Day: January 26, 2022

The Pakistani Rupee (PKR) continued its losing run against the US Dollar (USD) and posted losses in the interbank market today. It lost 25 paisas against the greenback after hitting an intra-day high of Rs. 176.5 against the USD during today’s open market session.

It depreciated by 0.15 percent against the USD and closed at Rs. 176.98 today after losing 22 paisas and closing at 176.72 in the interbank market on Tuesday, 25 January.

The rupee reported losses against the dollar for the third consecutive day after the International Monetary Fund’s (IMF) Executive Board extended the date for Pakistan’s sixth review to 2 February for the $6 billion Extended Fund Facility (EFF) program.

Initially adjourned for 12 January, the Executive Board rescheduled Pakistan’s case again for the completion of the sixth review after the Ministry of Finance formally requested the global lender to postpone the approval of the review until the end of January or early February.

On the global front, the IMF has projected worldwide growth to downshift from 5.9 percent in 2021 to 4.4 percent this year due to the various “impediments” created by the Omicron variant.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, highlighted on Twitter that the PKR is struggling to regain its footing.

He also noted that the market was worried on how the State Bank of Pakistan (SBP) will react to inflationary pressures but it managed able to keep everything in balance. He acknowledged that cut-off rates on treasury bills also surged after the central bank’s monetary policy decision to gain 50 basis points. Regardless, he remarked it is still too early to say “if the rally will be sustainable or not”.

The PKR also reversed its gains against the other major currencies and reported losses in the interbank currency market today. It lost 45 paisas against the Australian Dollar (AUD), 73 paisas against the Canadian Dollar (CAD), 69 paisas against the Pound Sterling (GBP), and two paisas against the Euro (EUR).

Moreover, it lost six paisas against the Saudi Riyal (SAR) and seven paisas against the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani

For the masses to become active participants in the real estate sector and the system to be truly inclusive, a push towards fractionalized asset ownership is visible across the globe.

The concept of a combination between real estate and blockchain is the next big talk of the decade, and there’s a lot of room for improvement.

The Financial Crisis

The financial crisis of 2007–2008 resulted in a meltdown of the global economy. The housing market crashed, stocks plunged, people lost their life savings, and billions of dollars of taxpayers’ money were spent to bail out the global financial system. This was a final blow to the trust in centralized financial institutions.

At the same time, brewing underneath the layer of this global fiasco of the economic system was a novel approach to solving the problems of this system. An internet-native cryptographic network validated by thousands of decentralized participants, to store and exchange financial value, had evolved.

The Case for Cryptos

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions. This decentralized and digital transaction validation protocol can perform and enable thousands of interactions each minute without the intervention of any governance body. Additionally, its robust ledger system publishes its total and individual account balances several times an hour and distributes it within the whole network just like a newspaper would, such that the ledger becomes immutable once published. Without a doubt, the monopolistic contractors of the financial system were offended.

The Scale

The push towards crypto was further fueled by the waning trust in traditional institutions from Gen Z and tech-savvy millennials, who have witnessed two economic depressions and a global pandemic in their lifetimes. Today, the combined crypto market is valued at over $2.5 trillion globally. Realistically speaking, crypto is an experiment that has shaken the world’s economic order. While this experiment has its believers and naysayers, it has proven one thing; the underlying technology that enabled this revolution, blockchain, cannot be ignored.

The Need for Proptech 3.0

Real estate assets have been one of the biggest stores of global wealth. Current global real estate assets are valued at above $280 trillion (more than 75 percent of global wealth). Additionally, it is managed, used, and owned by millions of individuals and corporations across the world and regulated by central governments – a truly decentralized ownership structure. Some in the blockchain community believe this asset class to be the pinnacle of the crypto revolution.

Using simple digital tools and the immutable ledger system, players in the property technology space are building revolutionary tools to address the challenges in the real estate system and create unprecedented ease of use. The digital ledger system enables not only the validation of existing customers but also seamlessly enables transfers of land records with the simplicity of sending a message over the internet protocol.

Real estate regulatory bodies across the world are rushing to enable such solutions, with Dubai being a frontrunner in the game with its 2020 blockchain vision. Additionally, transparent financial records, transactional history, and digital rental distribution systems are adding value for all stakeholders. With the enablement of an immutable ledger, it is increasingly difficult for independent players to use real estate for tax evasion and money laundering.

Moving forward, for the masses to become active participants in the real estate game and the system to be truly inclusive, a push towards fractionalized asset ownership is visible across the globe. Without a robust decentralized ledger, such records are almost impossible to manage.

Real estate, currently existing only as a store of value for a few in the financial arena, may become a tool for the masses and be used additionally for regular exchange of value transactions. An asset class that stores wealth, earns income and appreciation, drives industries and creates millions of jobs, and may be used for instant liquidity for its holders, fulfilling the dream of a decentralized and manipulation-free sustainable monetary regime.

The Road Ahead

It is not surprising that entrepreneurs and venture capitalists see the real estate industry to be ripe for disruption. Aiming to seize the opportunity and be a part of this disruption, the number of PropTech start-ups has grown substantially in recent years. From Zameen to Graana to Ilaan, we see a new generation of real estate entrepreneurs emerging, who claim to challenge the status quo.

One such start-up, DAO PropTech, is a revolutionary end-to-end digital platform connecting suppliers, investors, and users of contemporary real estate assets. It is utilizing blockchain technology to bring much-needed transparency, affordability, and inclusivity to the real estate sector of Pakistan. We spoke to its Co-founder & Chief Technology Officer, Abdullah Khan, about cryptos, the future of PropTech, and the real estate industry in Pakistan. He remarked,

Crypto’s Achilles heel will always be its lack of legal legitimacy. We believe this system based on anarcho-capitalism is not viable since societies currently cannot function without any governance structures at all. While cryptos will always remain at odds with the governments, as they pose a threat to the existing monetary system, they have proved blockchain technology to be the next big revolution in data recording and transparency. Backed by blockchain, real estate can not only be tokenized but transactions can be sped up, removing the high barriers to entry, and providing faster liquidity. This opens up the real estate arena to a new generation of investors; young professionals and middle-class workers, for whom real estate investing was but a dream. Real estate transactions recorded on blockchain also give a fool-proof record-keeping mechanism that cannot be tampered with, giving the power back to the people. We envision the real estate market becoming more data-driven; Investors and owners leveraging data to make informed decisions. PropTech has the potential to disrupt real estate; one of the world’s oldest and largest industries. We should expect to see many new PropTechs and PropFinTech’s emerge.

Rounding Up

Cryptocurrencies represent the dawn of a new era where all value is represented in distributed ledgers. However, it doesn’t mean that crypto is without its problems. Blockchain, on the other hand, can play a pivotal role in solving the new age problems in many industries including the real estate sector.

The first step towards this advancement is an in-depth understanding of the advantages that blockchain comes with. We are at a crossroads towards disrupting and reshaping the real estate industry by providing legitimacy and transparency in real estate transactions. By adding these core features into a digital platform, investing in real estate would be much easier, faster, and secure to the extent of providing brokers, buyers, investors, and even suppliers to track developments in real-time, paving the way for a future where real estate becomes a force for financial liberation of the masses.

Source: Pro Pakistani

Pakistan International Airlines (PIA) is interested in strategic partnerships with Pakistan-based IT companies for indigenously developing software solutions.

This is an opportunity for IT companies to not only develop software solutions for PIA but also provide software solutions to other domestic and international airlines in collaboration with the national flag carrier.

Airlines usually require software solutions for Revenue Accounting, Revenue Management, Frequent Flyer Program, and Crew Scheduling Management that are used to manage different facets of an airline’s operations such as reservation and ticketing system, departure control, and weight balance.

The Pakistan Software Export Board (PSEB) member IT companies interested in strategically collaborating with the PIA for developing airline software solutions can now duly fill and submit the relevant Application Form by February 2, 2022.

More information regarding the proposed partnerships with the national flag carrier will be relayed subsequently.

Source: Pro Pakistani

The prices of edible oil in the country came under discussion in the meeting and the NPMC was concerned about the increase in the prices as the international market has had a dip in the prices of edible oil.

This was revealed by the Economic Adviser of the Finance Division during the meeting of the National Price Monitoring Committee (NPMC) that was chaired by the federal Minister for Finance and Revenue, Shaukat Tarin.

The committee also directed the MoIP to formulate a strategy and explore alternative options for the import of edible oil to reduce the prices in the country.

The Sensitive Price Index (SPI) also was decreased by 0.06 percent compared to the previous week when it stood at 0.43 percent.

A brief from the Finance Division revealed 33 food items have contributed an increase of 0.05 percent while 18 non-food items contributed to a decrease of 0.11 percent to the SPI. The NPMC was informed that there is a decline in the SPI for the third time since 31 December 2021.

The prices of seven items fell during the previous week, and this contributed to the decline in the SPI by 0.59 percent. These items were chicken (by 0.27 percent) and other goods by (0.35 percent). Meanwhile, the prices of the 24 items that contributed to the increase in the SPI by 0.53 percent are tomatoes (by 0.22 percent), garlic (by 0.01 percent), petrol (by 0.16 percent), and others (by 0.14 percent). The rise in the prices of perishable items like tomatoes has been credited to the rain in the country.

The NPMC was updated on the prices of wheat flour and was informed that the prices of wheat flour were stable in the country. However, the slight variation in its prices was due to the disruption in the supply caused by rain and fog.

The meeting entailed a discussion on the stock position of wheat in the country and the attendees were informed that sufficient stocks of wheat are available. Minister Tarin expressed his satisfaction with the availability of sufficient stocks of wheat and directed the Ministry of National Food Security & Research (NFS&R) to formulate a strategy to optimally maintain the strategic reserves of wheat in the country to meet any difficult situation in the future.

The NPMC also discussed Pakistan’s sugar prices and directed the Ministry of Industries and Production (MoIP) to expedite the process for the building of strategic sugar reserves and the maintenance of the stability of their prices.

Regarding pulses, the NPMC was briefed that the prices of moong have been stable while those of gram, maash, and masoor have increased due to their decreased production worldwide, variations in the exchange rate, and increased freight charges.

Minister Tarin was interested in the difference in the retail and wholesale prices of pulses in the country and directed the Ministry of NFS&R to investigate and take appropriate action against exploiters to maintain stability in the prices of imported pulses.

The NPMC was also briefed on the availability of essential goods at subsidized rates at the Sasta & Sahulat Bazaars across the country.

In his concluding remarks, Minister Tarin underscored the efforts being made to keep the prices of essential items in check and the measures to ensure a smooth supply of essential commodities throughout Pakistan.

The meeting was attended by the Advisor to the Prime Minister on Commerce and Investment, the Secretary of the MoIP, the Secretary of the Ministry of NFS&R, the provincial Chief Secretaries, the Economic Advisor of the Finance Division, a Member of the Pakistan Bureau of Statistics, the Managing Director of the Utility Stores Corporation, the Chairperson of the Competition Commission of Pakistan, the Chairman of the Trading Cooperation of Pakistan, a Member of Customs Federal Board of Revenue (FBR), and other senior officers.

Source: Pro Pakistani

Sri Lankan Minister of Trade, Dr. Bandula Gunawardhana, and State Minister for Regional Cooperation, Tharaka Balasuriya, visited the Ministry of Commerce along with a top-level business delegation on Wednesday and called on Advisor to the Prime Minister on Trade and Investment, Abdul Razak Dawood. Secretary Commerce was also present in the meeting.

Abdul Razak Dawood welcomed the Sri Lankan dignitaries and businessmen. He recalled the successful Trade and Investment Conference held in Colombo in 2021 and expressed satisfaction with a continuing engagement between the business communities of the two friendly countries.

The two sides expressed a hope that the bilateral trade engagements would further strengthen the relations, as the two sides were leveraging the Pakistan-Sri Lanka Free Trade Agreement.

Dr. Bandula Gunawardhana said the Sri Lankan people had a strong affinity for the people of Pakistan. He hoped that the strong foundations would help build even stronger relations based on mutual trust and support. He said Sri Lanka was keen on expanding cooperation with Pakistan in diverse areas of trade, ICT, pharmaceuticals, mineral resources, and textile through enhanced contacts, joint ventures, investments in high potential sectors, and technology transfer initiatives.

The Sri Lankan business figures expressed satisfaction with the successful visits and B2B meetings held in Karachi, Rawalpindi, Islamabad, and Lahore.

On the recommendation of the Prime Minister of Pakistan, the delegation visited Taxila museum and the cultural heritage sites in Haripur before leaving for Colombo.

Source: Pro Pakistani