more than 27 million households (approx. 167 million people) – the first in South Asia. More than 30 federal and provincial organizations are already using this registry to improve pro-poor targeting performance of respective social sector programs. BISP is about to launch the update of household welfare information in the Registry to be completed by December 2017.
By providing women access to national identification cards and making payments to female heads of beneficiary families, the program has significantly contributed to women empowerment. The enrolment of women for the NID card has almost doubled post the launching of BISP.
Transparency and efficiency have improved since more than 93% of the current 5.2 million beneficiaries receive payments electronically, and even the poorest women can access branchless banking accounts for the first time ever in their lives.
The Co-responsibility Cash Transfers (CCT) in 32 districts is linking cash transfers to primary school education. More than 1.3 million children have been enrolled in the program, of which nearly 50% are girls.
Partnerships with the provinces helped promote the National Enrolment Drive, raise awareness of the program amongst the poor and pave the way for the design and delivery of complementary services.

Riaz Haq said...

#Mobile #Technology Enabling Silent #Financial Industry Revolution in #Pakistan. #financialinclusion

http://www.dawn.com/news/1217284/silent-revolution

.... irrespective of what the old banking school is doing, a silent financial revolution is taking place in Pakistan. New players have entered the financial industry and are offering solutions tailored to the needs of the average man and woman. This technology-driven disruption will change the level of financial inclusion within five years. In all likelihood, the largest retail bank in terms of number of customers, touch points and transactions will be a branchless banking player as opposed to one of the big five commercial banks.


Financial inclusion starts with having a bank account. This is followed by payments, retail purchases, credit and then other services like insurance, pension and other value-added services

The technology-based impact has already started for a simple mobile bank account, which today can be opened within a minute. Three years from now the branchless banking industry would have opened 50 million mobile wallets, substantially more than what commercial banks hold. These M wallet holders are being provided an ATM card. Within six months these ATM cards will be converted into debit cards. The vision is to create 500,000 merchants in Tier 2 and 3 cities over five years for the acceptance of these debit cards.

Again the change in technology will be the accelerator. Instead of expensive point of sale (POS) machines, smart phones which cost less than Rs5,000 will act as POS. This will have a material effect on financial inclusion as 50m of the hitherto unbanked along with 0.5m merchants will enter the formal economy, improving the savings and tax-to-GDP ratio.

With over 50m M wallet holders, person-to-person transaction is expected to increase geometrically. Two developments will drive this change, bypassing the traditional payment railroad.

First, we are already experiencing a slow but steady switch from over-the-counter domestic transfers to M wallet, with volumes increasing from 15,000 to 1m a month in the case of one player alone. Throw in a social payment application which allows low-value payments to be made via WhatsApp, line or a local application, and payments become as easy as sending a message.

Currently, the industry is experimenting with new algorithm-based lending programmes that can assess credit risk based on data generated by the behaviour of an M wallet holder using a scorecard. Once the industry follows suit, the bulk of savers holding an M wallet could become eligible for a credit facility based on their score. This will have an exponential impact on financial inclusion. Even if 20pc of the target users become eligible it will be a multiple of the current credit users in the formal system. Score cards already exist for merchants. When the merchant score card is developed and implemented for the proposed 500,000 new merchants, the lending for microenterprise as well as SMEs will increase.

The last development, which will be driven again by technology and the digital payments railroads, will be financial inclusion through e-commerce. At present, it is estimated that there are around 100,000 e-merchants with less than $100m business transacted.

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Financial exclusion is expected to reduce materially in the next three years. This silent financial revolution has already started rolling out with the advent of the one-minute account. This account will in turn drive payments, retail purchases, credit and e-commerce activity. The days of Pakistan being at the lowest rung of financial inclusion for developing countries will no longer be the case. The sky will quite literally be the limit.

Riaz Haq said...

#India tops with 76 selfie deaths, followed by 9 in #Pakistan and 8 in #US in 6 months https://www.washingtonpost.com/news/worldviews/wp/2016/11/16/more-people-died-taking-selfies-in-india-than-anywhere-in-world-study-says-way-more/ …

The analysis — provocatively titled “Me, Myself and My Killfie: Characterizing and Preventing Selfie Deaths" — found that of 127 reported selfie deaths from March 2014 to September,"a whopping 76 deaths occurred in India alone!”

In a blog detailing the study, it said Pakistan had nine deaths, the United States eight and Russia six over the past two years.

In 2015 alone, Indians taking selfies died while posing in front of an oncoming train, in a boat that tipped over at a picnic, on a cliff that gave way and crumbled into a 60-foot ravine and on the slippery edge of a scenic river canal. Also, a Japanese tourist trying to take a selfie fell down steps at the Taj Mahal, suffering fatal head injuries.

Researchers analyzed thousands of selfies posted on Twitter and found that men were far more likely than women to take dangerous selfies. It found 13 percent were taken in what could be dangerous circumstances, and the majority of victims were under the age of 24.

The most common cause of death worldwide was “falling off a building or mountain,” which was responsible for 29 deaths. The second most second-most common being hit by a train, responsible for 11 deaths.

“This trend caters to the belief that posting on or next to train tracks with their best friend is regarded as romantic and a sign of never- ending friendship,” the study noted.

Most of the Indian deaths were water-related.

The authors hope the study will serve as a warning of the hazards and inspire new mobile phone technology that can warn photo-takers if they are in a danger zone.

Officials in India in recent months have tried to take steps to address this new public safety phenomenon. The country's tourism minister has asked state governments to develop “no-selfie zones” at tourist attractions around the country — including more than a dozen in Mumbai tourist areas after two people drowned while being swept out into the Arabian Sea while posing for selfies.

Last year, no-selfie zones were also established in certain areas of the massive Hindu religious gathering called the Kumbh Mela because organizers feared bottlenecks caused by selfie-takers could spark stampedes.

Riaz Haq said...

Xiaomi #smartphone is officially coming to #Pakistan as #PTA grants approval http://bit.ly/2g1qGNy via @techjuicepk

Xiaomi is now officially permitted to sell its smartphones in Pakistan after gaining approval from Pakistan Telecommunication Authority (PTA). Xiaomi Pakistan made the announcement on their Facebook page,

“Finally, Day has come. We have got approval from PTA now we will soon launch our product line in Pakistan. Cheers Fans.”

Prior to the availability of Xiaomi smartphones through CheezMall, they were being sold illegally in Pakistan. At one point, PTA even banned the brand in Pakistan because it didn’t fulfill the legal requirements.

A PTA spokesperson told ProPakistani that the company has obtained non-objection certificate (NOC) from PTA to start its operations in Pakistan as per government requirements. Xiaomi also cleared National Telecommunication and Information Technology Security Board (NTISB) test.

Initially, PTA has granted the approval for the launch of Xiaomi Mi Max and Xiaomi Mi 5 in Pakistan. Also, it’s confirmed that Xiaomi will not make the distribution through CheezMall this time.

Xiaomi smartphones along with other accessories like power banks, chargers, MI VR etc., will be available for purchase in Pakistan.

Xiaomi is Chinese electronics company and world’s 4th largest smartphones manufacturer. It started its service in Pakistan earlier this year through CheezMall, an online shopping website of Pakistan which offers electronic, mobile and sports accessories.

An official announcement about the launch and selling price is expected in a few days.

Riaz Haq said...

Early drought warning helps #Pakistan's farmers prepare for dry winter. They grow potatoes, not wheat http://reut.rs/2fNSSHE via @Reuters

RAWAT, Pakistan (Thomson Reuters Foundation) - Like his farming neighbors, Bilal Khan plants wheat in late October or early November each year, and harvests and sells his winter crop a few months later.

But this year, there are no wheat stalks are to be seen on his 3 hectares (5 acres) of land in Rawat, a town some 12 miles (20 km) from Islamabad, Pakistan's capital.

Instead, Khan is growing onions, potatoes, cauliflower, cabbage and carrots.

In late October, the Pakistan Meteorological Department informed Khan and other farmers that no rain was forecast for the crucial wheat-growing months of November and December in parts of northern Pakistan that rely solely on rain-fed agriculture.

The warning was one of the first of its kind from Pakistan's weather service, aimed at helping farmers look ahead months, rather than just days, and plan for crops more likely to survive drought.


"As advised by the weatherman on the radio, I exercised caution and opted for vegetable cultivation, it being less water-intensive," Khan said. He is irrigating his crops with water drawn from a nearby pond.

SLEEPLESS NIGHTS

Winter rains are usually reliable in this region – but already those who did not heed the weather forecast are regretting their decision, as they watch the wheat they planted fail.

Muhammad Khan spent $2,000 on wheat seed which he finished sowing on Nov. 7 on his family's 4-acre farm in Ghool, a village about 90 km southeast of Islamabad.

His nights have been sleepless since he noticed the seeds growing abnormally slowly.

The wheat plants were only 3 inches tall by Nov. 21, rather than the 12 inches he would have expected.

"Even if rains come in January and February, the wheat output would be less than 50 percent" of normal, because the grain heads will be underdeveloped, Khan predicted.

Slow growth makes the crop vulnerable in other ways too. Karaim Nawab, a wheat farmer in Gujar Khan, said if wheat doesn't grow strongly enough to properly grip the soil, the plants are at risk of being flattened if there are heavy winds later in the season.

Wheat is grown on around 9 million hectares (22 million acres) of land in Pakistan, 30 percent of which is rain-fed. Around 25 million tonnes of the crop are produced annually across the country. The Potohar plateau in the northeast, where Islamabad and its surrounding area are located, produces 3 million tonnes.

EL NINO INFLUENCE

Farmers usually finish sowing wheat by mid-November and, under normal circumstances, two rainy spells in November and December drench the fields, allowing the seeds to germinate. The harvest begins in April.

This year, things are different. Ghulam Rasul, director-general of the Meteorological Department, said the winter drought appears to be the result of an unusual high pressure zone over Central Asia that has driven rain clouds over northern Pakistan and beyond without letting rain fall.

Rasul says the drought is a consequence of the El Niño phenomenon, but that the effects are much harsher now than the last time the weather phenomenon affected Pakistan, in 2009. The most recent El Niño has also caused severe droughts in Africa and devastating floods in Asia-Pacific countries.

The winter drought comes on the heels of a monsoon that receded in early September, almost three weeks earlier than expected.

TEMPERATURE EXTREMES

Apart from holding back the onset of winter rains across Pakistan, El Niño is also causing large fluctuations between day and night-time temperatures, Rasul added – another headache for farmers.

Riaz Haq said...

Not everyone buys the claim that #India's cash ban will make it more #digital. #Demonitization #Modi http://bloom.bg/2g0gx2U via @markets

After first selling India’s cash ban as a strike against corruption, Prime Minister Narendra Modi has since pushed a tantalizing side benefit.

The move to eradicate 500 rupee ($7.3) and 1,000 rupee notes, representing 86 percent of currency in circulation, would also force hundreds of millions of cash-dependent Indians to use more online payments and bank accounts. That could be a key growth driver in years to come, boosting tax receipts as the black economy is turned white and increasing bank deposits that can be used for lending.

“There is no reason we cannot move towards a cashless India,” Modi said Nov. 27, reinforcing Finance Minister Arun Jaitley’s earlier assertion that the cash ban “will take India towards a cashless economy."

But on the streets in New Delhi, it’s not quite turning out that way.

Deepak Kumar, a 22-year-old security guard who earns 7,500 rupees a month, tried to open an account with a New Delhi branch of the State Bank of India after receiving his salary in old notes. The bank refused, telling him to return in January, he said.

“They said we’re only looking after our customers, we don’t have time to add new customers,” Kumar said, adding he wouldn’t try to open an bank account again. “This cashless thing is good for big people, but for small people like us, it doesn’t mean anything."

Such anecdotes are fueling doubts the demonetization move will lead to a substantial shift to online or mobile payments, particularly among the vast population of poor Indians who lack the necessary bank accounts.

India’s Cash Chaos by the Numbers: Guide to Banknote Revamp

Cash dependent

Problem is, while e-commerce is booming, India remains one of the most cash-dependent countries in the world.

Just over half of the nation’s adults have bank accounts, a precursor to using digital payments. Roughly 98 percent of all transactions are in cash, with 11 percent of consumers using a debit card in 2015, while most retailers don’t accept cards.

In the days after Modi’s Nov. 8 announcement, digital payment companies such as Paytm Mobile Solutions Pvt. Ltd. lauded the move in newspaper ads and said digital payments usage was up. But most new customers will likely be wealthier urbanites, said Saksham Khosla, a research analyst at the Carnegie Endowment for International Peace India.

“I’m very doubtful that this will lead to any meaningful financial inclusion," Khosla. "It does seem a little tacked on. They’re trying to find more and more uses for demonetization than may have originally been intended."

Flip-Flops: U-Turns Blight Modi’s Cash Ban, Leaving Indians Outraged

Part of the problem is the poor penetration of banks in India’s villages -- there are only 18 ATMs per 100,000 citizens in India, according to the World Bank, compared to 129 in Brazil. Additionally, just 22 percent of Indians use the Internet “at least occasionally” and only 17 percent have a smartphone, according to a Pew Research Center report.

Riaz Haq said...

#Mobile banking helps #Pakistan’s poor & women by social & financial inclusion. #BISP

http://www.cambridgenetwork.co.uk/news/how-mobile-banking-helps-pakistans-poor/

Research carried out in Pakistan indicates that mobile phone banking can help alleviate poverty, improve women’s rights through financial and social inclusion and reduce corruption in developing countries.


The study by Dr Atika Kemal of Anglia Ruskin University’s Lord Ashcroft International Business School, is the first to look at how mobile banking innovation can help with the disbursement of government-to-person payments in state welfare programmes.

Dr Kemal studied the Benazir Income Support Programme (BISP) in Pakistan, which was launched in 2008 and is one of the largest social protection programmes in Asia.

BISP provides over 5.3 million low-income households with 4,500 Pakistani Rupees (approximately £34.50) every quarter. The payments are disbursed digitally to women only, as heads of the household.

Pakistan has a population of over 180 million, but only 23 million bank accounts, 11,600 bank branches and 6,232 ATMs across the country (compared to 70,000 ATMs in the UK). The shortage of banking infrastructure is particularly severe in rural areas. Mobile banking has become popular for the poor by providing bank accounts to advance financial inclusion in underserved communities.

The BISP payments were initially distributed to households in cash or money orders via a network of local parliamentarians and postmen. In 2010, mainly to improve transparency, visibility, security and efficiency in the delivery of social cash, a shift to digital technologies, including mobile banking, took place in selected districts.

However, due to the high costs in funding mobile handsets to women, besides other security reasons, mobile banking was gradually phased out and eventually replaced by the Benazir Debit Card.

BISP is primarily funded by the Government of Pakistan, but also receives financial support from multilateral and bilateral donor agencies, including the World Bank and the Department for International Development (DfID) in the UK.

Dr Kemal, an Associate Lecturer at Anglia Ruskin University, said: “The transition from cash-based to digital payments was really due to pressure from international agencies which had invested in the programme. While some political actors resisted the shift to mobile banking, it led to increased accountability and governance, and a reduction in administrative and transaction costs. Financial inclusion was really only a secondary objective for BISP.

“However, from the perspective of women, mobile banking provided flexibility and convenience to cash the full amount of grants at various locations such as banking agents, ATMs and point-of-sale machines via a secure PIN known only to the beneficiary. This eliminated the practice of politicians or postmen demanding bribes for delivering the cash payments at home.

“BISP is also responsible for women’s empowerment through social and political inclusion. Women were issued with national identity cards that were mandatory to register with BISP and to eliminate identity theft when cashing payments. This not only boosted their social standing and authority in their households but also granted political freedoms through assisting their rights to exercise their vote in elections.

“However, my study also found that the majority of women were illiterate, so they encountered digital and financial hurdles. Also, other infrastructural constraints, such as weak mobile signals and power outages in their homes, affected mobile phone usage. Women were also dependent on more literate family members or friends for reading text messages to notify them of payments.”

Riaz Haq said...

The (World Bank) report ( The State of Social Safety Nets 2015) – which identifies India as a “lower middle income group” country – finds that all other BRICS countries, except China, spend a higher proportion of funds on social safety net. Thus, Brazil spends 2.42 per cent, Russia 3.30 per cent, China 0.70 per cent, South Africa 3.51 per cent, and South Africa 3.51 per cent of GDP.
Interestingly, even the two of India’s neighbours – Pakistan and Bangladesh – spend a higher proportion on social safety net, 1.89 per cent and 1.09 per cent.
The report says, “Despite having fewer resources for social safety nets, some lower-income countries allocate considerably more funds than the 1.6 percent average for developing countries”.

http://www.counterview.net/2016/02/india-poor-spender-of-social-safety-net.html

http://documents.worldbank.org/curated/en/415491467994645020/pdf/97882-PUB-REVISED-Box393232B-PUBLIC-DOCDATE-6-29-2015-DOI-10-1596978-1-4648-0543-1-EPI-1464805431.pdf

Riaz Haq said...

#China's #Smartphone Giant #Xiaomi is Officially Launching in #Pakistan on Feb 20 https://www.phoneworld.com.pk/xiaomi-is-officially-launching-in-pakistan-on-feb-20/ via @phoneworldpk

The launch event is going to happen in Islamabad. Smart Link has also announced that Xiaomi’s other eco products will also launch in Pakistan like bluetooth speakers, power banks etc . So, now customers can get all products of Xiaomi in Pakistan.

Earlier, PTA has restricted the sale/ purchase of Xiaomi smartphones in Pakistan. According to PTA Xiaomi is not obeying the country’s law and rules. Moreover, An IT expert, Rafay Baloch, also pointed out on Facebook that Xiaomi phones were allegedly stealing user data and sending it to Chinese servers.

Then soon Xiaomi officials announced in a Public Notice that PTA has withdrawn the ban from its product. In that Public Notice, Xiaomi said:

We would like to clarify that Xiaomi has not officially launched the sale of its smartphones in Pakistan. The ban proposed to be enforced by PTA is specifically targeting the unauthorized resellers who had been unofficially selling Xiaomi products in Pakistan, without complying with the necessary legal formalities.
Later on, PTA has confirmed that any company with official approval can sale smartphones in Pakistan and same is the case with Xiaomi.

We all know that, Xiaomi is famous for launching high-end smartphones at low rate. Not only Xiaomi, many other Chinese smartphone manufacturer has launched smartphones at low rate. This is a big reason why people are hyped up about Xiaomi’s official entry in Pakistan.

Riaz Haq said...

Pakistan saw 13 million smartphone shipments in 2016, according to IDC, as the overall mobile market gradually tilts towards smartphones. The ratio of flip phone to smartphone shipments is now at 60:40.

https://www.techinasia.com/xiaomi-launch-pakistan

Chinese gadget manufacturer Xiaomi announced today it’s launching in Pakistan – the world’s sixth-most populous country – after months of speculation and official denials.

Xiaomi has expanded slowly since its 2011 debut in China, focusing mainly on Southeast Asia, India, parts of the Middle East, and Brazil. Its Pakistan entry is the largest since it ventured into Brazil mid-2015.

Xiaomi’s coming to Pakistan through a distribution partnership – as it did in Brazil – with Rocket Internet’s ecommerce marketplace, Daraz, which is present in Pakistan, Bangladesh, Myanmar, and Sri Lanka.

Jack Yung, Xiaomi’s sales director for South Asia, said three models will be available initially – the Mi Max, plus the budget Redmi Note 4 and Redmi 4A. There are also plans to sell the Mi Band 2, but the company is tight-lipped whether the full range of Xiaomi’s products will eventually reach the country.

-------------------------

As the world's sixth most populous nation Pakistan is a big market for smartphone makers. The country was projected to have about 40 million smartphones last year. Qmobile is the current smartphone vendor in the country.


http://mashable.com/2017/02/20/xiaomi-launch-pakistan/#nIuXQ5yonqql

India is Xiaomi's biggest market outside China, company CEO Lei Jun said earlier this year. In 2016, Xiaomi had hit one billion dollar in revenue in the country. Even as if the company does well in India, it is losing its charm in the home country. Once the hottest phone brand in its home market, Xiaomi had slipped to fifth spot in the fourth quarter last year, according to IDC.

Riaz Haq said...

#Pakistan banks embark on #financialinclusion-
http://www.khaleejtimes.com/business/banking-finance/pakistan-banks-embark-on-financial-inclusion

Financial Inclusion Plan's target is to raise number of customers with access to bank accounts
The Pakistani banking sector, which has already been highly profitable, is on track to expand further with millions of new customers set to enter its fold owing to financial inclusion initiatives.

The priority target of the Financial Inclusion Plan (FIP) is to raise the number of customers with access to bank accounts and services to 50 per cent of the adult population. The number was 23 per cent in 2015 and 12 per cent in 2008.

These are some of the key objectives of the State Bank of Pakistan (SBP), the central bank, and its two associates - Pakistan Microfinance Investment Company (PMIC) and the Central Directorate of National Savings (CDNS) - in launching the Pakistan Financial Inclusion & Infrastructure Project. It has the potential to expand the banking sector, the overall economy and fund new infrastructure projects. The World Bank has come up with a $130 million assistance programme for the FIP.

This decision has been welcomed by the government, bankers and the millions of villagers who have never visited a bank, written a cheque or dealt in any other banking instrument.

What will be the profitability and benefits for service providers and the common man? "The sky is the limit," Finance Minister Ishaq Dar told Khaleej Times.

"The programme will impact the people and the whole economy in a scale never imagined in the entire developing world," said Mohammad Ashraf Wuthra, governor of the SBP.

A spokesman of the SBP's Development Finance Group (DFG) said the project aims at providing banking services to persons, households and businessmen, better access to financial services and banking via modern digital payments. "This will be assisted by fast-growing IT services," the spokesman said.

The SBP will channel the required funds through the PMIC. It is the PMIC's responsibility to provide funds to institutions such as micro finance banks and CDNS branches to develop new financial products to attract people with small savings. The initiative will also help people with savings to fund national infrastructure projects and provide funds to small and medium industries and commercial units at reasonable costs.

Owners of small businesses and households are still seeking greater access to credit, banks, the financial market and other sources of finance. After the policy was implemented to expand financial inclusion from 2008 to 2015, the number of people and households with access to various types of financial services had risen from 12 per cent in 2008 to 23 per cent in 2015.

Apart from the Financial Inclusion Plan, the banks are moving ahead in other areas too. For instance, the growth in FDI inflows is enhancing banks' profitability and financial transactions. The SBP reported that FDI inflows rose 9.9 per cent during the first seven months of the financial year 2016-17 as compared to 2015-16. The fund inflow was mainly from the Netherlands, China and Turkey.

In another development, the SBP has asked banks, forex firms and money changers to accept old US dollar bills from the public. People, including overseas Pakistanis visiting home, have raised complaints that money changers and banks are not accepting old US dollar bills and bills of smaller denominations. In cases where they accepted old bills and bills of $5, $10 and $20, the customers had to suffer losses in terms of lower rates. This move by the SBP should be a big help to all Pakistanis at home and abroad.

Riaz Haq said...

State #Bank to launch a #mobile app for financial transactions across #Pakistan. #mobilemoney #financialinclusion http://bit.ly/2ofA2Kp

The State Bank of Pakistan (SBP) has developed a mobile application – Asaan Mobile Account (AMA) – to allow financial transactions across the country.

The announcement was made by SBP Executive Director Syed Samar Hasnain while speaking at the event of rebranding of Tameer Microfinance Bank as Telenor Microfinance Bank. He said that AMA app will provide a single platform to all bank account holders on different mobile phone networks to conduct financial transactions, which will be like creating “universal interoperability”.

The application will be simple to use and will not necessarily require the use of smartphones. People with feature phones will also be able to benefit from the app. It will take about two minutes to create the account, with a cost of Rs. 10 for the verification of users’ information. Director said,

“People could pay their utility bills, while firms could disburse salaries and pensions via that application. The application would also help people make payments to their dry cleaner, milk vendor, barber and etc… Transactions would definitely have financial limitation and caps…”

National Database and Registration Authority (NADRA) is also on board with SBP for verifying clients’ information. Director added that the objective of the app is to reduce transactions in hard cash and avoid money thefts.

He further said that the number of branchless bank accounts has increased 3.7 times over the last year and the app will help SBP achieve its vision of providing access of banks to 50% adult population by 2020.

Telenor Microfinance Bank Chief Executive Officer Ali Riaz Chaudhry said that 100 million people in Pakistan are involved in economic activities in the country and 80 million of them don’t even have access to money and bank accounts. He said,

“We have set a target of providing access to money and banks to some 50 million people in the next three-four years. 20 million people transferred money worth Rs. 200 billion via Easypaisa in the last one year,”

SBP Director said that the AMA app was in the implementation stage and would be launched in June 2017.

Riaz Haq said...

#Pakistan adds around 700,000 #3G #4G subscribers in February 2017 to bring total to 39 million #mobile #Broadband https://www.telecompaper.com/news/pakistan-adds-around-700000-3g4g-subscribers-in-february--1190254#.WN0lRRWgLG4.twitter …

Pakistan added 692,741 3G/4G subscribers in February this year, ending the month with over 38.96 million 3G/4 G subscribers, up from 38.26 million in January, according to a report from Pakistan Telecommunications Authority (PTA). Mobilink (Jazz) led the 3G/4G market with over 12.7 million subs¬cribers, followed by Telenor (10.6 million 3G and 4G subscribers), CMPak (10.7 million 3G and 4G subscribers), and Ufone (4.8 million 3G subscribers). Warid had 637,363 LTE network subscribers at end-February.

http://www.pta.gov.pk/index.php?option=com_content&task=view&id=269&Itemid=658

Riaz Haq said...

Fast track growth of digital ecosystem, financial inclusion

http://pakobserver.net/fast-track-growth-digital-ecosystem-financial-inclusion/

Amanullah Khan

Karachi

For the overall digital ecosystem development in Pakistan, a consultative and collaborative approach is required among different industries ranging from Health, Education, Agriculture and Media on different levels including respective regulators, government bodies, private sector and public at large to drive similar socio-economic benefits that emerged through the convergence of ICT and banking sector.
In line with the government’s vision for digital financial inclusion in the country, PTA is serving more as a facilitator helping mobile operators transform themselves into digital service providers and creating awareness among the masses to fully capitalize this opportunity for the betterment for all.
These views were expressed by Dr. Syed Ismail Shah, Chairman, Pakistan Telecommunication Authority during his keynote as the Guest of Honor in Digital Banking and Mobile Payments Summit 2017 held in Karachi.
Shah presented the growth witnessed in telecommunication sector over the years with special focus on mobile broadband. He also shared the regional comparison of data usage over the internet and the surge observed in Pakistan following the launch of 3G and 4G technology.
Shah pointed out that close to 90% of the country’s population is covered in terms of mobile telephony and few projects have already been launched to take it further.
Addressing the summit, Syed Irfan Ali, Executive Director, Banking Policy and Regulations Group, State Bank of Pakistan said, “Achievement of Financial Inclusion is the first and foremost objective of the Government of Pakistan and the central bank. SBP’s National Financial Inclusion Strategy (NFIS) has been set out to enhance the outreach of basic financial services to unbanked/undeserved segments and aims to target 50% growth in bank accounts by adult population by 2020. Branchless Banking is the strongest driver for achievement of financial inclusion objective and with 11 branchless banking operators, 20 million mobile wallets and agent network of 350,000 over 1.3 million transactions are carried out every day.”
Ali also said that aimed at taking customer services in financial services industry to the next level, the State Bank of Pakistan is working to introduce a separate category of Digital Bank which incorporates new and developing technologies throughout a financial services entity.
The conference was organized by Pakistan’s premiere conference producers TerraBiz in collaboration with PwC as the Premium Knowledge Partners and featured some of the most insightful speakers from across Pakistan, Europe and the US. The summit was attended by over 400 delegates.
Chris Skinner, Fintech Titan by Wall Street Journal delivered the international keynote on the ‘internet value and the next 10 years in banking’.

Riaz Haq said...

#HongKong #fintech firm to move #research & #development work to #Pakistan

https://tribune.com.pk/story/1384831/hong-kong-firm-move-rd-department-pakistan/

LAHORE: Octo3, a Hong Kong-based financial technology company, has announced to move its entire Research and Development (R&D) wing to Pakistan.

The company, which specialises in development and provision of modern payment and other transactional solutions, further announced that it will invest in the Pakistani market in order to transform its ICT landscape.

The announcements were made based on the robust developments in Pakistan’s Information Technology sector and a rising need of digital payment solutions due to the growing e-commerce segment in the country.
“We have decided to shift our entire R&D department and other core function to Pakistan from Hong Kong as the country offers a lot of talent in the IT sector,” said Group’s Chief Executive Officer Tyrone Lynch.

“Few years ago, we outsourced our R&D wing to India, but after working a while we realised that things didn’t work as per our expectation, and we once again moved back to Hong Kong.

“After analysing the Pakistani market and the rapid developments and upcoming scope of ICT and digital payment solutions, on the back of China-Pakistan Economic Corridor (CPEC), we decided to shift our R&D wing to Pakistan,” Lynch added.

The company, which started its operations in 2009, has its presence in Hong Kong, Singapore, Bangkok and now Pakistan with its clientele expanding in almost entire modern economies.

Since its founding chairman is a Pakistani, it aims to add a lot of value in CPEC-related and other projects by building database centres and other such ICT infrastructure both with government as well as with private and multinational companies.

The management is already in talks with local banks and financial institutions for provision of backend support to locally available payment solutions, which can be accepted globally as well.

“We are a solution provider company but in Pakistan we will work both on ICT as well as digital payment solutions,” said Ajmal Samuel, ,hairman and Co-founder Octo3 Group Holdings Limited while talking with The Express Tribune.

“I have access to foreign players who are willing to invest in emerging economies, however, due to the negative perception of the country they hesitate to visit,” he added.

Talking about payment solutions, Samuel said that existing players offering different wallets have already paved their way and have established the market and “the next step for us is how we can transfer this existing customer base and wallets to e-commerce payment solutions, which can simultaneously be accepted in global markets”.

“The e-commerce growth is so huge in Pakistan that some global players like Amazon have asked us whether our company can provide any digital payment solutions from Pakistan,” he claimed.

Riaz Haq said...

#Pakistan to launch state-of-the-art E-payment gateway. #PayPal #AliPay #ecommerce

https://tribune.com.pk/story/1420372/pakistan-launch-state-art-e-payment-gateway/

Finance Minister Ishaq Dar announced on Friday that Pakistan would open international electronic payment gateways ahead of the likely arrival of PayPal and Alipay in the country.

While presenting the budget for 2017-18 in the National Assembly, the finance minister said the State Bank of Pakistan (SBP) was developing a state-of-the-art e-gateway at a cost of Rs200 million.

“The system will facilitate transactions through mobile banking,” he said. “The Rs200-million investment is being undertaken by the SBP.”

Even though PayPal is a world-renowned international e-payment system, Alipay is not as common across the globe. However, recently, Prime Minister Nawaz Sharif developed an understanding with Alibaba Group Founder and Executive Chairman Jack Ma, who also owns Alipay, to open its office in Pakistan. Alipay will enable Chinese and Pakistani traders to make easy e-payments between the two countries.

Meanwhile, information and communications technology expert Parvez Iftikhar said the establishment of the e-gateway system at the highest regulatory level – the SBP – was an effort towards replacing the existing manual trade payment system by opening Letters of Credit.


Digital Pakistan

The finance minister said the telecommunication sector was one of the important pillars of the country’s economic development. Hence, in order to further incentivise the sector, customs duties at the rates of 11% and 16% were being withdrawn and a uniform rate of 9% regulatory duty was being levied on telecom equipment in the coming fiscal year.

Additionally, Dar said start-up software houses would be exempted from income tax for the first three years. Similarly, exports of information technology (IT) services from Islamabad and other federal territories will be exempted from sales tax.

Mobile phone industry – another important element in the IT sector – received a further relief as withholding income tax on mobile calls was reduced from 14% to 12.5% and federal excise duty was reduced from 18.5% to 17%.

“We hope that provincial governments will also reduce the rate of sales tax on mobile industry,” he said. “In order to encourage the use of smartphones, the customs duty will be reduced from Rs1,000 to Rs650.”

Iftikhar commended the incentives and tax relief for the IT sector, which were meant to enable industrial players to invest more in the sector. “Digitalising Pakistan is the way forward. This is how we will cope with the developed countries,” he said.

Nevertheless, he added more could have been done to achieve a faster growth in the sector. “Reduction of withholding tax on phone calls and duty on smartphones is an encouraging development. However, calls and phones should have been made tax-free in the larger interest of digitalising the economy.”

Branchless banking

Dar announced exemption from withholding tax on cash withdrawals by branchless banking agents.

The move has been undertaken to realise the government’s dream of providing 50% adult population of Pakistan access to banks under its Financial Inclusion Strategy 2020. At present, 25% adult population has access to formal banking channels.

E-commerce and IT need to watch out for the budget

Iftikhar said the exemption from withholding tax on cash withdrawals under branchless banking would enable the government to document the economy, which would be one of the great efforts towards minimising the size of undocumented economy.

“Progress in almost every sector of the economy – like banking, agriculture, education, health and governance – is now linked with adoption of telecommunication,” he said.

Meanwhile, Jazz Director Communications Anjum Rahman said the government was supporting the agenda of ‘Digital Pakistan’, which was in line with the company’s vision and aspirations.

Riaz Haq said...

#Mobile #CellPhone & #Satellites Improve #Farming in #Pakistan. #Irrigation #Agriculture #Water #Technology

https://learningenglish.voanews.com/a/mobile-phones-improve-farming-in-pakistan/3922948.html

Mobile phones and satellites are becoming valuable farming tools in Pakistan.

A new program there uses satellite information to estimate how much water a field needs. The satellite then sends this information by text message to farmers' mobile phones.

The program’s aim is to prevent the farmers from overwatering crops. A 2013 report from the Asian Development Bank says Pakistan has some of the most severe water problems in the world. The country’s water availability is similar to Syria’s, where a lack of rainfall has intensified civil war.

Pakistan is only able to store water that can last up to 30 days. That is far below the recommended storage amount of 1,000 days.

Several issues have led to Pakistan’s water crisis. They include climate changes, a growing population, local water mismanagement and a greater demand on farmers.

Many fear the water crisis could weaken relations between Pakistan and India. The two countries share the Indus River.

Turning off the water

Many older Pakistani farmers received agricultural training several years ago, when water was more readily available. They know the risks that come with underwatering crops.

But using too much water can reduce crop harvests.

The Pakistan Council of Research in Water Resources found that rice farmers were using more than three times as much water as they needed.

The council asked the Sustainability, Satellites, Water, and Environment research group, at the University of Washington, to get involved. The council wanted the research group to use science to help inform irrigation choices.

Pakistan's program started with 700 farmers in the spring of 2016. By January, 10,000 farmers were receiving text messages with a water amount advisory. For example, one message read: "Dear farmer friend, we would like to inform you that the irrigation need for your banana crop was 2 inches during the past week."

The messages come from a fully-automated system. It uses publicly available satellite information. It also uses models to compute how much water each farmer needs to irrigate.

A national effort

The council plans to expand the program for use across the country, and expects millions of farmers to participate. But first the system must be reviewed.

The researchers want to know how easy it is for farmers to use, and how many follow the irrigation advisories. They also want to know how accurate it is and whether it saves farmers money.

They are collecting responses from farmers over the phone.

Faisal Hossain is with the University of Washington. He says he has not seen a report on the results yet. However, the group heard from one farmer in the program who said he was able to get about 700 kilograms more wheat than his neighbor. The farmer said he believes the irrigation advisories made this possible.

Expanding the program may be difficult. The council may need to work harder to persuade farmers to trust the technology. Those working on smaller farms may not feel comfortable depending on mobile phone technology.

Mobile phones are already very common in Pakistan, however. And last year the Punjab government announced that it would give out 5 million smartphones to farmers.

Riaz Haq said...

Karandaaz #Pakistan signs grant agreements with 4 ‘#FinTech Disrupt Challenge’ winners - https://pakwired.com/karandaaz-pakistan-agreements-fintech/ … via @pakwired

One of Pakistan’s top financial technology & inclusion players, Karandaaz Pakistan, has signed grant agreements with four winners of the ‘FinTech Disrupt Challenge’ 2017. Aimed at hunting for extraordinary startup ideas worthy of creating substantial social impact, the second chapter of FDC solicited innovative responses to bottlenecks in Pakistan’s financial services sector.

Held at a local hotel in Islamabad, the event saw Karandaaz Pakistan CEO Mr. Ali Sarfraz signing grant agreements with the FDC 2017 winners. CreditFix, the FDC ’17 winner founded by Owais Zaidi, was awarded a grant of USD $100,000. Three runners-up namely Agri-Gate by Saad Tamman, UniKrew Solution by Naveed Tejani, Syed Taha Ali, and Muhammad Naveed Shareef, and Invoice Wakalah by Muhammad Waseem Sheikh, received USD $20,000 each in funding.

Through FDC 2017, Karandaaz had invited startups in five thematic areas including access to financial services, payments, e-commerce, interoperability, and early stage ideas related to mWallet use cases, education of financial services through technology, customer engagement/experience, microcredit, and digital savings. Banks, government regulators, incubators, and complementary actors from the FinTech industry had assembled together at the event to hear the 23 shortlisted startups present their ideas in front of a panel of experts.

“We are confident that the grants we have released today will help these promising startups go to market and change Pakistan’s financial services landscape for the better,” said Mr. Ali Sarfraz, CEO, Karandaaz Pakistan. “The FinTech Disrupt Challenge is a remarkable platform through which we give emerging and aspiring fin-tech players of Pakistan an opportunity to materialize their passion of promoting financial inclusion in the country. I wish CreditFix, Invoice Wakalah, UniKrew, and ‘Agrigate’ the very best of luck for the future.”

The FinTech Disrupt Challenge is an extension of Karandaaz Pakistan’s overall ambition of promoting financial inclusion to marginalized segments of the society. The company extends financial and technical support to financial technology startups which showcase substantial potential to create value for the society.

Riaz Haq said...

#Fintech Startups in #India & #Pakistan Find A Champion In Emerging Market Accelerator Called DFS Lab via @forbes

https://www.forbes.com/sites/chynes/2017/07/18/south-asian-fintech-startups-find-a-champion-in-this-emerging-market-accelerator/#33e128ff3a64

Owais Zaidi was sitting in traffic when a dilapidated-looking cab pulled up next to him. The cabbie asked to borrow 1,000 Pakistani rupees so he could get his tires changed, explaining that a market loan would cost him nearly 50 rupees a day in interest. Zaidi was moved by the man’s plight, and he gave the money as charity rather than a loan. But the encounter got him thinking about the millions of underbanked consumers in Pakistan who face predatory lending practices.

“The guy looked genuine so I gave him money, but it really bothered me how the poor are exploited,” Zaidi said. “Based on my experience consulting with banks, I know how straight-jacketed they are in their policies as well as thoughts.”

Zaidi decided to do more than help this one cabbie. In 2016, he founded CreditFix, a credit marketplace that draws on alternative data to assess creditworthiness among unbanked consumers. The company will launch a pilot program in Pakistan in August with 50,000 potential customers, Zaidi said. CreditFix’s platform will use borrowers’ work histories, mobile top-up records, and utility payments to generate credit scores that will then be visible to lenders who use the marketplace.

“The core goal of CreditFix is to facilitate the underserved and unserved segments of the population in getting access to fair credit, primarily for revenue generating assets,” Zaidi said.

CreditFix’s launch was aided in part by Digital Financial Services Innovation Lab (DFS Lab), a Bill & Melinda Gates Foundation-backed accelerator that supports fintech startups in the emerging markets of South Asia and sub-Saharan Africa. DFS Lab provides companies with grant money and is developing an investment model as well. However, the ultimate goal is to connect startups with investors who can provide advice and funding as these early-stage businesses evolve. The organization offers regular mentorship, along with access to resources such as Amazon Web Services and marketing and mobile app support through the Global Accelerator Network (GAN). DFS Lab aims to provide the types of support that are vital to startups and are often lacking in developing markets.

“In Silicon Valley, it’s still hard, but there’s a whole really rich ecosystem that happens -- networking, mentorship, an ethos and community around being an entrepreneur,” said DFS Lab Director Jake Kendall. “Those elements are really missing in developing countries. It’s very hard to connect with people who are at the global frontier.”

Access to qualified, experienced investors can prove particularly important, because predatory investors are prominent in emerging markets, according to Kendall. In some instances, the investors don’t understand the startup space because they’re coming from vastly different industries. In others, they’re focused solely on making money off the companies rather than helping them grow sustainably. The team at DFS Lab tries to prevent such failures by getting quality companies in front of investors who can genuinely assist them.


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With two billion adults still without bank accounts throughout the world, the need for innovative financial services is real. DFS Lab and the startups with which it works have a real opportunity to help meet that need by emphasizing the unique circumstances of underserved consumers in emerging markets.

Riaz Haq said...

#financialliteracy in #Pakistan at 26% higher than #India's 24%, according to S&P Survey

http://gflec.org/wp-content/uploads/2016/02/Gallup-country-list-with-score.pdf …


https://pbs.twimg.com/media/DFtEsMDUAAAD7DU.jpg:large

Riaz Haq said...

THE EXPRESS TRIBUNE > BUSINESS
Google puts Pakistan among 4 countries that will give next billion smartphone users

https://tribune.com.pk/story/1573034/2-google-puts-pakistan-among-4-countries-will-give-next-billion-smartphone-users/

KARACHI: The ‘Next Billion Users’ of smartphones will emerge from four developing countries including Pakistan, according to a Google representative speaking at the launch ceremony of the company’s latest application.

The other three countries include Indonesia, India and Brazil, Google’s Asia Pacific Industry Head Khurram Jamali said on Thursday, as the company launched ‘Datally’, an Android-based app that helps smartphone users understand, control, and save mobile data.

“At least 40 million people are connected to the internet in Pakistan at the moment,” he said while talking to The Express Tribune. “Before the introduction of 3G/4G, the number was about five million.”
He said that the number of people watching videos on the internet is growing by 66% annually while social media users are increasing by 35% per year, adding that 80% of the users surf the internet through mobile phones.

“Now mobile is internet and internet is mobile,” he stated.

The released app, ‘Datally’, works on all smartphones running Android 5.0 (Lollipop) and higher, and is available on the Google Play Store globally.

Google found during extensive user research around the world that many smartphone users worry about running out of data. This is an especially acute problem for the new generation of smartphone-users from developing countries intending to come online, Jamali said.

People testing the app saved up to 30% of mobile data, depending on the way they used Datally, a presser released after the event stated.

Apps frequently use data in the background for updating content and information. Datally’s ‘Data Saver’ feature lets users control data on an app-by-app basis, so that data only goes to apps they care about.

Data Saver bubble

“Once Data Saver is turned on, Datally’s Data Saver bubble will appear when a user goes into an app that is allowed to use data. Whenever that app uses data, the Data Saver bubble will show the current rate of data usage, and users can easily choose to block that app’s data use if things start to get out of control. The Data Saver bubble is like a speedometer for mobile data.

Five companies plan to set up cellphone assembly lines

“Datally alerts users when apps start consuming a lot of data, and it allows them to see how much data they have used on a daily, weekly, and monthly basis.

“Datally’s Wi-Fi feature helps find networks nearby, rated by the Datally community. Once connected, users can rate the Wi-Fi networks themselves based on their own experience.

It was the first time in Pakistan’s history that Google launched an application at the same time as all the other countries which shows Pakistani market’s growing importance for Google, said Tania Aidrus, chief of staff of Next Billion User project.

“Google is working on digitalising Urdu to promote local content and bring the vast majority of non-English-speaking Pakistanis online,” she added.

Riaz Haq said...

India ranks 109 in mobile internet speeds, 76 for fixed broadband: Ookla Global Index

India ranks at a lowly 109 (vs Pakistan 89) when it comes to mobile internet speeds on a global scale, while it fares slightly better with a ranking of 76 in fixed broadband speeds
India ranks at a lowly 109 when it comes to mobile internet speeds on a global scale, while it fares slightly better with a ranking of 76 in fixed broadband speeds, according to Ookla’s November Speedtest Global Index. According to the company, the average mobile download speed in India was 7.65 Mbps (vs Pakistan 13.08 Mbps) at the beginning of 2017, and this has improved marginally to 8.80 Mbps for November.
However, India does not fare so well in comparison to its neighours for mobile internet speeds. If one goes by the list, India is ranked below Pakistan (13.08 Mbps rank 89)  , Sri Lanka, Nepal, and we actually saw our rankings drop down for the month. Ookla says that while mobile internet speeds in India saw a 15 per cent increase, it was the fixed broadband line which jumped drastically with close to 50 per cent increase and stood at 18.82 Mbps for November. In January, speeds for fixed broadband line stood at 12.12 Mbps.

http://indianexpress.com/article/technology/tech-news-technology/india-ranks-109-in-mobile-internet-speeds-76-for-fixed-broadband-ookla-global-index-4977742/

https://www.speedtest.net/global-index