Freelancers In Pakistan To Receive Payment Through PayPal 

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The Caretaker Federal Minister for Information Technology and Telecommunication Dr Umar Saif on Sunday announced that freelancers would now receive their payments through PayPal.

In a video message, he said that it had been a longstanding demand of freelancers to have access to PayPal for easier payment receipt in Pakistan.

The minister clarified, “While PayPal itself is not coming to Pakistan, an agreement has been reached where remittances would be channeled through PayPal via a third party.”“Under the newly devised program, freelancers will not need to open a PayPal account. Instead, individuals outside the country will make payments from their PayPal accounts, and the funds will be promptly deposited into the freelancers’ accounts,” the minister explained.He said that under the nation’s first space policy approved by the federal cabinet, international companies would be allowed to provide communication services through low-orbit communication satellites.Saif said that satellite communication technology was advancing rapidly and many private companies in the world wanted to provide communication services through low-orbit satellites.
“Satellites used to be geostationary, far away from the land. They are useful for broadcasting TV signals but communicating is difficult because there is latency,” he said.Saif said that communication services and internet services could be offered through low-orbit satellites, which were relatively closer. He said that there had been a lot of development in this regard in the private sector.“So now it has become possible for communication services in Pakistan to be provided through satellites and the private sector has this technology,” he said.He said the National Space Policy would enable private sector companies to “offer affordable internet services in Pakistan while enabling increased investment in our national space program”.
National Space Policy which will enable private-sector companies to offer affordable internet services in Pakistan, while enabling increased investment in the country’s national space program.He expressed confidence that 5G services in the country would be launched by July this year and 300MHz spectrum would be offered for auction.He said that before the launch of 5G services, the optic fiber network had to be enhanced. Currently, only 6,000 mobile towers are connected with the optic fiber of around 56,000 towers across the country.

Pakistan’s IT Exports Hit All Time High of $303Mn In December

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Pakistan earned USD 303 million by providing different Information Technology (IT) services in various countries during the month of December 2023, according to data released by State Bank of Pakistan.

This is the all-time high export value for any given month in the history of the country superseding March 2022 exports of USD 260 million.

This shows an increase of 16.9 percent as compared to USD 259 million earned through provision of Technology services during the previous month of this year. Moreover, Technology exports increased by 22.7 percent when compared with exports of USD 247 million in December 2023.

Overall, during the period from July 2022 to December 2023 the Information Technology exports increased by 8.9 percent to USD 1,455 million when compared with exports of USD 1,335 million during the corresponding period last year.

Pakistan faced worst economic crisis in 2023, says Human Rights Watch

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Pakis­tan faced one of the worst economic crises in its history in 2023 with poverty, inflation and unemployment soaring, jeopardising millions of people’s rights to health, food and an adequate standard of living, according to a report by the Human Rights Watch.

In its 740-page ‘World Report 2024’, made available on Friday, the HRW reviewed human rights practices in more than 100 countries, and observed that the insistence of the International Monetary Fund (IMF) on austerity and the removal of subsidies without adequate compensatory measures resulted in additional hardship for low-income groups in Pakistan.

Pakistan & Dubai sign over $3bn investment pact

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Pakistan and Dubai have inked a more than $3 billion investment pact in diverse fields including cooperation in railways, economic zones, and infrastructure development.

The agreement was signed on the sidelines of the World Economic Forum in Davos by Minister of Communication, Railways, and Maritime Affairs Shahid Ashraf Tarar and Dubai’s Chairman of Ports, Customs and Free Zone Corporation (PCFC) Sultan Ahmed bin Sulayem.

The cooperation covered the development of a dedicated freight corridor, multi-modal logistics park, and freight terminals, the Ministry of Railways said in an official statement.

The Dubai Port (DP) World will work on infrastructure development at Qasim International Container Terminal which is Pakistan’s leading trade gateway and plans to develop an economic zone near the terminal.

Both governments have signed two inter-governmental framework agreements to strengthen their relations in the marine and logistics sectors, including the potential establishment of a “Dedicated Freight Corridor” and “Economic Zone” near Karachi.

The DP World will act on behalf of the Dubai government, while Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistani government, for the development of the projects.

The rail-based Dedicated Freight Corridor is planned to run from Karachi Port on the Arabian Sea, passing through Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 50 km away.

Weekly SPI surged by 0.34%

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Pakistan’s weekly inflation rose for the fourth consecutive week, with the Sensitive Price Indicator (SPI) for the Combined Group increasing by 0.34% WoW during the week ended January 18, 2024.

Moreover, the SPI increased by 44.64% YoY when compared to the corresponding period from last year.

Last week, SPI for the Combined Group rose by 1.36% WoW.

According to data released by the Pakistan Bureau of Statistics (PBS) the Combined Index was at 319 compared to 317.92 on January 11, 2024, while the index was recorded at 220.54 a year ago, on January 19, 2023.

Gold prices in Pakistan decline for second consecutive day

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Gold prices in Pakistan continued to decline for the second consecutive day after the rupee made massive gains against the dollar on Tuesday. 

According to data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold (24 carats) decreased by Rs2,200 per tola and Rs1,887 per 10 grams to settle at Rs205,000 and Rs175,754, respectively.

Meanwhile, the price of the yellow metal increased for the second time by $17 to settle at $1,929 per ounce in the international market today.

Pakistan vows to fulfil IMF promises after averting default threat

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Prime Minister Shehbaz Sharif said Wednesday that Pakistan would fulfill its commitments made to the International Monetary Fund (IMF) to secure a short-term financing deal, helping the cash-strapped nation avert a default in the near future.

A staff-level agreement on the $3 billion stand-by agreement (SBA) was reached between the local authorities and the IMF team, with the lender’s executive board to give final approval on July 12.

The economy has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt, while months of political chaos have scared off foreign investment.

Power sector circular debt tops Rs2.64tr

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The power sector circular debt has reached a staggering amount of Rs2.646 trillion by the end of May 2023, registering an increase of Rs394 billion from July 2022 to May 2023, according to a report by the Ministry of Energy.

The mounting debt has become a major concern for the government and power sector policymakers, as it indicates monthly inefficiencies in the energy system, particularly in generation and distribution, resulting in an additional burden of Rs35.82 billion ($132.2 million) each month.

This comes despite the government’s implementation of a base tariff increase for electricity last July, following pressure from the International Monetary Fund (IMF), which demanded tariff measures to reduce the debt, rejecting the notion of bridging the gaps in power holding companies.

Despite a significant tariff hike of Rs7.9 per unit in July 2022, the circular debt continued to rise, as underlying structural issues in the sector remained unaddressed, leading to a substantial financial burden on loyal power consumers, amounting to billions of rupees every month.

The data reveals that the cumulative debt volume stood at Rs2.253 trillion by the end of the fiscal year 2021-22, which ballooned to Rs2.646 trillion by the end of May 2023.

Meanwhile, payables to power producers surged by Rs420 billion to Rs1.771 trillion during these 11 months. The state-owned generation companies (GENCOs) also saw their payables to fuel suppliers rise from Rs101 billion to Rs110 billion during the same period.

However, a positive development was observed in the amount of debt parked in Power Holding Limited (PHL), which decreased by Rs35 billion to Rs765 billion from the previous figure of Rs800 billion recorded at the end of June 2022.

The inefficiencies of power distribution companies (DISCOs) have emerged as a significant burden on the financial health of the power sector, primarily due to their high losses and low bill recoveries.

These shortcomings in power transmission and distribution are impeding the sustainable provision of energy services, resulting in elevated energy prices and amplified business costs.

During the eleven-month period, the power distribution companies (DISCOs) incurred losses and inefficiencies, along with non-recoveries of bills, contributing Rs374 billion to the circular debt, accounting for 95% of the total addition of Rs394 billion to the overall debt stock.

DISCOs’ losses and inefficiencies amounted to Rs125 billion, while low bill recoveries added Rs249 billion during July-May 2022-23.

The breakdown of circular debt additions further shows that Rs87 billion was attributed to the payment of interest to power producers on delayed payments, with the government currently owing Rs1.77 trillion to these generators.

Additionally, Rs58 billion was added to the circular debt due to interest payments to banks on the Rs765 billion parked in a power holding company.

To address this issue, the government has imposed a debt servicing surcharge of Rs3.23 per unit, passing on the cost of inefficiency to power consumers.

Furthermore, Rs171 billion was included in the circular debt due to delays in the recovery of generation costs through quarterly and monthly fuel charges adjustments. An additional Rs57 billion was added to the debt stock due to non-payment by K-Electric.

Avanceon has secured a Multi-Million Dollar contract in Middle East region

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Avanceon Ltd (PSX: AVN) in a notification to the PSX, announced that Avanceon Automation & Control W.L.L Qatar, subsidiary of Avanceon Limited has been awarded a multimillion-dollar contract from a major municipality in the middle east region.

The objective is to improve the Drainage Network Operation System by enabling real time monitoring and control of assets at various locations. The operation system improvement will be achieved by sensing early warning of flood risk, blockages, infiltration, surcharging etc. from master SCADA station. Avanceon will be installing permanent monitoring and control equipment with RTUs and will extract power from the nearest local permanent or solar power source.

The contract valued at more than $10 million will see Avanceon enable real time monitoring and control of assets at various locations.

BOP bought Punjab Capital Securities from FPJM

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First Punjab Modaraba (PSX: FPJM) in a latest notification to the PSX has announced that it has sold its 100% shareholding in a wholly owned subsidiary namely Punjab Capital Securities (Pvt) Limited to The Bank of Punjab (PSX: BOP) at a price of Rs85.487 million. BOP is the parent bank of FPJM.