Business

Salary advance platform Abhi issues MENAP region fintechs’ first Sukuk bond

Published

2 years ago

Farwa

In a first for a fintech in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, Pakistani startup Abhi has raised funds from its first-ever Sukuk bond.

The salary advance platform raised Rs2 billion or $6.8 million, which its Chief Executive Officer (CEO) and Co-Founder Omair Ansari termed an industry first.

In an interview with Bloomberg, Ansari said demand exceeded expectations with subscriptions reaching twice the anticipated amount.

The Karachi-based startup which was founded in 2021 aims to enable employees of its partners to withdraw salary advances based on their accrued wages at any time. It also offers working capital to companies.

Abhi raised funds at a $90 million valuation within a year of its launch and entered the United Arab Emirates in December. The startup is currently in the process of buying a stake in courier company Universal Network Systems Ltd.

Pakistan’s startups have seen funding dry up this year amid one of the country’s worst economic crises. Several startups have closed in recent months, including Airlift and Vavacars, while others such as Maersk-backed Trella have announced their exit from the country.

The government has been scrambling to revive a stalled loan programme with the International Monetary Fund (IMF) for a desperately needed economic bailout, while its foreign exchange reserves plummet to a critical level.

Meanwhile, the country has the fastest inflation in South Asia, with people burdened especially with rising food and fuel costs. Amid the economic crisis, people are accessing salaries from Abhi’s platform much more than before while companies have also started accessing working capital more frequently, Ansari said.

“With this new funding, we can help ease the financial burden on struggling companies.

“The market is still so deep in Pakistan as banks have stepped away when it comes to lending to the real economy. We believe this is the environment for us to really grow,” the CEO said.

Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

Published

3 days ago

Farwa

Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

Business

Despite economic gains, PSX remains strong.

Published

3 days ago

Farwa

Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

Business

Pakistan resolves to meet benchmarks, and the IMF promises economic help.

Published

3 days ago

Farwa

In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.