Pakistan Digitalisation Updates

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Public cloud services on the rise in Pakistan​

Cloud computing market in country expected to reach $1.5b this year

Shahram Haq

Public cloud is becoming increasingly important for businesses in Asia and Pakistan as it offers numerous benefits such as cost savings, scalability, agility and flexibility, said Umair Azam, Founder and CEO of Integration Xperts.

In an interview with The Express Tribune, Azam said that the cloud mindset is a way of thinking that emphasises the benefits of cloud computing and needs a shift in focus from the traditional IT infrastructure to cloud-based solutions that enable organisations to more easily adapt to changing business needs.

According to a report of IDC, public cloud spending in Asia-Pacific excluding Japan (APeJ) is expected to grow at a compound annual growth rate (CAGR) of 25.5% from 2019 to 2024, reaching $124.5 billion in 2024.

Another report of Gartner suggests that the public cloud services market in the Asia-Pacific region will grow by 23.7% in 2021 and reach $124.6 billion, up from $100.8 billion in 2020.

In Pakistan, the adoption of public cloud services is also on the rise. Allied Market Research, in its report, says the cloud computing market in Pakistan is expected to reach $1.5 billion by 2023, growing at a CAGR of 19.1% from 2017 to 2023.

“These numbers highlight the increasing importance of public cloud for businesses in Asia and Pakistan, as they embrace digital transformation and seek to leverage the benefits of cloud computing to enhance their competitiveness and drive growth,” remarked Azam.

Cloud computing provides organistions with the ability to rapidly scale resources up or down, as needed, allowing them to handle changes in demand more effectively.

According to an IDC study, organisations that use cloud computing are able to handle 2.5 times more application workloads than those that rely on the traditional IT infrastructure.

Talking about the security of public cloud, Azam cited a Forrester Research report which said that 80% of security breaches involving the public cloud infrastructure are caused by customer misconfiguration or mistakes.

“This shows that while cloud providers have strong security measures in place, organisations also have a responsibility to ensure their data is secure in the cloud,” he added.

Overall, the importance of public cloud services for businesses in Asia and Pakistan cannot be overstated, as it provides them with the ability to innovate, collaborate, and scale with ease, while reducing costs and improving security and reliability.

“Public cloud offers a pay-as-you-go model and the ability to scale resources up or down, as needed, which makes it easier for organisations to handle fluctuating workloads without having to invest in additional hardware or infrastructure. In contrast, private cloud requires organisations to invest in and maintain their own infrastructure which can be costly. Private cloud offers more control over data and infrastructure, which can be beneficial for organisations with strict security requirements.”

 

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NADRA launches ‘cutting-edge AFIS technology’ for biometric identification​

‘NADIR’ can quickly store the fingerprints and identify individuals for a wide range of purposes 'as a public good'

April 18, 2023

The National Database & Registration Authority (NADRA) has launched its cutting-edge Automated Finger Identification System (AFIS), branded as “NADIR”, for civil purposes.

This marks a significant milestone for NADRA, which has now joined the ranks of premier biometric identification technology providers worldwide.

NADRA is a trailblazer in the field of advanced digital technologies related to identity management, biometrics, border control, and e-governance. The organisation has consistently pushed the boundaries of what is possible in the realm of digital identity, its verification, and security, earning a reputation as a leader in the industry.

‘NADIR’ represents a major advancement in the field of biometrics, utilising the unique characteristics of fingerprints to establish a robust and reliable method of identity verification. Based on the Fingerprint Verification Competition (FVC), an internationally acclaimed benchmarking conducted in Italy, NADIR has achieved an impressive accuracy rate exceeding 99.5%.

Speaking during the launching ceremony, NADRA Chairman Tariq Malik said, “The right kind of innovation builds not only organisations or governments – it also builds countries. Indigenous development of AFIS is a groundbreaking development not only in the field of civil identification but in the pursuit of nation-building as well. With its advanced technology, we can now accurately and quickly store the fingerprints and identify individuals for a wide range of purposes as a public good, from immigration to border control to social services."

With NADIR's development, Pakistan has joined the league of nations that have developed their indigenous AFIS technology and is now set to offer its product in the international market to help countries improve civil identification, border control, and e-governance. The global market for biometric identification technology is mostly dominated by providers from developed countries like the USA, UK, Russia, Japan, France, Germany and others.

Overall, NADRA's indigenous development of AFIS technology represents a groundbreaking achievement, not only in the field of civil identification but also in the pursuit of nation-building. It underscores the organisation's commitment to innovation and further solidifies its position as a global leader in advanced identity management solutions.

 

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Chinese company to lay 16,000 km long fiber optic cable kicks off​

APP
May 19, 2023

A technology-based multinational private Chinese enterprise, on Friday kicked off a project to deploy 16,000 kilometers (km) long fiber optic cable to speed up digitalization and networking process in Pakistan. “Sunwalk Pvt Limited is focusing on fast deployment on concentrating on quality according to ITU-T Standards. We are always committed to the best services in Pakistan,” its Chief Executive Officer Tony Lee said while addressing at a ceremony.

Chief Business Officer Sunwalk Group Pakistan Afshaan Malik said despite the current economic situation in the country her company is committed to providing optic cable to the people of Pakistan keeping in view the Pak-China long-term Strategic Relationships. Afshaan said her company is in the process of issuing the ROW (Right of Way) from government departments so we can proceed with our work immediately because after getting the ROW we are planning to invest $100 million.

Her telecom group, she said already invested $ 5 million in Khuzdar (Baluchistan) where no commercial fiber was available. She maintained that being a technology-based diversified Chinese Group our main project was the deployment of optical fiber all over Pakistan, for the purpose Sunwalk acquired a TIP LICENSE from PTA in the year 2002.

 

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Digital and payment system in Pakistan: Future landscape​

Dr. Shamshad Akhtar
June 14, 2023

Pakistan is at a critical juncture of its journey of digital financial inclusion. It is critical that the Central Bank and the industry reflect and take stock of the country’s digital and real-time payment system. This reflection is important to identify challenges and opportunities that lie ahead and realize the full potential of the payments system.

RAAST, a state-of-the-art payment system, is the result of a four-year-long collaboration between the State Bank of Pakistan and Karandaaz Pakistan with support from the Bill and Melinda Gates Foundation. It is a major milestone in transforming the payment system and enhancing the financial markets outreach.

The capabilities and functionalities it offers are world class e.g., interoperability, open API based connectivity, real-time settlements, directory function and high throughput. All these aspects ensure that the cost of transactions would remain low thus allowing low value transactions and their swift settlement.

The leap that Pakistan is poised to take through RAAST is based on several factors. The country has high cell phone penetration (80%), high broad band usage (41%), and a regulator-supported system. Moreover, the 2022 Karandaaz Financial Inclusion Survey (K-FIS) reveals that financial inclusion in Pakistan has grown by 9 percentage points from 2020 to 2022. Further, SBP’s Annual Payment Systems Review for 2021-22 highlights a significant expansion in the digital payments ecosystem. Mobile phone banking surged by over 100% to 387.5 million transactions, while internet banking witnessed a 51.7% growth to reach 141.7 million transactions.

To-date, two use cases are fully launched – first the bulk payments i.e., one to many and second Person to Person or P2P payments. Regarding the first use-case, RAAST has routed all dividend payments made by the Central Depository Company (CDC). RAAST’s P2P module has processed over 132 million transactions worth PKR 2.6 trillion, registering over 31 million unique RAAST IDs.

As a next step, Person to Merchant or P2M payment module will be launched in few weeks. P2M will open new avenues and spur new business models bringing efficiency, cost effectiveness and security in financial transactions. Some examples include innovative initiatives such as interoperable QR codes and supporting services requiring payments on installments.

It is also crucial to remain cognizant of the challenges. First is the cost borne by the consumers making payments via credit or debit cards with vendors charging up to an additional 2.5% on each transaction to discourage the consumer from paying via cards. Recently, petrol stations across the country stopped accepting card payments as discontent between the oil marketing companies (OMCs) and the Government over payments increased.

Second, the merchants in general fear that accepting digital payments will bring them into the tax net. Formalization reduces opacity and enhances the agency of the state to deliver in several ways through properly structured incentives. Furthermore, it is crucial to focus on safeguarding mechanisms for preventing digital fraud and ensuring cyber-security. A key step towards this will be establishing a central fraud detection system integrated with RAAST.

There is ample global evidence that going cashless improves the size of the formal economy. Growing digital transactions attract innovative fintechs and digital financial services providers to offer sophisticated financial services.

Payment system such as RAAST is also the foundation for open banking. Data gathered through RAAST can support services such as credit scoring and enhance regional financial connectivity and cross border trade globally and with regional partners. A well-governed RAAST with requisite capability and agility to respond to the demands of innovation will be important in the journey towards universal digitization.

 

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SadaPay enables Apple Pay invoicing for freelancers in Pakistan​

SadaPay aims to provide ease for freelancers through new avenues.

SadaPay, a Pakistani Fintech company, announced that their SadaBiz freelancers will now be able to receive payments via Apple Pay.

Earlier this year, Sadapay had launched a business account — SadaBiz —tailored for freelancers which aimed to provide an avenue for global payments with no hidden fees.

The announcement came as part of SadaPay’s first ever SadaSummit held last Friday at COLABS. The event was attended by IT industry veterans, thought leaders in the freelancing ecosystem and early adopters of SadaBiz. In addition to the Apple Pay announcement, the agenda featured panel talks for the future of Pakistan as a global freelancing hub.

Freelancers in Pakistan face multifarious challenges despite the burgeoning tech talent. More specifically, freelancers do not have awareness about opportunities, lack training facilities, and access to the international market and getting paid from their overseas clients. Apple Pay makes it significantly easier for freelancers to access the international clients.

The press release stated, “Apple Pay’s user base, at 550 million, has surpassed PayPal’s 450 million. Not just that, but the payment volume via Apple Pay is four times greater than PayPal’s, and is growing at an exponential rate. The reach is massive, with over 2 billion iPhones globally equipped with Apple Pay.”