Friday, July 19, 2024

Pakistan's Digital Public Infrastructure (DPI) Initiative Transforming Lives

Pakistan's journey to build a digital public infrastructure (DPI) began in March 2000 with the establishment of NADRA, the National Database and Registration Authority. The Gates Foundation defines DPI as follows: "DPI is a digital network that enables countries to safely and efficiently deliver economic opportunities and social services to all residents. DPI can be compared to roads, which form a physical network that connects people and provides access to a huge range of goods and services...... strong DPI has three foundational systems—identity, payments, and data exchange—that together can make life easier in important ways". 


Digital Public Infrastructure. Source: World Economic Forum


Transformational Impact:

An article recently published on the World Economic Forum website sheds light on how Pakistan's digital public infrastructure is transforming lives in rural Pakistan. Here's how it begins: 

"On a scorching day with temperatures soaring to 42 degrees, Manzoora, a mother from the flood-stricken district of Shaheed Benazirabad, rural Sindh, Pakistan, made a significant leap: she withdrew cash from her own bank account for the very first time. This milestone was made possible through a mobile cash transfer programme initiated by the Sindh government, which partnered with digital service providers to empower citizens like Manzoora. This is just one example of how DPI is changing the lives of millions of Pakistanis". 

An earlier UNDP report  titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood has also described the socioeconomic impact of technology in Pakistan in the following words:

"The world as we know it has been and is rapidly changing. Technology has proven to be one of the biggest enablers of change. There has been a significant emphasis on digital training, tech education, and freelancing in the last several years especially during the pandemic, through initiatives from the government, private and development sectors. Covid-19 acted as a big disrupter and accelerated the digital uptake many folds. In Pakistan, we saw the highest number of digital wallets, online services, internet-based services and adaptability out of need and demand". 

Digital Identity: 

NADRA launched Computerized National Identity Card (CNIC) the same year it was established. It uses biometric data and personal information to confirm the identity of the cardholder as a citizen of Pakistan. The CNIC card is used across the country for voting in elections, opening bank accounts, issuing passports, getting driver's licenses, registering marriages and divorces, completing real estate transactions, participating in social safety net programs like Benazir Income Support, obtaining mobile phone numbers/sims, purchasing tickets for airlines and railways, etc etc. 

The introduction of CNIC was a "foundational change, positioning Pakistan among a select group of nations equipped to manage comprehensive digital identities for over 240 million citizens", according to the World Economic Forum. Within four years of launching the Benazir Income Support Program (BISP) – a social protection initiative to alleviate poverty – CNIC issuance to adults increased by 72%. 


Pakistan Instant Payment System. Source: State Bank of Pakistan


Payments:

Digital identity enables payments from the government to citizens as well as financial transactions among individuals, businesses and government entities. The introduction of RAAST, an instant low-cost payment system launched in 2021 by the State Bank of Pakistan, has spurred digital payments in the country.  It seamlessly and securely connects government entities, a variety of banks, including microfinance banks (MFBs),  electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs). 

QR Codes: 

This year, the State Bank of Pakistan has launched P2M (Person to Merchant) services. These allow people with electronic wallets in their mobile phones to pay for goods and services using merchants' QR codes. “The P2M service will enable payment acceptance by businesses using quick response (QR) codes, Raast Alias, IBAN and request to pay (RTP),” the Central Bank said in an announcement. 

"All REs (regulated entities) shall enable…capabilities for processing P2M transactions via their delivery channels including mobile apps, internet banking portals and USSD channels (where applicable) by March 01, 2024." The central bank asked Raast merchant service providers (MSPs) to ensure that customers are not charged any fee on their purchases, by merchants or third parties.

"MSPs may…charge a reasonable fee from merchants for the services provided; however, they are encouraged to initially waive off such charges to promote merchant adoption."

RAAST Uptake:

Raast, the State Bank of Pakistan's Instant Payment System, is playing an important role in facilitating free, convenient and secure real-time transactions across the country, according to a report published by the State Bank of Pakistan. During Q3 of FY24,  Raast processed 140 million transactions totaling Rs. 3,437 billion.

Digital transactions took center stage in Pakistan's financial landscape during Q3 FY 2023-24, capturing a commanding 83% of 844 million total retail payments processed by Banks and Electronic Money Institutions (EMIs), while the remaining 17% were Over-the-Counter (OTC) transactions at banks’ branches, reports Mettis Global

Pakistan National Socioeconomic Registry. Source: Maintains

National Socioeconomic Registry:

The National Socio-economic Registry has been created . It will be regularly updated to keep it current and deliver services to the Pakistanis most in need. The effort started in earnest in 2020 to hand out Rs. 12,000 per family to 3 million most affected by the COVID19 lockdown. Here's how a Pakistani government website describes the digital registry architecture:

"The Cognitive API architecture for Ehsaas’ National Socio-Economic Registry 2021 is one of the six main pillars of ‘One Window Ehsaas’. With the survey, which is building the registry currently 90.5% complete nationwide, Ehsaas is firming up its plans to open data sharing and data access services for all executing agencies under the Poverty Alleviation and Social Safety Division (PASSD). Data sharing will be done through the Cognitive API Architecture approach. The deployment of Ehsaas API architecture for data sharing will allow executing agencies to access data from the unified registry in real-time to validate beneficiary information. This will empower them to ascertain eligibility of potential beneficiaries". 

DPI Future Plans:

In future, Pakistan is set to launch several ambitious DPI initiatives, including expanding the RAAST payment system, implementing a nationwide digital health records system, and launching a blockchain-based land registry. These projects promise to drive efficiency and transparency across multiple sectors, positioning Pakistan as a pioneer in the global digital landscape, according to a report by the World Economic Forum


22 comments:

Vineeth said...

I would like to see you write something about the current situation in Pakistan. As it is, all I am seeing here are the same routine of India-bashing and some occasional "feel good" stories like these about digital initiatives, mangrove planting, how Pakistanis are flocking to foreign universities or how the country made a stellar achievement by scoring a couple of points above India in some random index.

How can the country get out of the explosive political situation and the economic quagmire that it finds itself in? Should the establishment tear down the facades and assume direct power? Should it give up political puppetry once and for all and go back to its constitutional duties (like its Indian counterpart) and give space and freedom to the the political parties to sort out their issues by themselves and evolve and mature on their own as in other democracies?

How can the country get out of the seemingly endless cycle of IMF bailouts and put itself on a path towards sustainable development? How can it attact foreign investment? What structural reforms does it need to pursue to stimulate industrial growth?

With regards to problematic relations with its eastern neighbour, should it stick with its "principled" stand on Kashmir issue (and hope for some miraculous change of fortunes in the future) or should it be pragmatic by making a compromise and prioritize normalization of relations first? Should it adopt a posture such that territorial disputes are strictly confined to the diplomatic sphere (no more proxy wars and Kashmir jihad) so that peace, normalization, people-to-people contacts and regional trade can flourish?

On the security front, what economic or strategic leverage can the country use to stem the tide of rising militant attacks from across the Afghan and Iranian borders? Are kinetic options like cross-border strikes the only the option? How can it play its cards right with regard to balancing its relations between China and the West?

There are many such things about the current state of politics, economy and external relations of Pakistan that you hardly ever write about. But of course, its your blog and its upto you to choose what you write. Its just an observation of mine.

Riaz Haq said...

Vineeth:"I would like to see you write something about the current situation in Pakistan"

I follow Bill Clinton's advice: “Follow the trend lines, not the headlines”

Things like improvements in digital/physical infrastructure and rapid switch to renewables are far more impactful on the lives of ordinary Pakistanis than the daily headlines and commentary that you can read in the pages of your favorite Pakistani newspapers like Dawn and Express Tribune.

What you call "random index(es)" are far more reflective of the people's lives than the headline gdp numbers in countries like India and Pakistan.

Macroeconomic issues and IMF bailouts are destined to become mere footnotes for historians who will write about Pakistan a century from now.

Vineeth said...

"Things like improvements in digital/physical infrastructure and rapid switch to renewables are far more impactful on the lives of ordinary Pakistanis.."

From what I can see, what is having the greatest "impact" on Pakistanis at moment aren't renewables or digital infrastructure, but never ending political turmoil and an economic meltdown.

"Macroeconomic issues and IMF bailouts are destined to become mere footnotes for historians who will write about Pakistan a century from now."

A century from many things might be footnotes - including Modi, Hindutva, India's grinding poverty, unemployment and many others. But that hasn't stopped you from writing articles on them week after week, did it?

You can pretend many if these issues do not exist or that they are insignificant, but that does not make it so.

So, what's the real agenda of this blog, sir?

Majumdar said...

Vineeth,

The real purpose of this blog is to tell us good news about Pakistan, bad news about India and about why and how Pakistan is doing better than India.

Regards

Vineeth said...

Also, there is another thing to be kept in mind when one tries to rely solely on "trends" to predict future course of events. Beyond these "trend-lines", many unforseen events may transpire that alter the fortunes of nations (or the world itself) for better or worse - destructive wars, a far more devastating pandemic, political upheavals and many others. In the early days of the "Arab spring", would anyone in Syria or the wider world have thought that the arrest of a teen for an anti-regime graffiti would spark protests that would metamorphose into an armed revolt and eventually a decade-long civil war that would devastate the country? When Mikhail Gorbachev became of the leader of the Soviet Union in 1985, who would have foreseen that he and his reforms would open a floodgate of changes that would lead to the collapse of communist regimes across eastern Europe and the dissolution of the USSR itself - and that too in barely six years? Chinese have been far more cautious, implementing their version perestroika (economic reforms) but not the glasnost (political reforms). But will an unforseen event, an economic crisis or political upheaval lead to the collapse of autocratic Communist Party rule some day in that country as well? Who knows? In the case of the Soviet Union, all it took was a Mikhail Gorbachev.

Likewise, the ongoing "perfect storm" that Pakistan is going through - political instability, economic crisis and rising security threats, compounded by the shifting geo-political landscape of the region - has the potential to alter its destiny one way or the other. The "headlines" that you see in Pakistan may not be a transient phase as you would like to believe. So, the events of the present (headlines) may matter a lot in the long-term.

Riaz Haq said...

Vineeth: "the ongoing "perfect storm" that Pakistan is going through - political instability, economic crisis and rising security threats, compounded by the shifting geo-political landscape of the region - has the potential to alter its destiny one way or the other"

Pakistan is a resilient nation....it has seen far worse situations than what you're referring to as "perfect storm".

https://www.riazhaq.com/2018/06/us-dod-1999-forecast-pakistan.html

Dire Post-911 Forecasts of Pakistan's Demise:

Many western analysts have forecast Pakistan's demise as Pakistan struggles to deal with terrorism at home. Among them is former President George W. Bush's adviser David Kilcullen.

"We're now reaching the point where within one to six months we could see the collapse of the Pakistani state, also because of the global financial crisis, which just exacerbates all these problems. . . . The collapse of Pakistan, al-Qaeda acquiring nuclear weapons, an extremist takeover -- that would dwarf everything we've seen in the war on terror today", said Bush Iraq adviser, David Kilcullen, on the eve of Pakistan Day in 2009 commemorating Pakistan Resolution of 1940 that started the Pakistan Movement leading to the creation of the nation on August 14, 1947. Kilcullen is not alone in the belief that Pakistani state is in danger of collapse.

Others, such as Shahan Mufti of the Global Post, argued in 2009 that Pakistan is dying a slow death with each act of terrorism on its soil.

Pakistan has defied many dire forecasts of doom and gloom since its birth. Some Indian and western writers and journalists present caricatures of Pakistan that bear no resemblance to reality. They portray Pakistan as a artificial and deeply divided failed state. What they fail to see is Pakistan is not one or two dimensional; it's much more complex as explained by Christophe Jaffrelot in his book "The Pakistan Paradox: Instability and Resilience".

Political, military, religious, ethnic, sectarian, secular, conservative and liberal forces are constantly pushing and pulling to destabilize it but Pakistan remains resilient with its strong nationalism that has evolved after 1971. Pakistan is neither a delusion nor owned by mullahs or military as claimed by some of Pakistan's detractors.

In a 2015 Op Ed for NDTV titled "What Modi Has Not Recognized About Pakistan", Indian politician Mani Shankar Aiyar recognized Pakistani nationalism as follows:

"..unlike numerous other emerging nations, particularly in Africa, the Idea of Pakistan has repeatedly trumped fissiparous tendencies, especially since Pakistan assumed its present form in 1971. And its institutions have withstood repeated buffeting that almost anywhere elsewhere would have resulted in the State crumbling. Despite numerous dire forecasts of imminently proving to be a "failed state", Pakistan has survived, bouncing back every now and then as a recognizable democracy with a popularly elected civilian government, the military in the wings but politics very much centre-stage, linguistic and regional groups pulling and pushing, sectarian factions murdering each other, but the Government of Pakistan remaining in charge, and the military stepping in to rescue the nation from chaos every time Pakistan appeared on the knife's edge. The disintegration of Pakistan has been predicted often enough, most passionately now that internally-generated terrorism and externally sponsored religious extremism are consistently taking on the state to the point that the army is so engaged in full-time and full-scale operations in the north-west of the country bordering Afghanistan that some 40,000 lives have been lost in the battle against fanaticism and insurgency".

Vineeth said...

"Pakistan is a resilient nation....it has seen far worse situations than what you're referring to as perfect storm.. Many western analysts have forecast Pakistan's demise.."

It wasn't I who called the current phase of Pakistan as a "perfect storm", but one or more of the DAWN columnists writing from Ground Zero. They are pretty much unanimous in their opinion that the situation Pakistan is going through at present is the most sustained period of political and economic instability in their memory. Rising attacks from militant groups from across both Afghan and Iranian borders adds to the potent mix.

Secondly, I think you were reading too much into what I said. I didn't say Pakistan would collapse or descend into civil war due to the current crisis. I merely meant that this could be an inflection point for the country - one that may turn out to be a catalyst for altering the destiny of the nation for better or for worse.

Also, do not put too much trust in what you call "resilience" to save the day. From what I understand, whenever Pakistan faced an acute economic crisis in the past, there was a helping hand (mostly from US) in the form of debt relief and financial aid. This was the "resilience" you saw during the years of Cold war, Afghan Jihad and the later US occupation of Afghanistan. Pakistan did not get out of an economic crisis on its own steam before. By contrast, the country seems to be pretty much on it own at the moment. While US does not seem to be in a mood to indulge Pakistan with freebies, Chinese seem to be hesitant in giving debt relief or financial aid as well. A change in the geo-political situation that makes Pakistan more relevant to US or China than it is at the moment (like a new American war in the neighbourhood - say Iran) may alter its fortunes yet again, but that remains a big IF for now.

Riaz Haq said...

Who owns Pakistan’s digital wallet throne? - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2024/07/15/who-owns-pakistans-digital-wallet-throne/


In 2008, a seismic shift occurred in Pakistan’s financial services landscape with the introduction of Branchless Banking (BB). This innovation sparked a digital revolution, reshaping how millions of Pakistanis access and use financial services. By the end of 2023, this transformation had reached new heights, with BB accounts soaring to 114 million—an 18.1% increase from the previous year. Even more striking, active accounts surged by 50.9% to 64.1 million, underscoring the growing adoption of digital financial solutions.

At the heart of this digital finance boom are two titans: Telenor Bank’s Easypaisa and Mobilink Bank’s JazzCash. These digital wallets have become household names, each carving out a significant portion of the market. While JazzCash leverages its vast customer base and market reach, Easypaisa, as a pioneer, boasts an extensive network of agents and merchants. Their rivalry not only fuels innovation but also raises a compelling question: In this rapidly evolving landscape, who truly leads the digital wallet revolution in Pakistan?

Both companies claim market leadership. VEON’s 2023 annual report states, “JazzCash was the largest domestic fintech platform and the most popular mobile fintech application in Pakistan.” Conversely, Telenor Bank’s annual report asserts, “The bank continued to solidify its position as a leading player in Pakistan’s digital financial sector in 2023.”

Given these competing claims, how can we determine which company truly leads the market?

History of Easypaisa and JazzCash

The advent of branchless banking in Pakistan can be traced back to the mid 2000s. We had Tameer Bank (Now rebranded as Telenor Bank) which was suffering from high delinquencies and was looking for a way out. As fate would have it, SBP was also looking to introduce the branchless banking regime in the country.

Riaz Haq said...

JazzCash transforms 350,000 businesses’ smartphones into POS machines - Sponsored - DAWN.COM

https://www.dawn.com/news/1853507

The fintech platform introduced Tap-Pay for Business, allowing businesses to receive payments from contactless debit or credit cards or other smartphones with a simple tap.

JazzCash, Pakistan’s leading fintech platform, has launched its latest feature, Tap-Pay for Businesses, enabling over 350,000 businesses across the country to accept payments through their Android smartphones. This cutting-edge feature allows businesses to seamlessly receive payments from any contactless debit or credit cards or another smartphone with a simple tap on the businesses’ NFC-enabled device.

The launch closely follows JazzCash’s recent introduction of the Tap-Pay feature for customers, which allows customers to make payments directly from their phones. Together, these features will help establish an end-to-end contactless payment ecosystem in Pakistan.

Murtaza Ali, president of JazzCash, said, “Our goal is to empower both customers and businesses. With Tap-Pay, we aim to enhance Pakistan’s payment ecosystem with innovative solutions that are not only relevant but also accessible to all. This is a significant milestone as we continue to lead the way in digital financial inclusion and redefine how small businesses manage transactions.”

As of Q3 of FY 2023-24, over 47 million debit and credit cards are in circulation in Pakistan, and the State Bank of Pakistan (SBP) reported card purchases on POS machines totalling Rs394 billion during the same period. By enabling businesses using JazzCash to tap into this market, the fintech platform is opening new revenue streams for businesses and fostering greater financial inclusion.

The introduction of the Tap-Pay for Businesses feature has been made possible through a strategic collaboration with Mastercard, technology partner Wizzit Holdings, and acquiring partner Bank of Punjab. These partnerships have been crucial in developing the infrastructure required to bring this innovative feature to market.

Riaz Haq said...
This comment has been removed by the author.
Riaz Haq said...

APIs for IDV key to digital transformation in Pakistan and Iran

https://www.biometricupdate.com/202408/apis-for-idv-key-to-digital-transformation-in-pakistan-and-iran

Pakistan and Iran both have been making strides towards digital transformation, with their national initiatives playing a crucial role. In Pakistan, the National Database & Registration Authority (NADRA) recently launched the beta version of Nishan Pakistan to empower startups and entrepreneurs by leveraging the country’s digital identity infrastructure. Through an application programming interface (API) authentication gateway, Nishan Pakistan provides secure, contactless biometric verification that enables business entities to easily incorporate themselves into NADRA data. This initiative is expected to revolutionize the market as it opens up diverse application areas ranging from customer identification to creating new markets within the country.

Similarly, Iran’s authentication API, Unique Identification (U-ID) platform, which was developed by Binesh Houshmand Nasl Phoror, is at the forefront of digital identity and biometrics technology. In addition, it serves as a secured digital identity platform for Android and iOS to have immediate digital authentication that has been made with high precision and accuracy. Its application has been widespread within Iran’s law enforcement community, evolving into one of the most important components of the national digital infrastructure. Both platforms highlight the growing significance of digital identity in driving economic growth and societal transformation respectively in their respective countries.

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Nishan Pakistan
Launched by the NADRA, Nishan Pakistan is an innovative platform aimed at supporting entrepreneurial ideas and providing safe biometric authentication services. The program functions as a hub for all digital activities in the country, including desktop and contactless biometric verification linked to data acquisition. To address such issues, Nishan Pakistan provides an API gateway and sandbox environment, which significantly facilitates its integration into existing business systems. It is still in beta testing and the user acceptance phase, with encouraging feedback likely to boost its uptake across the expansive digital market of Pakistan.

Pakistan and Iran’s UID
By leveraging biometric data, Iran’s UID service and Pakistan’s Nishan platform both aim to enhance security and expedite identity verification. These initiatives offer secure and efficient authentication services to the corporate and government sectors and are intricately connected to the corresponding national digital infrastructures.

As for Nishan Pakistan, it works out an inclusive API gateway that backs up multiple biometric verification options, including contactless biometric verification; however, UID in Iran stresses the technology of liveness detection in its facial recognition on online background, especially in law enforcement situations. Unlike UID’s application, which is concentrated on law enforcement and government agencies, Nishan Pakistan’s approach is more API-driven for businesses and startups to be able to facilitate wider adoption while ensuring convenience, whereas UID’s application is more centralized. Additionally, Nishan Pakistan aims to enhance user experience through easy integration. with the existing systems, while UID focuses on offline authentication through advanced encryption techniques catering to different user needs, thus indicating a divergence between accessibility and application scope.

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Digital identity platforms Nishan Pakistan and Iran’s UID are both two early-stage programs that are on their way to becoming digitally transformed. These projects may still be inexperienced; however, they could contribute significantly towards security improvement, economic development, and global digital public infrastructure.

Riaz Haq said...

USF Invested Rs. 79 Billion in Rural Telecom Expansion in Last Five Years


https://propakistani.pk/2024/07/30/usf-invested-rs-79-billion-in-rural-telecom-expansion-in-last-five-years/

The Universal Service Fund (USF) has launched 85 projects worth Rs. 79.1 billion in the last five years to expand telecommunication services to rural, remote, and underserved areas of Pakistan.

According to a document seen by ProPakistani, in the last five years, USF has focused on providing 3G/4G services, launching 67 projects worth Rs. 51.4 billion. This effort has resulted in the installation of 2,600 telecom towers, covering 922 kilometers of highways and motorways, and connecting 27 tourist destinations across Pakistan.

USF’s efforts have made a significant impact, serving 24.2 million people in over 12,600 mauzas. The organization has also completed 18 optical fiber cable projects worth Rs. 27.7 billion, laying 10,260 kilometers of fiber to connect more than 926 union councils and towns.

According to the USF, the expansion of telecommunication services has far-reaching implications for the country, enabling greater connectivity and access to information. USF’s initiatives have bridged the digital divide, bringing modern communication services to previously unserved and underserved areas.

Through its projects, USF aims to promote digital inclusion and socio-economic development in Pakistan. By providing reliable and high-speed internet access, USF is empowering communities and driving economic growth in the country’s most remote and rural areas.

Riaz Haq said...

Visa’s Leila Serhan says Pakistan presents significant opportunity for digital payments


https://www.thenews.com.pk/print/1234879-visa-s-leila-serhan-says-pakistan-presents-significant-opportunity-for-digital-payments


KARACHI: Senior Vice President and Group Country Manager for North Africa, Levant and Pakistan (NALP) at Visa Leila Serhan highlighted the importance of cybersecurity measures in promoting the growth of digital payments in Pakistan during an interview with The News.

Following are excerpts of her conversation:

Q: What initiative is Visa taking to safeguard users and support partner banks to combat fraud and cybercrime in Pakistan?

A: Cyber security is a top priority for anyone in the financial services industry, especially for Visa. We provide cutting-edge artificial intelligence-powered risk and fraud management solutions to our users and partner financial institutions, which greatly assist in every step of the transaction process.

The technologies like tokenization not only enhance user experience but also strengthens security by converting the 16-digit card number into a token, significantly improving security. Visa aims to introduce tokenization technology to all its partners and the entire ecosystem to safeguard consumer data.

In Pakistan, security and fraud issues, such as social engineering, are common when making digital payments. Therefore, there is a need to educate users not to share their online transaction processing data or card information via email. Furthermore, the user card verification value is confidential and should not be shared with anyone.

Visa recently announced a strategic partnership with 1Link, the country’s largest payment service provider, to simplify remittances in the country and promote digital transactions. The partnership involves integrating the Visa Alias Directory Service within the 1LINK network to streamline incoming remittances, enhance user experience and protect sensitive payment credential information.

Remittances are crucial for the Pakistani economy, as the country is one of the top 10 remittance-receiving nations in the world, according to World Bank data. Visa has simplified the remittance process, allowing individuals whether in the United Arab Emirates, Saudi Arabia or any other market to send money back home to their parents or family using a mobile number. The Visa Alias directory facilitates fast and secure transactions, and users can conveniently send and receive money directly from their mobile phones.By providing a seamless user experience and ensuring convenience, security, and cost-effectiveness in remittance transactions, efforts are made to discourage the use of illegal remittance flows to the country. This is one of our key objectives.

Q: What efforts is Visa making to increase the acceptance of contactless payments by small businesses?

A: We are collaborating closely with banks and other stakeholders to offer customized financial products and low-cost acceptance solutions, enabling small and medium enterprises (SMEs) to accept payments in a cost-effective manner. Tap-to-phone is a key part of our strategy, and we aim to expand the reach of small and micro enterprises able to accept digital payments by 10 times. We are forming numerous partnerships to promote financial literacy, expand small businesses and enhance consumer financial inclusion.

Q: How does Visa collaborate with government entities like the State Bank of Pakistan?

A: We have had a very positive dialogue with the State Bank of Pakistan. It is great that there is an active dialogue and partnership between the government and companies like Visa in the private sector. We constantly discuss how to improve the consumer experience in Pakistan, both domestically and internationally.

Riaz Haq said...

This e-banking platform is narrowing Pakistan's financial gap | World Economic Forum

https://www.weforum.org/videos/edisonalliance-pakistan/

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https://www.sbp.org.pk/Finc/AMAscheme.html

Through the Asaan Mobile Account (AMA) platform, any Pakistani holding a valid CNIC can open a bank account digitally in any AMA participating bank, from anywhere, at any time by using the SIM of any mobile operator. The scheme allows individuals to access AMA platform using a short code i.e *2262# and make transactions, through their basic/smart mobile phone without the need for internet connectivity.

Asaan Mobile Account (AMA) platform is a revolutionary initiative undertaken by State Bank of Pakistan (SBP) and Pakistan Telecommunication Authority (PTA), in collaboration with branchless banking (BB) providers, telecom operators and other development partners. The AMA platform has been launched under the National Financial Inclusion Strategy (NFIS) that aims to facilitate general masses, especially the low income segments, to digitally open their BB accounts and use the available financial services in a swift, easy and affordable manner.

Riaz Haq said...

Chinese firm to invest $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over a period of 8 to10 years.

https://dailytimes.com.pk/1223991/chinese-firm-to-invest-2-billion-in-pakistan-for-deployment-of-optical-fiber/

According to a Gwadar Pro’s report, the cable will be laid from Karachi to Peshawar along the Main Line-1 (ML-1).

Pakistan Railways has inked an agreement with the company Sunwalk Ltd. to allow it to deploy optical fiber cable.

Pakistan Railways has stated in a statement that the Chinese company has deposited Rs205.60 million in advance.

A Pakistani company was also allowed the same facility, which has deposited Rs130 million in advance, Pakistan Railways said.

The agreements are for three years, which could be extended, it added.

CEO of Pakistan Railways Amir Ali Baloch signed the agreements on behalf of Pakistan Railways.

According to an earlier statement of Pakistan’s Ministry of Information and Technology, Sunwalk intends to invest up to $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over 8-10 years.

The company has already acquired a Telecommunication Infrastructure Provider (TIP) licence in Pakistan, and has also invested $5 million so far, according to the statement.

Freight Rail: Pakistan can be a beneficiary of BRI’s economic fortunes as Chinese companies are proposing an extension of China-Europe

Freight Rail from Kashgar, China inland city to Gwadar, port city of Pakistan.

“We expect there can be a rail network from Kashgar to Gwadar as it will benefit both China and Pakistan,” said Li Tao, Publicity department of China-Europe Railway Express Xi’an Assembly Line, according to Gwadar Pro.

During interaction with Pakistan’s media delegation in Xi’an, Li said that logistics between the two countries relys on a route from Kashgar to Pakistani cities through road transportation, but such bilateral trade volume driven by roadways is low and scanty.

Compared to rail, road transportation is quite expensive, difficult and slow due to traffic congestion and other road-related hiccups.

Most of Chinese companies are eager to see expansion of China-Europe Freight Rail from Kashgar to Gwadar, he further said.

“The Belt and Road Initiative (BRI), introduced in 2013, bolstered the China-Europe freight train service. The initiative enhanced trade and connectivity between China and countries along the ancient Silk Road, including Europe.

Consequently, the China-Europe freight train service has become a critical part of BRI, facilitating trade and fostering economic ties between the two regions,” he mentioned.

According to China State Railway Group Co., Ltd (China Railway), the freight train service network currently reaches 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries, covering almost the entire Eurasian continent.

Moreover, the trains have transported more than 1.08 million twenty-foot equivalent unit (TEU) containers of goods this year, up 11 percent yearly.

Riaz Haq said...

Pakistan law proposed to transform digital identity system and governance | Biometric Update

https://www.biometricupdate.com/202412/pakistan-law-proposed-to-transform-digital-identity-system-and-governance

Key features of the Act
The construction of a national digital identity system is a key component of the Act, which intends to provide every Pakistani citizen with seamless access to important services. This digital identity system will include a variety of services, such as birth certificate renewals, educational records, health records, and digital wallets, to enable further digital interactions.

Under the Act, the NDC and PDA will create a comprehensive digitization master plan that will serve as the foundation for sector-specific digital strategies. The plan will be made public to engage the private sector, which is expected to drive and benefit the most from the digitization agenda.

Benefits, privacy, and accountability
The Digital Pakistan Act is designed to transform public service delivery by removing long queues and bureaucratic delays. Every citizen’s digital identity will be stored in an online database, and all assets will be available through digital wallets to avoid exhausting delays for services such as degree attestation and passport applications by combining them into a single platform.

The proposed digital infrastructure will empower data interoperability, allowing for smooth communication among organizations, according to the government. For example, property transactions will be automatically updated by tax authorities FBR, and healthcare providers will have secure access to patient records through digital identity standardized channels with a strong emphasis on data privacy and security.

On the economic front, the program aims to foster a cashless economy leveraging digital wallet technologies to formalize the informal economy, increase transparency, and improve government tax collection. Citizens will also profit from creating digitized financial records, which will make it easier to acquire bank loans and government incentives.

In addition, the Pakistan PDA would prioritize the implementation of plans to digitize Pakistan’s economy and governance to increase efficiency and enable paperless governance across all sectors.

The Act draws inspiration from successful digital transformation strategies in nations such as the United Arab Emirates, India, Estonia, and Singapore, while avoiding worries about mass surveillance. Officials have stressed their strong commitment to data privacy and security. Digital rights organizations will be actively involved in addressing any issues and ensuring citizens’ rights are respected. This ambitious effort has received significant funding from a $78 million World Bank project called the Digital Economy Enhancement Effort (DEEP). Implementation of the Act’s provisions is expected to commence in January.

Riaz Haq said...

Pakistan set to experience internet speed boost with new undersea cable


https://tribune.com.pk/story/2517994/new-undersea-cable-to-boost-pakistans-internet-speed

Pakistan is set to benefit from a significant upgrade to its internet infrastructure with the installation of a new undersea cable connecting the country to Africa.

The 45,000-kilometre cable, part of the 2Africa Pearls project, is expected to enhance Pakistan's internet speeds and reliability once it goes live in the coming days.



The cable, which boasts a capacity of 180 terabits per second, is part of a broader effort to improve connectivity between Africa, the Middle East, and South Asia.

Pakistan is one of 33 countries involved in the 2Africa project, which includes 46 landing stations across the globe.

The cable is expected to double the country’s digital bandwidth, providing much-needed relief to users struggling with slow internet speeds, Express News reported.

The new cable is set to address Pakistan's persistent internet speed issues, particularly affecting platforms such as Facebook, WhatsApp, and Instagram.

Currently, the country relies on around 8 terabytes of bandwidth from existing cables, which has not been sufficient to meet growing demand for fast internet. With the additional 24 terabytes of bandwidth from the new cable, users can expect smoother online experiences, especially for social media apps.

In recent months, slow internet speeds and frequent outages have led to frustrations among Pakistan's internet users, particularly affecting the freelancing community.

The increased reliance on Virtual Private Networks (VPNs) to bypass content restrictions has also contributed to slower speeds, according to the government.

Pakistan's digital capacity is expected to nearly double next year with the addition of four more major internet lines, including those for 5G services.

Recently, Minister of State for Information Technology, Shaza Fatima, acknowledged that the country's internet speed does not meet international standards.

The issue of slow internet speeds was also raised in the National Assembly, where the Pakistan Peoples Party (PPP), a coalition partner, expressed strong discontent.

Member of Parliament Shazia Marri criticised the government's Digital Nation Billhighlighting the contradiction between claims about digital development and the reality of inadequate internet speeds.

Although Pakistan Peoples Party (PPP) has been buttressing the Pakistan Muslim League-Nawaz's (PML-N) government in the centre, it finds the latter's policies shorn of a vision to tackle the menacing problems of climate change and granting digital rights to the citizens.

Bilawal critiques govt over digital rights

PPP Chairman Bilawal Bhutto Zardari, while addressing the Sindh University's Convocation in Jamshoro on Monday, fired a broadside against the government, urging the youth to throw their weight behind him for securing their digital rights.

Riaz Haq said...

Govt launches operations for 7th digital agricultural census - Pakistan - DAWN.COM

https://www.dawn.com/news/1882579

ISLAMABAD: The Pak­­istan Bureau of Statistics (PBS) on Wednesday initiated field operations for the country’s 7th Agricul­tural Census, employing digital tools to collect vital data for evidence-based policies aimed at sustainable farming and food security.

At a launch event in Islamabad, Planning Minister Ahsan Iqbal distributed tablets to trained enumerators, emphasising the role of technology in ensuring accurate and efficient data collection.

Ceremonies were also held in several other cities, including Lahore, Karachi and Peshawar.

The PBS has trained 7,686 enumerators and supervisors nationwide for this purpose. Data collection will take place over 40 days, from Jan 1 to Feb 10, 2025, which will be pivotal in shaping policies to address food insecurity and enhance agricultural resilience. The results are expected to be compiled by August.

This census, to be conducted in collaboration with federal and provincial governments, academia and related departments, aims to provide comprehensive insights into the country’s agrarian landscape.

Planning Minister Ahsan Iqbal described agriculture as the backbone of the economy, significantly contributing to GDP, exports and employment.

He noted that the data gathered from this census would play a vital role in shaping policies that tackle key challenges like resource management, crop patterns and food security. He further emphasised that the data would enable targeted support for the agricultural community, encouraging initiatives to increase productivity and enhance the welfare of farmers.

He reiterated the federal government’s commitment to ensuring that farmers across the country receive the resources and support they need for sustainable growth. He stressed that the 7th Agricultural Census was a historic step towards economic reforms and data-driven policymaking.

The minister also appreciated the modernised app­roach and centralised GIS technology for real-time monitoring. This will streamline data collection and analysis, enabling targeted interventions and effective resource allocation.

The initiative aligns Pakistan’s agricultural practices with global standards and seeks to enhance productivity and food security.

PBS’s focal person for the agriculture census, Sarwar Gondal, said that a decade overdue activity had been initiated by the bureau with its extensive network of 34 regional and 125 district offices.

Riaz Haq said...

Pakistan digital identity governance changes to bridge gaps, eliminate overlaps

https://www.biometricupdate.com/202501/pakistan-digital-identity-governance-changes-to-bridge-gaps-eliminate-overlaps

Pakistan’s journey toward a unified digital identity framework is proving complicated, with overlapping obligations and a fragmented system. The government plans to resolve these challenges with the strategic Digital Nation Pakistan law and the National Registration and Biometric Policy Framework (NRBPF). However, recent developments have revealed trouble coordinating efforts between the Ministry of ICT and Telecommunications and the Ministry of Interior.

The Digital Nation Pakistan initiative represents a transformative approach to governance. The government intends to provide seamless digital services by harnessing technology to create an interconnected infrastructure. However, uncertainties remain about its compatibility with current frameworks, such as the National Database and Registration Authority’s (NADRA) demographic registration and biometric systems. These issues arose during a meeting hosted by Prime Minister Shehbaz Sharif.

Similarly, a recent podcast by independent journalists highlighted challenges that can face newly passed laws based on the digital identity of every citizen in Pakistan. Exploring the weakest regulatory frameworks and accessibility gaps that obstruct NADRA’s extent. It emphasized the version where the citizens cannot access important services due to systemic incompetence, underscoring the urgency for reformation. The Digital Nation Pakistan initiative will achieve momentum, and presenting these real-world issues will be critical for its success.

Challenges in registration and biometric systems
One of the key concerns raised by the minister of state for information technology and telecommunications is the possibility of function duplication under the planned “Digital Nation Pakistan” law, The Express Tribune reports. NADRA, established in 2000, has long served as the backbone of Pakistan’s identity management. The Ministry of Interior promised the cabinet that any overlaps would be addressed in coordination with the Ministry of ICT. However, insufficiencies in its legal structure and limited outreach have made it challenging to effectively serve the entire population. Citizens are currently responsible for reporting vital incidents, which should ideally be managed by state authorities.

Moreover, differences between NADRA data and data held by union councils pose further issues. Biometric systems in the country operate autonomously, with no established regulations for data storage and sharing.

The CNIC chip, contained in Pakistan’s national digital identity cards, is also underutilized. Without accompanying infrastructure, individuals are forced to use multiple cards for various services, weakening the technology’s potential.

Riaz Haq said...

Google Pay to launch in Pakistan by March 2025 - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2025/01/13/google-pay-to-launch-in-pakistan-by-march-2025/

Service to enable Pakistani users to link their bank-issued debit and credit cards to Google Pay for seamless contactless payments

Google Pay, the global contactless payment platform, is set to officially launch in Pakistan by mid-March 2025, marking a significant milestone in the country’s expanding digital payment landscape.

According to sources, the rollout, confirmed by Google in November 2024, will be facilitated through collaborations with Visa, Mastercard, and leading local banks.

The service will allow Pakistani users to link their bank-issued debit and credit cards to Google Pay via the Google Wallet app, enabling seamless contactless payments at compatible terminals.

While the launch will focus initially on enabling basic contactless payments, the full suite of Google Wallet features, including loyalty cards and public transport passes, will not be available in the first phase.

Sources confirmed that preparations for the launch are well underway, with four to six prominent banks working closely with Visa and Mastercard to meet technical requirements.


Pakistan’s payment infrastructure is well-positioned to support the service, boasting 133,000 point-of-sale (POS) terminals, 99% of which are already equipped to accept mobile contactless payments, according to the State Bank of Pakistan.

Industry experts see Google Pay’s entry as a boost for Pakistan’s burgeoning digital payments sector, which has witnessed rapid growth in recent years. According to Profit’s analysis of data published by the State Bank of Pakistan, electronic payments now account for 9.3% of the total value of all transactions that take place in the country, a number that has doubled over the past two years.


The launch of a digital application like Google Wallet, which is compatible with payment cards of any financial institution will accelerate the expansion of digital payments through POS machines and e-commerce websites.

Riaz Haq said...

Mastercard joins foodpanda to fuel digital payments in Pakistan

https://ibsintelligence.com/ibsi-news/mastercard-joins-foodpanda-to-fuel-digital-payments-in-pakistan/

Mastercard has collaborated with foodpanda, a Delivery Hero-owned online food and grocery delivery platform, to boost digital payment in Pakistan and support the nation’s transition toward a cashless economy.

This collaboration with one of Pakistan’s delivery platforms highlights Mastercard’s commitment to advancing financial inclusion and strengthening the country’s digital ecosystem.

According to data from the State Bank of Pakistan, currency in circulation (CIC) in the country increased by 11.2% during the first half of 2024. By addressing the gap between cash and digital payments, Mastercard and foodpanda are positioned to accelerate digital payment adoption, enabling the growth of a cashless economy and fostering inclusive prosperity in one of the region’s most dynamic markets.

The partnership introduces initiatives designed to encourage the use of digital payment methods over cash on delivery (COD). By leveraging foodpanda’s extensive network, Mastercard will drive awareness and usage of secure, rewarding payment options for millions of consumers across the country.

“By combining our global expertise in seamless and secure payment technologies with foodpanda’s vast reach, we are making digital payments more accessible and convenient for consumers across the country. This collaboration marks a pivotal step in our efforts to drive the shift to digital payments in Pakistan and fuel the growth of the country’s digital economy,” said Muhammad Nana, Senior Vice President of Digital Partnerships, EEMEA, Mastercard.

“With high smartphone penetration and robust digital infrastructure, Pakistan is primed for rapid adoption of cashless solutions. Our partnership with Mastercard enables us to accelerate this transformation, turning COD users into active digital consumers. As we serve a significant percentage of the population, this initiative reflects our commitment to innovation and financial inclusion in untapped markets,” said Muntaqa Peracha, CEO, foodpanda Pakistan.

Additionally, Mastercard and foodpanda launched the Payment Switch initiative, which aims to convert COD users to online payments, boost Mastercard’s reputation as the preferred payment method, and drive customer trials through exclusive vouchers. This feature enhances conversion rates at the critical decision point of placing orders, thereby triggering a switch to online payments from COD via Mastercard.

Riaz Haq said...

Looking into the DEEP: Advancing Pakistan’s DPI | Biometric Update

https://www.biometricupdate.com/202501/looking-into-the-deep-advancing-pakistans-dpi

Pakistan is progressing toward a digitally empowered society, with initiatives such as the Digital Economy Enhancement Project(DEEP) playing a crucial role. According to a press release by the National Database and Registration Authority (NADRA), on January 23, in Islamabad, NADRA hosted a high-level World Bank delegation that included Martin Raiser, Vice President for the South Asia Region, and Najy Benhassine, Country Director for Pakistan. The conversation focused on DEEP, a transformative effort to strengthen Pakistan’s digital economy and digital identity systems.
DEEP, a World Bank-funded project coincides with the Digital Pakistan Policy and aims to transform how the government delivers services to citizens and businesses. The initiative aims to improve financial inclusion, ease access to government services, and promote economic prospects by developing strong digital public infrastructure (DPI).

The World Bank delegation praised NADRA’s progress in the implementation of DEEP, emphasizing its essential role in Pakistan’s digital transformation. The project is focused on creating responsible data-sharing protocols, digital authentication systems, and verifiable credentials. These components seek to increase accessibility, public service delivery, and social protection. This collaboration emphasizes the importance of international partnerships in accelerating national progress toward a digital economy.

Advancing DPI with DEEP
DEEP is a World Bank-assisted project to enhance the government’s capacity for digitally enabled public service delivery for citizens and businesses. While also building a more equitable economic framework by promoting an integrated, government-wide digital infrastructure. It promotes the creation of responsible data-sharing networks and strong digital authentication technologies, assuring secure and verified credentials.

The government’s goal with DEEP is to digitize governmental services, making them more accessible to citizens and companies. This transition is projected to drive economic growth, improve social protection systems, and expand financial inclusion, particularly among marginalized populations, Dawn News reports.

NADRA’s leadership
NADRA has played a significant role in Pakistan’s digital transformation under the DEEP initiative, reaching remarkable milestones such as the integration of crucial government services to allow citizens seamless digital access. NADRA is developing a single digital ecosystem to ensure efficient service delivery under the Digital Pakistan Policy. The World Bank’s support demonstrates global trust in this endeavor to improve infrastructure, data interchange, and digital identity for a more robust digital economy.

Digital Pakistan
The World Bank project DEEP aims to fill Pakistan’s digital gap, fuel economic growth, and ensure unbiased access to digital services for citizens. DEEP is aligned with the 2018 Digital Pakistan Policy, which emphasizes a comprehensive enterprise architecture and the integration of government databases. It focuses on broadband expansion, enabling policies, and legal frameworks to assist the digital economy. The project’s strategy is to improve public service delivery by modernizing digital public infrastructure, which includes a secure data exchange layer, digital wallets, and authentication methods. NADRA, the Ministry of Information Technology and Telecommunications (MoITT), and the Board of Investment (BoI) are key implementation agencies. DEEP, with financial and technical support from the World Bank, assists Pakistan in transitioning to a sustainable and inclusive digital economy by dealing with systemic obstacles and supporting digital transformation.