From Dollar to Yuan, Pakistan makes strategic currency shift in oil trade

Morning! Remember when Rukhsana phuppo used to ask, "Who's your favorite parent?" Well, if your answer was ‘baba’, you’re lying.. and we’ve got the receipts. According to the National Retail Federation, consumer spending on Father's Day was projected to be $12.8 billion less than on Mother's Day, a staggering 36% drop 😬

In this week’s edition:

✈️ 500 jets

㊗️ In the Ring: Yuan vs. Dollar

⬛ Reddit gone dark

📡 Telcos wiring in the money

- The Itla Squad 💼

Business

Global 🌎️

India: “Can I have 500 jets, please?”

IndiGo, India's dominant carrier, is set to purchase 500 passenger jets from Airbus. The deal, announced at the Paris Air Show, is the largest purchase agreement in commercial aviation history.

Why does it matter?

• The order highlights the immense potential of the Indian aviation market.

• IndiGo's ambitious purchase demonstrates its commitment to democratizing affordable air travel.

• Airbus Chief Commercial Officer highlights the impact of the deal on millions of people in the rapidly expanding aviation market. 

Zooming out: The expansion of the fleet also supports India's aspiration to establish itself as a major hub for connecting flights. The Indian government has been actively promoting the operation of long-haul aircraft, and it is investing $12 billion in airport infrastructure development. With India's population surpassing China's, the country presents significant growth opportunities for airlines, particularly due to the increasing number of first-time fliers.

TLDR: IndiGo, India's leading airline, is buying 500 passenger jets from Airbus, marking the largest purchase in commercial aviation history. This highlights India's aviation potential and IndiGo's commitment to affordable air travel. The expansion supports India's goal of becoming a major flight hub, with a growing population and increasing first-time fliers.

What else is new in news

✶ PwC's survey reveals an increasing number of workers looking to switch jobs in the coming year due to financial strain and inflationary pressures. Additionally, 42% of respondents intend to negotiate higher salaries to combat the escalating cost of living.

Local 🇵🇰

Yuan: 1 , US dollars: 0

Move over dollars, Pakistan has found its new 'yuan' love in the world of trading. The country recently paid for Russian oil using yuan, signaling its participation in the global de-dollarization movement.

What does this mean? This move highlights the growing acceptance of the yuan as a cross-border payment tool and suggests a shift away from the US dollar. Experts believe that if the US dollar's influence wanes, a diversified monetary system may emerge in the future.

Why the break-up with US dollars? Since the beginning of 2023, the global de-dollarization trend has been gaining momentum. Worries about the stability of the US dollar and doubts about the country's creditworthiness have prompted numerous countries, especially emerging economies, to move away from relying solely on the greenback.

Pak is not alone: Other countries, including Iraq, have also adopted the yuan for trade settlement. The trend reflects the strengthening role of the yuan as an international settlement mechanism. As global de-dollarization gains momentum, countries are actively diversifying their currency systems. One of the main driving forces can be that the share of the US dollar in official reserves has reached a three-decade low.

TLDR: Pakistan's payment for Russian oil in yuan signals its participation in the de-dollarization trend, reflecting growing acceptance of the yuan and concerns about the stability of the US dollar.

News Flash

✶ The government has approved 13 old renewable energy projects, totaling 700MW. They are now awaiting formal approval from the Council of Common Interests (CCI). This comes as a 600MW solar project in Muzaffargarh received poor investor response.

Tech

Global 🌎️

Reddit gone dark

We are not alone: The unprecedented inflation of 2023 is forcing even tech giants like Reddit (known for its diverse community-based content sharing) to think about having multiple streams from which they can get money in.

Backing up: Nearly 9,000 subreddits went dark last week and more than 4,000 remained dark on Friday, including communities with tens of millions of subscribers like r/music and r/videos in a show of protest.

A digital protest? Yup. Instead of coming up on roads, Reddit users made their anger known the digital way against the new Reddit policy that charges certain third-party apps for accessing data on the site. This policy charges certain third-party apps for accessing data on the site, which threatens customization options and tools used by volunteer moderators to keep the platform clean and free from unwanted content.

Reddit isn’t bending: Reddit's CEO, Steve Huffman, is standing firm on the company's decision and argues that financially supporting high-usage third-party developers who access Reddit's data is not sustainable. The new fees will only be imposed on eligible apps with high usage limits, while the majority of API users will not be required to pay for access.

This isn’t new: Apart from Reddit, Twitter also faced criticism after it discontinued free API access earlier this year.

Looking ahead: While some subreddits have ended their blackout after 48 hours, others are determined to continue their protest until Reddit meets their demands, which include lower API charges.

TLDR: Thousands of subreddits went dark to protest the new policy charging certain third-party apps for accessing site data. Users voiced concerns about limited customization options and tools. Reddit's CEO stands by the decision, citing financial sustainability. While some subreddits have resumed activity, others remain in protest until demands, including lower API charges, are met.

What else is new in news

✶Imagine teddy-bears-equipped-with-AI engaging in conversation and narrating customized bedtime stories to your children? That scary but intriguing picture might come to reality as the cost of artificial intelligence drops, according to the world’s biggest toy manufacturer.

Local 🇵🇰 

Telcos bringing in the money

The telecom sector in Pakistan proved to be a cash cow, contributing Rs 378 billion to the national exchequer from July to December FY2023. This substantial sum was generated through a combination of taxes and fees levied within the telecom industry.

According to Pakistan’s Economic Survey (PES):

1. Investments: From 2018 to 2022, the telecom sector attracted over $6.3 billion in investments in Pakistan. However, investments were lower at $422.0 million during the first two-quarters of FY2023.

2. Who's getting the big bucks? Zong 4G, a major player in Pakistan's telecom sector, holds 24.07% of the total market share. With quality services and a growing number of subscribers, Zong 4G has contributed to the national revenue.

3. Subscriber stats: As of March 2023, Pakistan had a total of 197 million telecom subscriptions (mobile and fixed) with a teledensity of 83.2 percent. Zong 4G alone snagged 44.19 million subscribers across the country and 1.5 million in Azad Jammu and Kashmir (AJK) and Gilgit Baltistan (GB).

4. 5G on the horizon: The Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), and Ministry of IT and Telecommunication (MoITT) are working together for the successful launch of 5G in Pakistan. Zong 4G has already conducted trials and become the first operator to officially test 5G services in the country.

TLDR: The telecom sector in Pakistan made a significant contribution of Rs 378 billion to the national exchequer in six months. Investments in the sector reached $6.3 billion from 2018 to 2022. Zong 4G holds a substantial market share and has a large number of subscribers. Pakistan is gearing up for the launch of 5G, with Zong 4G leading the way in testing.

Tech tour of news

✶NADRA has launched 'IRIS,' an iris scanning biometric identification system. It will complement other biometric systems like fingerprint and facial identification, according to a NADRA spokesperson.

More interesting Itla (اطلاع) we consumed:

🎀 As if we weren’t already excited about the Barbie movie. This video by Architectural Digest where Margot Robbie takes us behind the scenes of ‘Barbie’ for an exclusive tour of the Barbie Dreamhouse shows the brilliant attention to detail and craftsmanship that went into the design.