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Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders

Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders
An undated file photo of SadaPay's numberless debit card. (Photo courtesy: SadaPay/Facebook)
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Updated 19 February 2024
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Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders

Turkish fintech giant to acquire ‘complete ownership’ of Pakistan’s SadaPay in potential deal — insiders
  • SadaPay, valued at $43-64 million in April 2022, is likely to attract up to $50 million as part of the deal
  • Turkiye’s Papara will invest $10 million in Pakistan to further increase operational capacity of SadaPay
Updated 19 February 2024
KHURSHID AHMED   
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KARACHI: Papara, a financial technology giant headquartered in Turkiye’s Ankara, is currently in talks with SadaPay, a Pakistan-based financial technology company, for a potential merger deal worth nearly $50 million, according to people familiar with the developments.

Papara, an electronic money and payment services organization, is the first non-banking entity to issue a prepaid card with Mastercard logo in Turkiye. Launched in 2016, the fintech has 18 million users and provides digital wallet services, allowing users to make payments, transfer money, and perform various financial transactions through their mobile phones or online platforms.

SadaPay, on the other hand, is regulated by the State Bank of Pakistan (SBP) and is a wholly-owned subsidiary of SadaPay Technologies Limited, registered with the Dubai International Financial Center.

The deal for “complete ownership” of SadaPay by the Turkish fintech giant is in advanced stages and if finalized, it would pave the way for an immediate investment of around $10 million in Pakistan, said sources familiar with the developments.

Reached for comment, Brandon Timinsky, CEO of SadaPay, told Arab News that he was “not able to provide any official statement at this time.”

Other key officials of SadaPay also declined to comment, but a fintech source called the possible merger a “good development” for Pakistan.

“This is a good development for Pakistan’s startup ecosystem,” the official said, requesting anonymity. “This deal will pave the way for further investment of around $10 million in addition to actual value of the deal to boost operational capacity [of SadaPay].”

He said the deal would likely be in the range of $30-50 million, under which “100 percent ownership” of SadaPay would be transferred to the Turkish firm.

Dealroom.com, a global provider of data and intelligence on startups and tech ecosystems, valued SadaPay at $43-64 million in April 2022.

The final details of the deal are expected to be made public after a regulatory approval from the Pakistani central bank.

Topics: SadaPay Papara

Pakistan to launch first women’s software technology park in Azad Kashmir next year

Pakistan to launch first women’s software technology park in Azad Kashmir next year
Updated 19 sec ago
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Pakistan to launch first women’s software technology park in Azad Kashmir next year

Pakistan to launch first women’s software technology park in Azad Kashmir next year
  • The tech facility will bridge the region’s gender-based digital divide and become operational in February
  • Over 18,000 professionals are employed across 43 IT parks in Pakistan, of which 20 percent are women
Updated 19 sec ago
Arab News Pakistan

ISLAMABAD: Pakistan announced on Friday its plan to establish the country’s first women’s software technology park in Azad Kashmir, aiming to bridge the region’s gender-based digital divide and targeting a launch in February.

The decision was made during a meeting of the Pakistan Software Export Board (PSEB), chaired by Minister of State for Information Technology Shaza Fatima Khawaja, which assessed the overall performance of the country’s IT sector.

The move is part of the government’s broader plan, unveiled in May, to set up 10 new software technology parks nationwide by next year, including one in the federal capital.

These parks will feature incubation centers and other facilities to support start-ups, expand Pakistan’s digital landscape, increase IT exports and promote gender inclusivity in the tech sector.

“The initiative [to set up the software technology park in Azad Kashmir] underscores our dedication to creating equal opportunities for women and ensuring their meaningful participation in Pakistan’s digital economy,” the minister was quoted as saying in an official statement circulated after the meeting.

The statement informed that 20 percent of workforce in PSEB-supported software technology parks comprises female IT professionals.

Over 18,000 export professionals are currently employed across 43 IT parks in Pakistan.

The PSEB’s initiatives since 2020 have also resulted in more than 10,000 job placements through targeted training, certifications and internship programs.

The organization aims to empower 25,000 freelancers by 2027 by establishing 250 e-Employment Center’s and expand the footprint of the country’s IT sector abroad.

Topics: software technology park azad kashmir

Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm

Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm
Updated 20 December 2024
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Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm

Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm
  • Karachi Port Trust declared China Harbor Engineering Company lowest bidder, likely to award contract to it
  • A final evaluation report reveals the Chinese firm scored lower than Dutch bidder Van Oord in two categories
Updated 20 December 2024
NAIMAT KHAN

KARACHI: The Karachi Port Trust (KPT) has been under scrutiny for suspected foul play in the award of a dredging contract, which is likely to go to a Chinese firm that did not comply with the Pakistan’s procurement rules, according to documents and media reports.
The contract, which was advertised in July, will require the successful bidder to clear mud, weeds and rubbish from 4 million cubic meters of the Karachi port’s navigation channel. The port, one of the largest in South Asia, handles about 60 percent of Pakistan’s seaborne cargo, making the dredging project crucial to its operations.
Three of the four bidders offered dredging equipment with a capacity exceeding 15,000 cubic meters, according to the documents. Reports published in Pakistani media said the Chinese firm, China Harbor Engineering Company (CHEC), submitted a bid with underpowered equipment that failed to meet the required timelines and quality standards, making it non-compliant with the specifications outlined in the tender.
In November, Pakistan’s Public Procurement Regulatory Authority (PPRA) sought an explanation from the Karachi port authorities as to why they had not issued a full technical evaluation report of the bids.
“The procuring agency is hereby required to explain as to why complete technical evaluation report containing justification for acceptance or rejection of technical proposals could not be issued,” it said, highlighting the breach of a mandatory seven-day standstill period following the announcement of technical evaluation results as stipulated in Public Procurement Rules.
Van Oord, a leading Dutch dredging, land reclamation and island construction company, filed a formal complaint with the PPRA on November 15 with regard to the tender. The Dutch company alleged that the KPT announced technical evaluation results on the same day as the opening of financial proposals, which was in violation of Section 35 of the Public Procurement Rules that mandates the announcement of a complete technical evaluation report prior to the financial evaluation.
Van Oord said this procedural oversight deprived the bidders of the opportunity to appeal the results before the Grievance Redressal Committee, a process also mandated by Section 48 (3) the Public Procurement Rules. The complaint highlighted that any breach of procurement rules could be considered “mis-procurement” under Section 50 of the Public Procurement Rules and called for a “thorough investigation.”
On Friday, Arab News approached KPT spokesperson Naheed Tariq, but she declined to comment on the matter.
The “final evaluation report” posted on the KPT’s official website indicated that CHEC-Al Fajr International (AFI) Joint Venture (JV) was declared the lowest bidder. CHEC-AFI offered a bid of Rs6.49 billion, while Van Oord’s bid was Rs7.51 billion, according to the document.
The report revealed that two bidders received almost equal score in six of eight technical categories. However, the Chinese consortium scored significantly lower in the category of “Method of Performing Work,” receiving 14 out of 20 points, while it scored 47 out of 50 for “Availability of Major/Critical Equipment,” compared to Van Oord’s 100 percent scores in both categories.

Topics: Karachi port karachi port trust

Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV

Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV
Updated 21 December 2024
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Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV

Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV
  • Panelists on a PTV show last week said doctors in Pakistan recommended excessive chemotherapy sessions to treat cancer patients
  • Society of Medical Oncology Pakistan criticizes the panelists for sharing ‘misleading’ information, says they follow global standards
Updated 21 December 2024
NAIMAT KHAN

ISLAMABAD: An association of Pakistani oncologists on Friday described as “misleading” the claims of some analysts about chemotherapy and its use in treatment of cancer patients, which were aired by Pakistan’s state television last week.
Rizwan Razi, a political commentator, on Dec. 13 declared chemotherapy in Pakistan a “fraud” and said on a Pakistan Television (PTV) show it was used to swindle patients of billions of rupees. Without naming the doctor, Razi said he was informed by an Australian oncologist that they feared going beyond three chemotherapy sessions of a patient and in Pakistan, the treatment usually involved eight sessions, calling oncologists suggesting excessive sessions a “fraud.”
He said Punjab Chief Minister Maryam Nawaz was going to bring a “Chinese technology” to Pakistan to successfully treat cancer patients in the country. Ameen Hafeez, another panelist, hailed Nawaz for offering free treatment to all cancer patients at Nawaz Sharif Cancer Care Hospital. Shumaila Chaudhry, the host of show ‘Siyasat Tonight,’ said those who were scared of the disease should stop being afraid of it, as its “solution” was soon going to be introduced in the country.
In a statement issued on Friday, the Society of Medical Oncology Pakistan (SMOP) criticized the panelists for sharing “misleading” information about cancer treatment and said “such statements could endanger people’s lives.”
“Authentic institutes such as National Comprehensive Cancer Network (NCCN), European Society for Medical Oncology (ESO), and American Society of Clinical Oncology (ASMO) stress the important role of chemotherapy in cancer treatment,” the SMOP said. “In Pakistan, cancer is treated according to international standards.”
Nawaz announced in October the establishment of 920-bed Nawaz Sharif Cancer Care Hospital in Lahore, saying the “expertise to treat cancer are quite rare in Pakistan, for which people spend all their savings.”
This week, Punjab Information Minister Azma Bukhari said that Nawaz, during her recent visit to China, had signed an agreement with a Chinese firm for the transfer of ‘HYGEA’ innovative therapy, which uses extreme cold to destroy cancer cells and is said to be minimally invasive.
The SMOP said airing misleading information regarding such topics was not only dangerous for patients, but it impacted public confidence in medical procedures and treatment.
It requested the PTV to issue a “clear statement” distancing itself from the views of aforementioned program host and panelists.
“It must be ensured in the future that discussions on sensitive topics like medical treatment should be based on expert opinions of information from authentic, professional individuals,” the SMOP added.

Topics: Cancer treatment ptv news

Pakistan prepares to terminate take-or-pay contracts with independent power producers

Pakistan prepares to terminate take-or-pay contracts with independent power producers
Updated 20 December 2024
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Pakistan prepares to terminate take-or-pay contracts with independent power producers

Pakistan prepares to terminate take-or-pay contracts with independent power producers
  • Pakistan approved a decade ago dozens of mostly foreign-financed private projects by IPPs to tackle chronic power shortages
  • PM Sharif’s cabinet this month approved settlement agreements with eight IPPs with the aim to reduce power tariff, expenses
Updated 20 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan is making preparations to stop capacity payments to independent power producers (IPPs) by dissolving the mechanism of take-or-pay, Pakistani state media reported on Friday.
Take-or-pay is referred to as capacity payments in Pakistan where the government has to pay private companies irrespective of how much of the power they generate is transferred to its grid.
Pakistan approved dozens of private projects by IPPs, financed mostly by foreign lenders, a decade ago to tackle chronic power shortages. But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
This month, Prime Minister Shehbaz Sharif’s cabinet approved settlement agreements with eight bagasse-based IPPs with the aim to reduce electricity prices and save the national exchequer billions of rupees, the Radio Pakistan broadcaster reported.
“The agreement between IPPs and the government’s Energy Task Force is a significant milestone, which can result in saving of 300 billion rupees ($1.07 billion) of the national exchequer,” the broadcaster said.
Short of funds, successive Pakistani governments have built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
In October, PM Sharif said his government was terminating purchase agreements with five IPPs to rein in electricity tariffs as households and businesses buckled under soaring energy costs, according to state media. Pakistan’s Central Power Purchasing Agency was due to approach the National Electric Power Regulatory Authority (NEPRA) for a reduction in the electricity tariff generated from these power plants.
There is a possibility of Rs3.50-6.50 decrease in the electricity tariff as a result of government reforms as the government has pledged to pay outstanding dues within 90 days as prescribed in the agreements, Radio Pakistan reported on Friday.
“The government has also expressed resolve to promote private partnership for development of energy sector,” the report read.
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout. The program was approved in September.
Pakistan has also been holding talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.

Topics: Independent Power Producers (IPPs) IPPs Arab News Pakistan

Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse

Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse
Updated 20 December 2024
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Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse

Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse
  • The KSE-100 index gained 3238 points to close the weekend trading session at 109,513 points
  • Stock analysts attribute strong recovery of the market to easing pressure at local mutual funds
Updated 20 December 2024
KASHIF IMRAN

ISLAMABAD: The Pakistan Stock Market on Friday bounced back strongly and gained more than 3,000 points, stock analysts said, a day after it witnessed a “massacre” on the back of significant redemptions from local mutual funds and year-end profit-taking.
The benchmark KSE-100 index gained 3238.17 points to close the weekend trading session at 109,513.14 points. On Thursday, the index plummeted by 5,132 points, or 4.32 percent, to close at 106,274.97 points, compared to Wednesday’s close of 111,070.29 points.
Stock analysts attributed the strong recovery to easing pressure at local mutual funds.
“Likely easing redemption pressure at local mutual funds together with the opening up of attractive valuations encouraged value buyers to reenter the market,” Raza Jafri, head of equities at Intermarket Securities, told Arab News.
Thursday’s slump was led by Hub Power Company Limited, United Bank Limited, Oil and Gas Development Company, and ENGRO, cumulatively contributing a staggering 1,556 points to the index’s overall decline, according to Topline Securities.
The sharp sell-off was triggered by significant redemptions from local mutual funds, compounded by year-end profit-taking by institutions, that dragged the market into a “turmoil,” it added.
The decline came days after Pakistan’s central bank cut its key interest rate by 200 basis points to 13 percent, marking the fifth straight reduction since June.
Yousuf M. Farooq, head of research at Chase Securities, said the market had entered a corrective phase, following a significant rally over the past year.
“We believe that earnings will now drive market performance rather than valuation rerating,” he added.

Topics: Pakistan Stock Exchange (PSX) Pakistan Stock Market

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