Economy
Digital Pakistan Vision and the Challenges
The world is going digital and countries hopping on the new platform are the ones reaping the benefits most out of it. Pakistani authorities have been working to achieve the goal but there are several challenges in acquiring a digital Pakistan.
Pakistan is among such fortunate countries where the youth population is 60% of the total population. This percentage of regular users of digital services such as digital payments or e-payments, internet access and professionals in smartphone world provide infinite opportunities to succeed in going digital.
It is the gigantic and innovative initiative taken by Prime Minister Pakistan to upgrade digital banking infrastructure and easing the conditions or requirements and exhausting paperwork to avail digital services such as e-payments, online transactions and the issuance of credit cards, and their use at Online stores i.e in-store shopping, Fuel fill-up at stations, online utility Bill payments and Universities Fee Payment Gateways, but unfortunately, such easy and instant payment facility is currently available to Elite Business class and involves too much Paperwork, guarantees and regulations.
Government needs to overhaul the whole banking infrastructure and encourage businesses, retailers, Fuel Stations, PIA, Railways ticketing, superstores, schools, and colleges to introduce payment gateways and banks should offer credit cards to businessmen and especially to government employees since they will use such services when they run short of funds, falling prey to illegal Interest-based lenders who squeeze them financially and socially.
These banks there other banks that are issuing credit cards such as HBL, MCB, ABL, Faisal Bank, Askari bank and JS banks. The average interest or Mark up charged 40% which is very high as compared to other countries
The innovative digital payments will remove their financial constraints and the funds will be utilized based on a credit limit for 45 to 51 days and the bills can be paid through salaries decreasing chances for collateral damage or any default.
It would be great to boost and promote digital services paving the way for International digital bigwigs i.e. Google, PayPal, Amazon, eBay, Yahoo, Alibaba Group, Alipay, Stripe and Apple to enter Pakistani financial markets specially the PayPal, eBay and Amazon are strongly required by Freelancers and authors to get their Payments processed.
At Present, only Skrill, Payoneer and Traditional IBAN/Swift code or wire transfers are available to Pakistan which is very costly, Time consuming having inflated fees of 10% to 30% plus Bank charges of local Bank to process the amount. On the other hand, our neighboring country India has reaped the benefits digital world as the world’s best companies i.e. PayPal, Amazon and Google are serving the country with their innovative digital products and services.
By giving access to these Digital Payment Giants, Pakistan will open doors for Foreign Direct Investment and it will also reduce the heavily demanded Paper currency as People avoid using cash and prefer to use their credit and debit cards at online stores, in-store shopping purposes.
Even Pakistan’s governance Model may go ahead with modernizing and upgrading the Reporting system, Complain Management, Receipts, and Payments, Public Sector spending through an electronic dashboard that will refresh automatically if any Development related or Public sector transaction takes place. Even governance could improve if governance Model is implemented by imparting pieces of training to Staff, Officers and Officials at the Federal, Provincial and District levels so that proper reporting channels may be built to ease the complicated process and ensure transparency.
The Sale and Purchase of properties and estate should be digitized and automated so that revenue records may reflect the history of Property owners to do away with any claim or objection. The Ownership certificates, Heirship certificates, Birth Certificates, Domicile, PRC and all other certificates should be generated online through developing software mobile applications of Android or ios devices that will reduce the process and improve the productivity of the Public sector Institutes.
The process of employees’ performance evaluation, superannuation and pension may also be automated so that the entire employment record will be available when they reach their point of promotion, superannuation or drawing pensions. The Personal IDs must be opened online through scale-wise Supervisors i.e. District Accounts Officers, Account Generals of Provinces and Accountant General of Pakistan so that trail may be available to track salary disbursements.
At Present, only Skrill, Payoneer and Traditional IBAN/Swift code or wire transfers are available to Pakistan which is very costly, Time consuming having inflated fees of 10% to 30% plus Bank charges of local Bank to process the amount
Furthermore, the process of voter lists should also be automated and Election Commission of Pakistan must make it available to all the citizens to register their vote when they reach at the age of 18 after getting their CNIC/Smart cards or Form B. This will enable district Election Commissioner Offices to enter the data online and consolidate the voter lists.
There should be a central directorate of all the departments so that they may have coordination on digital grounds especially the FBR, AGP, Finance Ministry and Departments, Establishment division, cabinet division, NAB and Intelligence Directorates. Digital Pakistan’s vision will have a great impact to attract Foreign Direct Investment, strengthening of Rupee against Dollar, stabilization of the economy and discouraging paper currency that usually falls heavy upon rupee and due to substantial pressure, the rupee gets devalued and inflation jumps up.
We are too excited after Tanya Aidrus and Baqar’s statements during Digital Pakistan Vision launch and they were very confident that their sacrifices of higher paychecks for the sake of the country are highly appreciable but they will be facing resistance from the stakeholders who have been misusing the manual system for decades and it is an uphill task to compel such elements to adopt and use this digital Endeavour which will choke their corruption stream but may streamline things for the common people.
The other resistance will be from the provinces where PTI is on opposite Benches especially in Sindh and Baluchistan. It will be a big ask and the challenge that the initiated by IT and Telecom Ministry will achieve its desired objectives given the challenges of shortage of IT Skilled Staff and messed up the bureaucratic structure.
The government should make digital literacy a compulsory part in every ministry at the Federal, provincial and district levels by setting up IT Skill development centers to train the supervisory and office staff so that digital communication infrastructure may be implemented.
There is no dearth of talent in our youth but they need support and sponsorship to do wonders. Moreover, the Government should establish a venture capital firm to support, incubate, accelerate and fund the Startups that will ultimately develop and accelerate the mushrooming growth of big startups.
The entrepreneurship courses must be introduced with help of SMEDA, LUMS, IBA Karachi, IBA, Sukkur, SZabist, NUST, FAST, COMSATS, Virtual University and SDPI so that entrepreneurs may learn to launch their startups successfully to conquer the digital world.
The Startups such as Careem, Bykea, and Rozee.pk are some the great examples of successful Startups. Globally, the Youth after getting their education, start their businesses to create employment but in Pakistan youth after passing Graduation and Masters, start hunting for a job. That is why Pakistan has a high level of Unemployment as youth avoid entering entrepreneurship since they lack skills, training, and financial resources.
Rupee against Dollar, stabilization of the economy and discouraging paper currency that usually falls heavy upon rupee and due to substantial pressure, the rupee gets devalued and inflation jumps up
Punjab IT Board has done a tremendous job by incubating, funding and accelerating startups in the public sector under the Plan9 and PlanX programs but it should be followed by all the Provinces so the proper Startup culture could be developed. Higher Education Commission, IT Boards, Technical Education, Intermediate education boards should promote digital Pakistan vision by introducing governance, payment solutions and fund the Ideas at School and college level.
It is a good sign that Online shopping Sites have experienced a mushrooming growth but mostly they accept the traditional Cash On Delivery Model (COD) which often causes losses if the customer returns the product or unavailable or Unwilling to receive the product.
E-payments ensure that the product is shipped to the target buyer or customer who needs it. Though some Online shopping sites such as Popular Daraz.pk and Yayvo.com have started accepting Credit/Debit Cards issued by Pakistani Banks but still the number of transactions is very low owing to hassles involved in getting credit cards from the banks.
At present, Only a few banks are issuing Credit Cards with Online Transactions and Point of Sale (POS) Transactions that include Standard Chartered Bank, unfortunately, limited to big cities such as Karachi, Lahore, Islamabad, Other one include Bank Al Falah which issues Credit Cards on quick processing lasting for 10 to 20 days.
Silk Bank is also the favorite bank of many customers who are interested in digital Transactions. Silk Bank offers a wide range of Credit Cards as per Income Levels of customers. UBL is also offering credit cards but it has too many conditions and terms.
Besides, these banks there other banks that are issuing credit cards such as HBL, MCB, ABL, Faisal Bank, Askari bank and JS banks. The average interest or Mark up charged 40% which is very high as compared to other countries. The government especially state Bank of Pakistan must direct the public and Private banks to lower the markup ratio and ease the conditions to avail this facility especially suited to salaried class and Businessmen.
In Big cities, credit cards are issued instantly by Commercial Banks to the salaried Employees of Government and Companies but in small cities, the untrained and local managers avoid issuing credit cards to customers since it involves risks of recovery or payment of credit Bill.
I have personally visited many banks where I maintain my bank account, but regrettably, all the managers expressed their inability or forbade to get Credit Cards since it is very costly and you cannot be issued credit cards in small cities.
Punjab IT Board has done a tremendous job by incubating, funding and accelerating startups in public sector under the Plan9 and PlanX programs but it should be followed by all the Provinces so the proper Startup culture could be developed
Well, one will surely experience such embarrassment and inconvenience at the hands of Non-Professional Managers who are picked to only raise the deposits whereas the quality of service is compromised at the hands of such amateurs.
Therefore, Ms Tanya Aidrus head Digital Pakistan Vision and her team at Digital Pakistan Initiative will have to work out to appease the stakeholders to achieve the desired goals set as per the tenure of PTI so that Pakistanis may reap the benefits from this digital world.
To achieve this goal, the portfolio of IT and Telecom ministry must be given to a professional who should be well versed in IT and telecom preferably a Computer science or IT Graduate to pilot this project to achieve the goals in a given clear framework.
There is also a big concern regarding inflated Taxes levied upon the business community which needs to be reduced if they use Digital currency since Digital Currency will enable FBR to track payments and appraise the financial strength of the Individuals.
The e-Currency spectrum will help reduce the crime rate, tax evasion, hoarding of money as People will use credit cards and digital wallets such as PayPal, Ali Pay, Google pays those can easily be tracked and monitored through digital systems.
China
Decoding China’s Consumer Price Rebound Amid Deflation Risks: Insights & Analysis
Introduction
China’s consumer prices have shown signs of rebounding, thanks to a holiday boom. The Consumer Price Index (CPI) grew by 0.7% year on year in February, surpassing expectations and marking the first rise after six consecutive months of decline. However, amidst this positive development, there are looming concerns about deflation risks as factory gate prices continue to fall for the 17th consecutive month. This article delves into the intricacies of China’s current economic landscape, analyzing the factors contributing to the CPI growth and exploring the implications of persistent deflation risks.
1: Understanding China’s Consumer Price Index (CPI) Growth
The Consumer Price Index (CPI) serves as a key indicator of inflation and reflects changes in the prices paid by consumers for goods and services. The recent 0.7% year-on-year growth in China’s CPI in February has sparked optimism among economists and policymakers. This growth can be attributed to various factors, including increased consumer spending during holidays, rising demand for certain goods and services, and government stimulus measures aimed at boosting consumption.
2: Implications of CPI Growth on China’s Economy
The rebound in consumer prices has significant implications for China’s economy. A positive CPI growth indicates a healthier level of inflation, which can stimulate economic activity by encouraging spending and investment. It also reflects improved consumer confidence and overall economic stability. However, it is essential to monitor the sustainability of this growth and its impact on other economic indicators.
3: Analyzing Deflation Risks in China’s Economy
Despite the encouraging CPI growth, there are concerns about deflation risks looming over China’s economy. The continuous decline in factory gate prices for the 17th consecutive month is seen as a warning signal by analysts. Deflation can have detrimental effects on an economy, leading to reduced consumer spending, lower corporate profits, and potential economic stagnation. Policymakers must address these deflation risks proactively to prevent long-term negative consequences.
4: Factors Contributing to Deflation Risks
Several factors contribute to the deflation risks faced by China’s economy. Overcapacity in certain industries, weak global demand, trade tensions, and technological advancements leading to cost reductions are some of the key factors driving down factory gate prices. Addressing these underlying issues requires a comprehensive approach that involves structural reforms, targeted stimulus measures, and strategic policy interventions.
5: Strategies to Mitigate Deflation Risks
To mitigate deflation risks and sustain economic growth, policymakers in China need to implement effective strategies. These may include promoting domestic consumption through incentives and subsidies, fostering innovation and technological advancement to enhance competitiveness, addressing overcapacity through industry restructuring, and maintaining a stable macroeconomic environment through prudent monetary and fiscal policies.
Conclusion
China’s consumer price rebound offers a glimmer of hope amidst challenging economic conditions. While the CPI growth signals positive momentum in the short term, it is essential to address the underlying deflation risks to ensure long-term economic stability and growth. By understanding the factors contributing to CPI growth and deflation risks, policymakers can formulate targeted strategies to navigate these challenges effectively. Monitoring economic indicators closely and implementing proactive measures will be crucial in safeguarding China’s economy against potential downturns.
Economy
Unveiling the Potential: Lake Street Analyst Raises Price Target on Crexendo to $7
Introduction
In the dynamic world of stock markets, analysts play a crucial role in guiding investors with their insights and recommendations. Recently, Lake Street analyst Eric Martinuzzi made waves by raising the price target on Crexendo (NASDAQ: CXDO) to $7 from $5.50, reaffirming a Buy rating and showcasing his bullish outlook on the company’s prospects. This move not only reflects Martinuzzi’s confidence in Crexendo but also sheds light on the underlying factors driving this optimistic stance.
1: The Analyst’s Perspective
Eric Martinuzzi, a seasoned analyst at Lake Street, has demonstrated his faith in Crexendo’s growth potential by revising the price target upwards. His Buy rating underscores a positive outlook on the company’s trajectory, indicating a belief in its ability to thrive in the competitive market landscape. By delving into Martinuzzi’s rationale behind this decision, investors can gain valuable insights into what sets Crexendo apart and why it is poised for success.
2: Unpacking Crexendo’s Market Position
Crexendo, a technology company specializing in cloud communications solutions, has been making strides in expanding its market presence and enhancing its offerings. With a focus on innovation and customer-centric solutions, Crexendo has positioned itself as a key player in the industry. The heightened price target from Lake Street signals a strong conviction in Crexendo’s capabilities to further solidify its market position and drive growth.
3: Factors Driving Optimism
Several factors contribute to the positive sentiment surrounding Crexendo and justify the increased price target set by Lake Street analyst Eric Martinuzzi. These may include strong financial performance, innovative product offerings, strategic partnerships, market trends favoring cloud communications solutions, and overall industry outlook. By examining these factors in detail, investors can better understand why Crexendo is garnering attention and what potential opportunities lie ahead.
4: Implications for Investors
For investors looking to capitalize on the bullish outlook for Crexendo, understanding the implications of the revised price target is crucial. It signifies not just a numerical increase but also a vote of confidence in the company’s ability to deliver value and generate returns for shareholders. By aligning investment strategies with this optimistic outlook, investors can position themselves strategically to benefit from Crexendo’s growth trajectory.
Conclusion
In conclusion, Lake Street analyst Eric Martinuzzi’s decision to raise the price target on Crexendo to $7 reflects a positive assessment of the company’s prospects and underscores its growth potential. By exploring the analyst’s perspective, unpacking Crexendo’s market position, analyzing the factors driving optimism, and considering the implications for investors, stakeholders can gain valuable insights into why Crexendo is an intriguing investment opportunity worth considering.
Economy
The Economic Consequences of Elections: A Perspective from Nedbank
Introduction
Elections are an integral part of any democratic society, providing citizens with the opportunity to choose their leaders and hold them accountable for their actions. However, the focus on elections can often divert attention from other pressing issues, such as fixing the economy.
In a recent statement, the Nedbank chief, Mike Brown, expressed concern that the upcoming elections could take the focus off fixing the economy, which is a cause for concern for many South Africans. In this article, we will delve deeper into the economic consequences of elections and the implications for South Africa.
The Economic Consequences of Elections
Elections can have significant economic consequences, both in the short and long term. In the short term, elections can lead to increased uncertainty, as investors and businesses may hold back on making decisions until the outcome is clear. This uncertainty can lead to a decrease in investment, which can negatively impact economic growth.
In the long term, elections can lead to policy changes that can have significant economic consequences. For example, if a new government comes into power with a different economic policy, this can lead to changes in regulations, taxes, and other economic factors that can impact businesses and investors. This can lead to a decrease in confidence in the economy, which can further impact investment and economic growth.
Nedbank’s Perspective
Nedbank, one of South Africa’s largest banks, has expressed concern that the upcoming elections could take the focus off fixing the economy. Mike Brown, the Nedbank chief, has stated that “the focus on the election could distract from the need to address the structural issues that are holding back the economy.” This is a concern shared by many South Africans, who are worried about the country’s economic future.
Structural Issues in the South African Economy
South Africa’s economy has been struggling for some time, with high levels of unemployment, low economic growth, and a large budget deficit. These structural issues are complex and require significant attention and effort to address. However, the focus on elections can divert attention from these issues, making it difficult to make progress in fixing the economy.
Conclusion
Elections are an important part of any democratic society, but they can also have significant economic consequences. The focus on elections can divert attention from other pressing issues, such as fixing the economy. As the Nedbank chief has pointed out, this can seriously affect South Africa’s economic future. Attention must be given to these structural issues, regardless of the outcome of the elections. Only then can South Africa hope to achieve sustainable economic growth and development.
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