SIM registration: China Mobile launches first biometric system

Zong, the brand name for CM Pak, will install 30,000 biometric devices across Pakistan. PHOTO: FILE

KARACHI: 

In a first practical step towards addressing the threat posed by unverified or unregistered SIMs – which, according to security agencies, are used in crimes and terrorist activities – China Mobile Pakistan launched the country’s first biometric verification system at one of its customer support centres here on Thursday.

Zong, the brand name for CM Pak, will install 30,000 biometric devices across Pakistan, Zong’s Chief Public Relations Officer Sikandar Naqi told the media. This would cost the company $5 million in terms of equipment expenses while there would be recurring cost as well, he said.

Starting from Karachi, he said the technology would be gradually introduced in all franchises and customer support centres of Zong across the country.

The development came in the wake of directives from the Pakistan Telecommunication Authority (PTA), asking all mobile operators to complete the deployment of biometric devices at their customer support centres and franchises in Karachi by November 30 and all over the country by December 20.

The launch of the biometric device for verification and issuance of new cellular SIMs coincides with the hearing of the Karachi violence suo motu case at the Supreme Court of Pakistan’s Karachi registry. The court, which also summoned the head of the telecom regulator and other officials to explain their progress in addressing the issue of unauthorised SIMs, will continue the hearing on Friday.

“This is the beginning of a system whereby the relationship between a SIM card and its owner would be clear,” PTA Chairman Syed Ismail Shah said at the launch ceremony. This would ensure that the buyer of a new SIM and the person against whose name it is issued are the same, he said.

Shah, who was in the city in response to SC’s notice in the Karachi violence case, was flooded with questions about unverified SIMs, the upcoming spectrum auction and unblocking of social video-sharing website Youtube.

With the prevailing law and order situation in Karachi, in fact the country, this kind of mechanism was inevitable, he said. The new system might not completely stop the crime, but it would certainly reduce it by restricting the use of unauthorised SIMs, he said.

The system can verify the number of SIMs registered against a CNIC number, complying with the regulation that limits it to a maximum five SIMs against one identity card.

Under the system, customers would be required to visit the mobile operator’s customer support centre or franchise where the device is deployed and provide his finger prints. This biometric information would be verified from the National Database and Registration Authority (NADRA)’s database – a process that will take about 15 seconds.

If the information matches the customer’s CNIC data at NADRA, his SIM will be activated.

Asked about any possible loopholes, Naqi said, “We have developed an SOP for the biometric verification system and tried to make it as foolproof as possible.”

SIM verification mechanisms were first introduced in 2007-08, according to Zong. Initially, all SIMs were verified by NADRA through an offline channel. In 2009, a new method was introduced where customers would activate their SIMs by dialing 789 to verify their record from NADRA. From 2009 to 2012, a text-based SIM verification process was introduced in four different phases.

However, none of these measures helped the regulator overcome the problem of unregistered SIMs. Hence, the PTA is now encouraging the telecom operators to start installing biometric devices with a foolproof system.

While it is certainly the first biometric verification system launched by a telecom firm in Pakistan, the PTA claims it is the first of its kind in the world.

“Our studies show that this is the first biometric verification system for SIM registration in the world,” PTA DG Enforcement Abdul Samad said. “We have launched it, the countries facing similar problems may follow this model.

Steps underway: Sugar mills to cater to needs of big power consumers

1,500 megawatts, is the quantity of electricity expected to be produced by co-generation projects. PHOTO: FILE

ISLAMABAD: In a bid to bridge the gap between the demand and supply of energy, the government has decided to allow private power producers – called co-generators – to supply electricity directly to bulk industrial consumers according to the national co-generation policy for the sugar industry.

Necessary steps are being taken for a proper and specific policy for the co-generators to clear the way for direct supply of electricity to bulk purchasers, sources say. In this regard, a “wheeling agreement” has been finalised with a power distribution company.

Sugar millers are also pressing for an amendment to the co-generation policy for including coal as fuel for such projects, believing there is a huge potential for power production with the help of coal throughout the year.

The millers have also sought similar incentives as enjoyed by independent power producers (IPPs) like guarantees for purchase of power and making payments, but members of the Economic Coordination Committee (ECC) have dismissed the demand.

Under the National Policy of Power Co-Generation (Bagasse/Biomass and Coal) for Sugar Industry 2013, the government hopes to add 1,000-1,500 megawatts of electricity to the national grid.

The government approved the power co-generation policy for the sugar industry on March 6 this year for development of co-generation projects. The policy permits the projects that rely on renewable energy sources including bagasse and biomass, but does not allow coal consumption.

Discussing a summary prepared by the water and power ministry, the ECC members, in a meeting held on November 6, said representatives of the Pakistan Sugar Mills Association were calling for a new policy for co-generation projects, which should be based on bagasse, biomass and coal as fuel sources.

The ECC members were of the view that the grant of fiscal and financial incentives, which were offered to the independent power plants, to co-generation projects might prompt other coal-based power producers to demand similar concessions.

Since the co-generation projects were not purely based on renewable energy, it did not appear to be mandatory to process their cases through the Alternate Energy Development Board (AEDB), they said.

Apart from these, a proposal about dispensing with the need for pre-qualification, issuing a letter of intent and conducting feasibility study appeared to be contrary to the provisions of the National Power Policy 2013, the ECC was told.

After considering the summary of the water and power ministry, the ECC constituted a committee to review the proposals.

When approached for comments, the water and power ministry spokesman did not respond to the call.

LPG price likely to go up by Rs42 per kilo

The likely hike translates into an increase of Rs504 for a domestic and Rs1,940 for a commercial cylinder that would now be priced at Rs2,097 and Rs8,069 respectively. PHOTO: CREATIVE COMMONS

ISLAMABAD: Following a hike in global gas prices, the price of Liquefied Petroleum Gas (LPG) is likely to go up by Rs42 per kilogramme, said a spokesman for the LPG Association of Pakistan yesterday.

Saudi Aramco, an oil company that produces, manufactures, markets and ships crude oil, natural gas and petroleum products to meet global demand, had announced on Thursday the Contract Price (CP) for LPG at $1,175 per ton for the month of December. The increase of $275, from the rate in November, is a testimony to the rising LPG demand as several countries head into the winter season.

However, the price impact in Pakistan may be as high as $335 per ton, as local LPG producers maintained the Saudi Aramco CP of October, which was $840, even in November.

“In the event of local LPG producers matching the December CP, prices could rise by as much as Rs42,725 per ton [Rs42 per kilogramme inclusive of taxes),” said Belal Jabbar, the LPG Association of Pakistan spokesman.

The likely hike translates into an increase of Rs504 for a domestic and Rs1,940 for a commercial cylinder that would now be priced at Rs2,097 and Rs8,069 respectively.

Similarly, retail rates in different parts of the country would be as follows — Sindh and Balochistan Rs168 per kilogramme, Punjab Rs178 per kilogramme, Azad Jammu and Kashmir and Gilgit Baltistan Rs188 per kilogramme.

“We urge the government and LPG producers to maintain their current prices to provide some relief to the consumers as only 30% of LPG is imported. The remaining is produced locally,” added Belal.

Temporary move: Russia lifts ban on kinnow imports

The Russian government imposed the ban on Pakistani agriculture imports a couple of months ago over concerns of fruit and vegetable diseases. PHOTO: FILE

KARACHI: 

Russia – one of the biggest markets for Pakistani kinnow – temporarily lifted the ban from Pakistani Kinnow imports for this season, fruit exporters said.

The Russian government imposed the ban on Pakistani agriculture imports a couple of months ago over concerns of fruit and vegetable diseases. The removal of the ban is the result of an extensive talk between the two governments. Nevertheless, the restriction on import of potato from Pakistan would remain intact until the phyto-sanitary issues are resolved.

The Russian team will visit Pakistan in January 2014 to inspect the facilities and quarantine methods and practices. The team will see safety measures in place for diseases in the country. Exporters say Pakistan may lose the major market if Russian market is not open this season.

Bilateral relations: Canada eyeing business opportunities in Pakistan

$700m is the current bilateral trade between Pakistan and Canada. PHOTO: FILE

LAHORE: President of Canada-Pakistan Business Council (CPBC) Samir Dossal said that the two countries shared great bilateral potential, pointing out agriculture and energy as the sectors that needed to be untapped to increase trade volume.

Pakistan-born Canadian businessmen, who have expertise in different segments of businesses in Canada, are willing to invest in Pakistan, provided the government gives them a fair ground. To seek such opportunities, Dossal is visiting Pakistan to attend ‘Vision 2025’.

“Pakistan and Canada are engaged in bilateral trade worth $700 million but the figure could easily touch a billion-dollar mark”, said Dossal.

During his meeting with Punjab Chief Minister Shahbaz Sharif, Dossal discussed the solar technology projects in Pakistan. He said that Canadian businessmen favored the Punjab for investment as it is relatively safer in terms of security.

“The Punjab chief minister has accepted my invitation to come and visit Ontario in June and that would open up great investment opportunities in both countries.”

He said that there was great demand for Pakistani cotton, mangoes and vegetables in North America.

“The government of Ontario understands the value of Pak-Canada relationship and the government will extend its utmost cooperation,” he said, while adding that there were various opportunities presented during the ‘Vision 2025’ conference.

The conference saw good participation with over a 100 business bodies in attendance.

“Projects like this could go a long way in realising the actual potential of business in Pakistan. I will present my feedback to the business community in Ontario, which will pave ways for future investment programmes between the two countries.

Government business ties to stimulate investment: Iqbal

“Pakistan has great potential and an encouraging environment for foreign direct investment in various sectors,” says Ahsan Iqbal. DESIGN: CREATIVE COMMON

KARACHI: Federal Minister for Planning, Development and Reforms Ahsan Iqbal has emphasised the need for forging a close working relationship between ministries and the business class – a step that will stimulate investment in Pakistan.

He said this during a visit to the Overseas Investors Chamber of Commerce and Industry (OICCI) on Thursday.

“Trade and commerce is the backbone of national economy and providing maximum facilities to create conducive business environment for local and foreign investors is the government’s top priority,” he said.

“Pakistan has great potential and an encouraging environment for foreign direct investment in various sectors,” said Iqbal, who is also the deputy chairman of Planning Commission.

His ministry, which is also responsible for undertaking reforms, is working on a seven-point programme including a three-tier energy plan.

In the short run, energy security is aimed at increasing the efficiency of existing plants and improving demand management. In the medium term, coal and liquefied natural gas will be utilised as a source of power generation and in the long run the government will increase reliance on cheaper hydroelectric power by constructing new dams.

The government also wants to develop internal drivers of growth instead of depending on foreign loans and aid. This can be achieved by increasing the tax-to-GDP ratio, promoting savings, boosting exports and foreign exchange reserves.

Iqbal said his programme concentrated on developing social and human capital including increased focus on health, education and youth, transition from low value-added to high value-added exports and establishment of small and medium enterprises to create employment opportunities for the youth.

The government also plans to upgrade infrastructure to create countrywide and regional connections for a better distribution system with added emphasis on upgrading and overhauling the railway system.

Iqbal sought the assistance of OICCI, an association of 190 multinationals operating in Pakistan, in immediately filling the capacity gap in the planning ministry to lay a sound foundation and fast-track the Vision 2025 and the next five-year plan.

Responding to the minister’s call for assistance, OICCI President Kimihide Ando said important organisations like the IMF and business delegations from other countries always consulted
the OICCI to get its opinion on the business climate in Pakistan.

Foreign exchange: Reserves hit 12-year low, SBP data reveals

The alarming decrease in foreign exchange reserves is indicative of Pakistan’s widening current account deficit, which increased to $1.3 billion in the first four months of fiscal 2014 (July-October).

KARACHI: 

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased to $3.4 billion, hitting its lowest level since November 2001 when they had been less than $3.5 billion, according to data released yesterday.

Total liquid foreign reserves held by Pakistan on November 22 amounted to $8.7 billion, the SBP data revealed. Out of the total liquid reserves, net foreign exchange reserves held by banks other than the SBP amounted to $5.3 billion.

Speaking to The Express Tribune, economist Sayem Ali said the sharp decline in foreign exchange reserves was due to the hefty oil import payments and external debt repayments, despite the country registering record remittances and a strong growth in exports.

“Aggressive monetary tightening, higher import duties and cash margins on imports would have eased the pressure on foreign exchange reserves,” said Ali. “However, the government has so far not shown any urgency to arrest the decline in reserves.”

The alarming decrease in foreign exchange reserves is indicative of Pakistan’s widening current account deficit, which increased to $1.3 billion in the first four months of fiscal 2014 (July-October), a stark comparison to the surplus of $14 million in the corresponding period last fiscal year.

As a consequence, Ali said, the Pakistan rupee is witnessing a sharp depreciation. The rupee traded at Rs108.55 a dollar on Thursday, which translates to a depreciation of 10.2% since June when one dollar was worth Rs98.50.

“The IMF agreement was expected to avert a balance of payment crisis. But unfortunately, the upfront disbursement was only $550 million as opposed to nearly $3 billion upfront disbursement in the case of the 2008 loan. Hence, foreign exchange reserves have continued to decline despite the IMF loan agreement,” he added.

Pakistan has still not received the second tranche of the current IMF loan, which will be equal to $544 million.

Notably, the SBP-held foreign exchange reserves, which cover less than one month of imports, do not include the $396 million repayment that the country made under the IMF/SBA facility on November 26. Ali estimated that the SBP reserves would decrease to $3 billion by the end of November.

“This is a critical level and, unless the trend is reversed, the rupee will continue to devalue and the cost of borrowing – such as LCs on imports, Eurobond, trade finance – will keep rising, thus hurting businesses.”

Meanwhile, according to Global Securities analyst Umair Naseer, the least the government can do now is to speed up the process of the 3G auction licence and the privatisation of public-sector enterprises to realise inflows of foreign exchange.

“There appears to be no short-term solutions to the problem,” said Naseer, adding that other major sources of foreign exchange reserves include foreign direct investment, exports and remittances, which require macroeconomic stability and implementation of long-term policy initiatives.

He said relations with the United States will also play an important role in determining the level of foreign exchange reserves in the coming months, as Pakistan can receive Coalition Support Fund payments of roughly $1 billion in the current fiscal year.

“I believe short-term reserves will remain under pressure, but the situation may improve in the fourth quarter (April-June) of fiscal year 2014,” Naseer added