Visa Aims for Tenfold Expansion in Digital Payments Adoption in Pakistan

Visa has announced ambitious plans to increase the number of businesses in Pakistan accepting digital payments by tenfold within the next three years, according to Leila Serhan, Visa’s General Manager for Pakistan, North Africa, and the Levant. This move comes as part of a broader strategy to modernize Pakistan’s payments infrastructure, in partnership with 1Link, the country’s largest payment service provider. The collaboration seeks to streamline remittances and promote digital transactions across the nation.

With a population of 240 million, Pakistan is home to one of the largest unbanked populations in the world. According to central bank estimates, only 60% of the country’s 137 million adults or 83 million individuals have a bank account. Visa is actively investing in the development of digital payment systems to make these services more affordable and accessible for both consumers and businesses.

At present, Pakistan has approximately 120,541 point-of-sale (POS) machines, a number Visa aims to dramatically increase. “Some businesses have more than one POS machine, but our goal is to increase businesses’ acceptance of digital transactions by tenfold,” Serhan said. Visa’s strategy includes deploying technologies that can turn smartphones into payment devices, as well as facilitating various payment methods such as QR codes and contactless card payments. Visa is also looking to extend its reach beyond major cities, targeting small and medium-sized enterprises (SMEs) to broaden the use of digital payments. The partnership with 1Link is expected to enhance the remittance process by improving security and encouraging the use of official channels for overseas transactions. Pakistan is one of the top global recipients of remittances, with funds from overseas Pakistanis playing a crucial role in maintaining foreign exchange reserves and contributing to the national GDP. Serhan expressed confidence in the potential of this partnership, stating, “We’re excited to complete the technical integration in the coming months, and we believe this will be a game-changer for many consumers in Pakistan.”

Ireland Faces Decision on €13 Billion in Back Taxes from Apple Following EU Court Ruling

Following a landmark decision by the European Court of Justice (ECJ), Ireland is set to receive €13 billion ($14.4 billion) in back taxes from Apple, despite Dublin’s long-standing resistance to the windfall. The ruling finalizes a prolonged legal battle that has left Ireland in an unusual position: grappling with how to allocate a significant cash injection it had previously fought to avoid. The decision arrives at a critical political juncture, with a general election looming no later than March next year. Irish lawmakers must now decide how best to utilize these funds, a topic likely to dominate the national conversation in the coming months, especially as the country faces pressing infrastructural and housing challenges.

The ECJ ruling confirmed that Ireland granted Apple unlawful state aid, as first determined by the European Commission in 2016, and mandated the recovery of the funds. While welcomed by tax justice advocates, the decision creates a dilemma for the Irish government, which has consistently maintained that it does not offer preferential tax treatment to any companies, including Apple. The €13 billion sum, which has been held in escrow, will now be transferred to Ireland, a process expected to take several months. This development comes amid a rare budget surplus for Ireland, buoyed by strong corporate tax receipts. While some international observers warn of reputational risks for Ireland’s low-tax business model, domestic pressures are mounting to use the funds to address urgent societal needs. With elections approaching, the government is likely to face increased scrutiny on how it plans to spend this unexpected windfall, particularly in areas like housing and public services.

Tax justice advocates, including Oxfam and the Tax Justice Network, hailed the ruling as a call for broader reforms in international tax cooperation and the closing of loopholes that allow multinational corporations to avoid paying fair taxes. As one of the lowest corporate tax jurisdictions in the EU, Ireland’s handling of this decision will be closely watched both domestically and internationally.

Oil Prices Recover Amid Hurricane Francine Supply Disruption Fears

Oil prices rebounded over 1% on Wednesday, recovering some of the sharp losses from the previous day, as concerns about potential supply disruptions caused by Hurricane Francine in the U.S. Gulf of Mexico outweighed fears of weakening global demand. Brent crude futures rose by 84 cents, or 1.2%, reaching $70.03 per barrel by 0704 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed by 81 cents, or 1.2%, to $66.56 per barrel. This recovery follows a significant drop on Tuesday, when Brent crude fell to its lowest since December 2021 and WTI hit a new low for May 2023. The losses were driven by the Organization of the Petroleum Exporting Countries (OPEC) revising down its demand forecasts for both 2024 and 2025, fueling concerns over global consumption trends.

“The market rebounded autonomously after Tuesday’s substantial drop,” said Yuki Takashima, economist at Nomura Securities. He also pointed to fears of supply disruptions due to Hurricane Francine as a factor supporting prices. Despite the recovery, Takashima cautioned that oil prices would likely face continued downward pressure in the near term, as investors remain concerned about a potential demand slowdown due to economic challenges in China and the U.S. Takashima has revised his forecast for WTI to range between $60 and $80 for the rest of the year, down from a previous estimate of $65 to $85. Hurricane Francine, which has strengthened in the Gulf of Mexico, has prompted evacuations in Louisiana and caused significant production shutdowns. The U.S. Bureau of Safety and Environmental Enforcement (BSEE) reported that 24% of crude oil production and 26% of natural gas output in the Gulf were offline as of Tuesday.

In addition to OPEC’s revised demand forecasts, the U.S. Energy Information Administration (EIA) projected that global oil demand is on track to reach a new record in 2024, even though growth in output may fall short of earlier forecasts. Meanwhile, U.S. crude oil inventories provided additional support for prices, with stocks falling by 2.793 million barrels during the week ending September 6, according to the American Petroleum Institute. Gasoline inventories also declined by 513,000 barrels. China’s daily crude oil imports reached a one-year high in August, although year-to-date imports remain 3% lower than the same period last year, suggesting softer demand. This has contributed to a cautious market outlook, with Hiroyuki Kikukawa, president of NS Trading at Nissan Securities, predicting a continued bearish market due to global demand concerns, particularly in China.