Day: May 22, 2024

Cordoba Logistics and Ventures Limited (PSX: CLVL) Wednesday said its associated company has entered into a share subscription agreement with Symmetry Group Limited. 'We have been informed by M/s. Finox (Pvt.) Limited, an associated company of Cordoba Logistics and Ventures Limited, that they have entered into a share subscription agreement with Symmetry Group Limited,' the company said in a notice to the Pakistan Stock Exchange (PSX). Symmetry Group Limited is a leading digital technology and experiences company that specializes in the transformation and digitalization of critical business functions with its expertise in digital strategy, transformation, artificial intelligence, digital commerce, data science, mobility, retail/ research and interactive marketing. Source: Pro Pakistani

Raqami Islamic Digital Bank Ltd. (RIDBL), one of five aspirants to the digital retail bank license under the Licensing and Regulatory Framework for Digital Banks, 2022 is thrilled to announce a strategic partnership with 1LINK, Pakistan's largest Payment Service Provider / Payment Service Operator. The signing ceremony took place at the 1LINK Office in Park Towers, Karachi and was attended by the senior management of both organizations, symbolizing their dedication to innovation with excellence. The leadership present at the occasion were Umair Aijaz, CEO RIDBL; Nadeem Hussain, Coach RIDBL; Mr. Najeeb Agrawalla, CEO 1LINK; Mr. Bashir Khan, COO 1LINK; Mr. Suleman Hasan, CCO and Company Secretary 1LINK; Mr. Javaid Sher Ali, Head of Engineering at RIDBL and Syed Abid Raza Rizvi, Head of Product and Pricing at RIDBL, along with other team members. A distinguishing feature of RIDBL will be its status as a Shariah compliant and purely digital entity, eschewing traditional brick-and-mortar branches in favor of a streamlined, mobile-first approach. Among the services set to be offered to RIDBL customers through this partnership are Interbank Funds Transfer (1IBFT) and 1BILL. In future, PayPak will also be added as part of the offering to customers. The collaboration will enable RIDBL customers to seamlessly transfer funds to over 32 banks and make payments to over 2,500 companies nationwide. Commenting on the partnership, Umair Aijaz, CEO RIDBL, said: 'We are excited to partner with 1LINK and bring cutting-edge digital financial services to our customers. This collaboration represents a significant step forward in our mission to redefine the customer journey and truly empower users of RIDBL's banking services with efficient and seamless multi-channel payment options.' Reiterating the same vision Nadeem Hussain, Coach RIDBL, said: 'The collaboration between RIDBL and 1LINK underscores the vital importance of advancing digital banking solutions. Together, we can leverage our respective expertise to drive innovation , enhance accessibility, and ultimately empower customers with unparalleled financial services.' Mr. Najeeb Agrawalla, CEO 1LINK, commented: 'The collaboration between 1LINK and Raqami Islamic Digital Bank represents a strategic alliance providing customized financial solutions to a wide range of customer segments. This strategic alliance marks the dawn of a new era of innovation and accessibility in Islamic banking, catering to the unique needs and preferences of our discerning clientele.' Mr. Bashir Khan, COO 1LINK, commented: 'This partnership represents a pivotal achievement in the banking sector, enabling Raqami Bank to pioneer innovation and deliver customized products and services to its customer segments utilizing 1LINK rails. It further highlights 1LINK's steadfast dedication to ongoing innovation, positioning it as the preferred partner for financial institutions aiming to elevate their digital solutions.' As RIDBL embarks on its journey to redefine the banking experience, it does so with a commi tment to establishing a fully shariah compliant digital bank with innovation and customer-centricity at its core. Source: Pro Pakistani

The federal government will prepare the budget for the upcoming fiscal year (FY25) in consultation with the International Monetary Fund (IMF). Sources told ProPakistani that talks are underway with the IMF for the preparation of the FY25 budget. Under the strict watch of the international lender, the government has been left with little choice but to continue stringent economic policies as dictated by the IMF. The lender is currently sharing its recommendation for the budget with the government authorities. The government will also confirm with each province their commitment to delivering the agreed fiscal surplus in support. The government's aim for FY25 will be to reach a general government primary surplus of one percent of gross domestic product (GDP). It is pertinent to mention here that Finance Minister Muhammad Aurangzeb will present the FY25 federal budget in parliament on June 7, 2024. Source: Pro Pakistani

The federal government wants Rs. 20 billion next fiscal year to not just enhance cybersecurity but also to regulate and better control social media across the country. With this, only social media companies with local offices in Pakistan will be allowed to operate, reported Express Tribune. The Ministry of IT and Telecom requested Rs. 20 billion for the Digital Information Infrastructure Initiative (DIII) in the 2024-25 budget. This request was submitted to the finance division for inclusion in the next fiscal year's expenditure. The IT Ministry has already received Rs. 15 billion for DIII in the current fiscal year through a technical supplementary grant. The DIII project has a total estimated cost of around $135 million (Rs. 38 billion). Most of this amount is being used this year, with the remaining funds requested for the next fiscal year. The government is of the view that the new technology will help regulate social media, curb its misuse, and thwart malicious campaigns. The government has alrea dy banned X (formerly Twitter) in Pakistan, although many, including government officials, access it with a Virtual Private Network (VPN). From what looks like almost a certainty next fiscal year, social media platforms will likely be instructed to establish physical offices in Pakistan. A legislative framework is being considered to formalize these regulations under the Pakistan Electronic Crime Act (PECA) 2016. Source: Pro Pakistani

The Commissioner, Specialized Companies Division, SECP, Mujtaba Ahmed Lodhi, has launched the NBFI and Modaraba Association of Pakistan's Year Book 2023, which contains vital information regarding the NBFI and Modaraba sector. The launch ceremony, held at the Association's office was attended by a large number of industry representatives. The Year Book indicates that despite its challenges, the NBFIs and Modaraba sector has shown significant improvement, particularly in terms of assets, profitability, dividend distribution and tax payments. The assets of the sector increased to Rs. 158,404 million in FY 2023 as compared to Rs. 142,918 million in FY 2022. However, the total equity of the sector decreased to Rs. 51,518 million in FY 2023 from Rs. 55,358 million in FY 2022/ the decline in equity was attributed to the departure of a few of the Modaraba members owing to the transformation in their business models. However, despite the reduction in equity, the sector's overall profitability reached Rs. 3,431 million in FY 2023 compared to Rs. 2,445 million in FY 2022 reflecting an increase of Rs. 986 million. Lodhi emphasized the need for NBFI and Modarabas to expand their role in order to effectively promote financial inclusion in Pakistan. He also urged market participants to focus on technological advancement, innovation, product diversification, capacity building, and high governance standards to ensure their role in the financial sector is further enhanced. Furthermore, he highlighted that there is a renewed interest in fintech-based business models, evident from the growing number of licensed activities. Citing the high demand for tech-enabled platforms and Islamic financial services in Pakistan, he encouraged NBFIs and Modarabas to embrace technology for delivery of financial services and access to underserved segments of the population. Earlier, Muhammad Shoaib Ibrahim, Chairman, NBFI and Modaraba Association of Pakistan welcomed the participants and presented key highlights of the industry. As the ceremony came to a close, awards for the best performance were distributed amongst members who exhibited extraordinary performances during the year. The SECP and the Association reiterated their commitment to working together to advance the growth and development of this important sector. Source: Pro Pakistani

Euronet Pakistan, the largest card processor in Pakistan and a global leader in payment processing and transaction services is realigning its strategic focus and will no longer pursue its PSO/PSP license for Bulk Transfers and Instant Credits. This decision and strategic realignment reflect Euronet's commitment and dedicated focus on expanding its card processing market footprint in Pakistan, increased focus on collaborations with banks and partners, and enhancing the accessibility and efficiency of banking and payment services, in line with the SBP financial inclusion strategy, by integrating its advanced global technologies and solutions to ensure superior and regulatory compliant services for clients and partners. While Euronet remains dedicated to delivering innovative financial solutions and adding value in the local payments landscape, it is the second company to re-strategize its plan to establish itself as a PSO/PSP entity for the designated services without affecting the current business services. Earlier, MobiDirect Pvt Ltd also changed its plan for setting up an E-commerce Gateway in Pakistan. Euronet Pakistan is the division of Euronet Worldwide, a US-based NASDAQ listed company that has been operating in Pakistan since 2010. It is driving over 70% of the POS volume and running debit and credit card programs and driving ATMs for the leading banks and financial institutions through its data center facilities in Pakistan. Source: Pro Pakistani