Pakistan, UAE resolve to enhance cooperation after Abu Dhabi crown prince’s visit

ISLAMABAD: American financial services company Payoneer has partnered with Meezan Bank, Pakistan’s largest Islamic bank, to enhance cross-border payments for Pakistani businesses, entrepreneurs, and freelancers, a press release said on Wednesday.

Under the partnership, Meezan Bank customers can link their Payoneer accounts to the bank’s mobile banking app to make real-time withdrawals in multiple global currencies directly into their Meezan local receiving accounts. The mobile app integration will allow businesses in Pakistan to receive funds from clients, vendors, and marketplaces worldwide, enabling them to be “local” to their customers regardless of where they are. 

Meezan Bank customers will also access benefits including multi-currency balance monitoring, transparent FX rates, no hidden costs, pre-populated personal details, quick authentication via SMS, and a straightforward account-linking process.

The integration will also ensure that Proceeds Realization Certificate (ePRC), an essential document provided by Meezan Bank for regulatory adherence, tax filing, and securing export rebates, will be issued with every transaction, addressing a critical legal requirement for Pakistan's small and medium businesses engaged in cross-border trade.

“By partnering with Meezan Bank, we are providing Pakistani businesses access to financial management tools that will support their global expansion and help them grow alongside the evolution of Pakistan's export landscape,” said Mohsin Muzaffar, country manager at Payoneer Pakistan.

“We're committed to enabling Pakistan’s businesses to thrive on the global stage while contributing to the acceleration of the country's digital export growth.”

Abdullah Ahmed, group head transaction and international bankinggroup at Meezan Bank, said the institution’s strong digital infrastructure and deep expertise in the interconnected global economy had made it an “ideal Islamic banking partner” for Payoneer. 

“This seamless integration reflects our shared vision of fostering financial inclusion, driving innovation, and supporting Pakistan’s digital economy in alignment with ethical and Islamic financial principles,” the official said. 

"We look forward to a successful collaboration that empowers businesses and individuals alike through responsible and inclusive banking solutions.”

The collaboration comes at a pivotal time for Pakistan's digital economy. The nation's IT exports reached $3.2 billion in FY2023-24, a 24% year-on-year increase. Pakistan's freelance worker community of over 1.5 million professionals also contributed $350 million to the country's foreign exchange reserves last year.

ISLAMABAD: Pakistan is likely to pass the first review of its $7 billion loan program with the International Monetary Fund since it has made enough progress to raise revenue, Bloomberg reported this week, quoting officials and diplomats familiar with the matter.

An IMF team led by Mission Chief to Pakistan Nathan Porter is in Pakistan this week to meet with government officials and assess their progress in meeting the loan conditions. If the IMF approves the first review of the loan, the country is in line to receive about $1 billion as the second installment of the loan package. The IMF review is being closely watched by investors as a sign of progress in economic reforms.

“The government of Prime Minister Shehbaz Sharif has approved a law to tax agricultural income, attempted to sell a stake in state-owned Pakistan International Airlines and taken steps to meet an ambitious tax target, and have presented these developments to the IMF,” Bloomberg said on Tuesday, listing reforms that could lead to Pakistan clearing the review. 

Sharif told the global lender’s Managing Director Kristalina Georgieva last month his government plans to submit a plan to boost economic growth after achieving stability. The IMF chief said in an X post the lender was encouraged by Pakistan’s strong commitment and reforms.

A team from Pakistan led by Finance Minister Muhammad Aurangzeb started the “kick-off meeting” with the IMF team on Tuesday, the ministry said in a statement. Aurangzeb said in an interview last month the country will meet its revenue goals for the fiscal year to June and any shortfall will be met by expanding the tax net. He has separately said the nation is confident to meet other targets of the program. 

Pakistan was able to build some trust with the IMF by completing a short-term nine-month program last year. Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions.