VISA to Launch New Card in Pakistan to Enhance Domestic Transactions
During his final day in Washington, DC, at the Annual Meetings of the World Bank Group and the IMF, Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with Andrew Torre, Regional President for VISA.
The Finance Minister commended Visa’s dedication to modernizing Pakistan’s payment ecosystem, particularly by supporting domestic payment platforms such as 1Link. He also praised Visa’s efforts in promoting financial inclusion and supporting entrepreneurs. Aurangzeb expressed his approval of Visa’s initiative to launch the Financial Inclusion Card in collaboration with Meezan Bank. Both parties recognized the necessity for clients to have more routing options and a fair environment for processing domestic transactions.
In a related discussion, the Finance Minister met Liao Min, Vice Minister of Finance of China, reaffirming the all-weather strategic cooperative partnership between Pakistan and China. He extended gratitude to the Chinese government for its steadfast support in Pakistan’s socio-economic development, including securing the IMF’s Extended Fund Facility (EFF). Aurangzeb also expressed interest in learning from China’s economic reform experiences.
The Minister welcomed BYD’s announcement to introduce electric vehicles in Pakistan and indicated plans to launch an inaugural Panda bond in the Chinese market to diversify Pakistan’s financing sources. He reaffirmed the government’s commitment to ensuring robust security for Chinese workers in Pakistan. Additionally, he shared that many Chinese companies are keen to expand their investments and create more job opportunities in the country. He requested the Chinese government to increase limits under the Currency Swap Agreement, highlighting the need for online payment settlements and integration of the two countries’ payment systems.
In a meeting with Mohammad Kallala, Global Head of Corporate and Investment Banking Business of Natixis, the Finance Minister discussed the bank’s operations and strong presence in various sectors, including infrastructure, renewables, and telecommunications. Kallala expressed the bank’s interest in partnering with leading Pakistani firms to facilitate investments from Gulf, particularly Saudi investors. Both parties agreed to continue their engagement.
Karan Bhatia, Vice President and Global Head of Government Affairs and Public Policy at Google, also met with the Finance Minister. He provided an overview of Google’s recent initiatives and plans for deepening investment in Pakistan, discussing regulatory, connectivity, and financial challenges. The Finance Minister assured Bhatia of the government’s full support in addressing these issues.
Furthermore, the Finance Minister engaged with Pakistani-American tech entrepreneurs, identifying the IT sector as a rapidly growing area of the economy. He highlighted that Pakistan ranks among the top five countries in freelancing and emphasized the contribution of the IT sector to national exports. He also noted that efforts are underway to enhance the digital ecosystem through various legislative and operational initiatives.
Reflecting on his engagements at the Annual Meetings 2024, Aurangzeb expressed satisfaction with the outcomes and underscored the importance of maintaining momentum on reforms. The event concluded with a Q&A session.
The Finance Minister also met with Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB). He acknowledged the bank’s support to Pakistan, especially in addressing the aftermath of the devastating floods in 2022. He mentioned his earlier interactions with the People’s Bank of China (PBOC) and indicated the government’s desire to diversify its financing sources, exploring the possibility of issuing a panda bond with a partial credit guarantee from AIIB. Engaging AIIB as an anchor for this process would signal strong market confidence.
Discussions included the potential for a no-deal roadshow followed by a deal roadshow, and the Finance Minister expressed satisfaction with the progress of AIIB projects in Pakistan while emphasizing the need to improve disbursement rates. He invited AIIB to invest in the N-5 (GT Road) reconstruction project and provide support through program loans addressing climate change impacts and disaster preparedness. The Minister welcomed the upcoming visit of the Vice President (Operations) of AIIB to review ongoing projects and solidify future cooperation, inviting the President to visit Pakistan at mutually convenient dates.
Other activities during the Finance Minister’s visit included interactions with leaders from the Pakistani diaspora, where he acknowledged their significant contributions to strengthening economic, business, and investment ties between Pakistan and the United States. He also engaged with correspondents from Pakistani media outlets in the U.S., updating them on socio-economic developments in Pakistan and sharing insights from his week-long engagements in Washington, DC.
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