Tag: financial services

  • Pakistan to launch digital rupee to reduce printing and distribution costs

    Pakistan to launch digital rupee to reduce printing and distribution costs

    The government has opted to introduce a digital currency as a strategic move aimed at reducing expenses associated with currency printing and distribution.

    According to The News, this digital currency initiative is expected to contribute to the appreciation of the rupee’s value, bolster the overall economy, and facilitate extensive financial transactions.

    Much like the Chinese digital currency, where one unit is equivalent to one Chinese Yuan, the value of this digital currency will be pegged to the Pakistani rupee. The State Bank of Pakistan (SBP) will be the driving force behind this endeavour, offering government-backed guarantees similar to traditional currency notes. The SBP has already begun its efforts, enlisting the expertise of professionals for its development.

    To oversee this transformation, a specialised department known as the Central Bank Digital Currency has been established. This department is diligently assessing the cost benefits and feasibility of the digital currency to ensure seamless transactions upon its launch.

    The government’s objective is to gradually replace physical currency notes with digital currency while maintaining an 80:20 ratio, allowing currency notes to coexist as a backup in unforeseen circumstances.

    The adoption of digital currency will also yield significant savings by eliminating the expenses associated with printing, distributing, and disposing of physical notes. Additionally, every digital transaction will be meticulously documented, enhancing the effectiveness of monetary policy enforcement.

    Furthermore, digital currency holds substantial potential for advancing cross-border trade and investment and extending access to financial services for the unbanked population. The World Bank acknowledges its potential to enhance the financial industry’s efficiency, resilience, and reliability, with blockchain technology serving as one of the pivotal distributed ledger technologies supporting these advancements.

  • AIC warns of reputational damage to Pakistan’s investment appeal due to internet shutdown

    AIC warns of reputational damage to Pakistan’s investment appeal due to internet shutdown

    The Asia Internet Coalition (AIC), an industry association of major internet and technology companies, has released a statement urging the Pakistani government to consider the serious consequences of their recent actions on the people and economy of the country.

    The AIC has called for the immediate restoration of internet access in Pakistan. Jeff Paine, the Managing Director of the AIC, has expressed concern that the government’s actions will damage the country’s reputation as an investment destination, and has urged the government to focus on the opportunities presented by the digital economy to promote overall economic growth.

    More than one hundred prominent members of the Pakistani business community, tech entrepreneurs, and civil society have condemned the government’s use of partial and complete internet shutdowns, as well as targeted content and app blocking.

    These actions have been taken in response to recent nationwide protests. Tens of millions of Pakistanis rely on internet-dependent services for essential business activities, and by blocking or shutting down these services, the government is limiting civic space, creating economic uncertainty, and disrupting access to healthcare, emergency services, and financial services.

    The government’s decision to shut down mobile internet services across the country has resulted in significant revenue losses for mobile phone companies and online taxi and bike services. This decision was made in response to the arrest of former Prime Minister Imran Khan, which led to nationwide protests.

    As a result of the internet shutdown, online taxi and bike services have been unavailable for the past two days, causing inconvenience to commuters who depend on these services for transportation.

    According to sources in the Pakistan Telecommunication Authority, there are no plans to restore internet access in the country today.