IMF report warns of ‘exceptionally high’ economic risks in Pakistan

Morning! Remember when Tik Tok was all the rage and some of us took a stand against the trend by refusing to download the app but were totally okay with spending hours on Instagram reels? Turns out we were not the only ones..

Meta says that Reels had reached 140 billion daily views with an annual revenue run rate projected at $10 billion. So, our resistance to being cringy resulted in Zuckerberg being richer?

In this week’s edition:

💳 Target Vs Visa

 🌈 No rainbows in sight for Pak

🚫 No explanation, no access

🤼 The toxic relationship b/w politics and tech

- The Itla Squad 💼

Business

Global 🌎️

Time to end the Visa, Mastercard reign?

The Credit Card Competition Act in the US is back in the spotlight (after no vote in the last Congress), with retailers and payment processors vying for consumer attention.

What’s in the bill: The bill aims to foster competition among credit card processing networks by giving merchants the option to choose networks beyond Visa and Mastercard.

Retailers want change and payment processors are worried: Amazon, Shopify, Target, Walmart, and other companies join forces to back the bill, blaming soaring business costs due to credit card fees that make consumers pay more. Visa, Mastercard, and Capital One are against it, claiming that it will hurt consumers by cutting credit card rewards and fraud protections.

Why it matters: You know those sneaky credit card fees? They've doubled in the last ten years, reaching a whopping $160.7 billion in 2022. The new bill wants to give US citizens more choices for payment networks, so Visa and Mastercard don't rule the game.

Looking ahead: Nobody knows how this fight will end. However, as the battle rages on in Congress, consumers will be watching closely to see how it will impact their credit card experiences.

TLDR: The US Credit Card Competition Act is back in focus, pitting retailers against payment processors. It aims to offer more network choices to merchants beyond Visa and Mastercard. Retailers want lower fees, but processors fear losing rewards. The outcome remains uncertain, leaving consumers curious about its impact on their credit card experiences.

What else is new in news

✶The IMF sprinkles some optimism on the global economy, giving it a little growth boost for 2023. Lower inflation gives the economy a boost, but their 2024 forecast is unchanged at 3%.

Local 🇵🇰

No rainbows in sight for Pak’s financial future

The International Monetary Fund (IMF) report on Pakistan is here, and it's dishing out some informative insights on the current state of affairs and what lies ahead (spoiler: it’s not sunshine and rainbows)

IMF highlights that Pakistan's economic challenges are complex and multifaceted, with exceptionally high risks. The country has faced significant shocks over the past year, including floods, the war in Ukraine, and fiscal and external pressures.

The report’s key points:

• To keep the country running smoothly, Pakistan must find over $80 billion in the next three years. They can't rely on easy shortcuts like "relief" or quick "growth" fixes. The IMF warns that having such huge financing needs can be risky for the country's debt.

• The IMF didn't hold back in criticizing the State Bank of Pakistan. They slammed the central bank, saying it "lacked clarity" despite being fully aware of the mounting pressures on the economy.

• The energy sector is facing a severe crisis, with a large circular debt burden. The IMF recommends addressing the drivers of circular debt flow and resolving issues in the power and gas sectors.

Looking ahead: Pakistan got a serious wake-up call from the IMF in this report. The next 2-3 years will be a huge challenge for whoever is in charge. But there's a glimmer of hope, as the IMF hints at the possibility of another program with the government once the current one is completed.

TLDR: The IMF report on Pakistan reveals the country's complex economic challenges and warns of exceptionally high risks. Pakistan needs over $80 billion in the next three years, and easy shortcuts won't cut it. The State Bank of Pakistan faces criticism for lacking clarity on mounting economic pressures. The energy sector is in crisis with a burden of circular debt.

News Flash

✶ According to the official data released on Friday, short-term inflation had a significant year-on-year surge of 29.21% for the week ending on July 26. This increase was mainly due to steep rises in electricity and liquefied petroleum gas prices.

Tech

Global 🌎️

User privacy is in fashion and Apple wants to be its model

Apple has been all-in on user privacy in its App Store, setting rules on data collection and introducing app labeling. Now, they're stepping up their game by tightening Developer Program policies to stop third-party apps from secretly tracking users without consent.

New rules (but without Dua Lipa’s approval): Apple's new rule is simple: no explanation, no access. Meaning: If developers can't justify why they need specific data, they might find their app in trouble.

The what’s, how’s and why’s: 

• To do this, Apple is making changes to the way developers can use certain tools (called APIs) that allow apps to interact with the iPhone and iPad. These changes will take effect with the release of iOS 17.

• Some developers have been misusing these APIs to perform "device fingerprinting." This technique creates a unique fingerprint for each user's device, allowing developers to track their activities across different apps, even if the user has opted out of tracking.

It’s not new: Apple already prohibits this kind of tracking, but they are now adding extra security measures to enforce the rule. They are making certain APIs off-limits for developers, unless they have a valid reason for using them.

Zooming out: Apple plans to introduce this new policy gradually. Developers will be notified if they fail to provide a valid reason for using restricted APIs starting in the fall. However, app rejections won't begin until the following spring, giving developers time to adjust to the new rules.

TLDR: Apple is doubling down on user privacy in the App Store by tightening Developer Program policies to stop third-party apps from tracking users without consent. They're restricting certain APIs misused for device fingerprinting, a technique tracking users across apps. The new policy rolls out gradually, giving developers time to comply.

What else is new in news

✶NASA is taking streaming to the stars with its own "NASA+" service. Coming soon, it'll stream live launches, stellar documentaries, and exclusive original shows straight to your screen, all ad-free and at no cost.

Local 🇵🇰 

Govt POV: When things get hard, just shut off the internet 🤷‍♀️

Turns out: When politics gets messy, tech takes a beating.

Surfshark's latest report reveals Pakistan's unfortunate position among the worst countries for internet restrictions in 2023. With three out of 42 global restrictions, the country faced clampdowns following the arrest of former Prime Minister Imran Khan on May 9.

Social Media Clampdown: During this period, popular platforms like Twitter, Facebook, Instagram, and YouTube experienced limitations in Pakistan. The country also grappled with temporary cellular network interruptions in the aftermath of the arrest.

Pakistan's Rank: The Surfshark report places Pakistan in third position globally for internet restrictions, with Iran and India ahead. The majority of these shutdowns occurred in Asia, with Iran facing the highest number at 14 incidents.

Ranking Rundown: India closely followed Iran with nine confirmed shutdowns, mainly related to various protest events. Surprisingly, the report includes two more shutdowns in 'Jammu and Kashmir,' ordered by the Indian government, bringing their total count to 11 within six months.

Unrest and Shutdowns: Around 30 of these new disruptions were driven by public dissent over social and political issues. This highlights the internet's critical role as the primary platform for sharing essential information during times of civil unrest.

TLDR: Surfshark's report reveals Pakistan's internet restrictions in 2023, with three clampdowns following Imran Khan's arrest. Social media hit, ranked third globally, with 30 shutdowns sparked by public dissent, highlighting the internet's critical role during civil unrest.

Tech tour of news

✶ The Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to swiftly accelerate the integration process between FBR's online filing system and Provincial Revenue Authorities. The objective is to establish a unified sales tax return and a single web portal for enhanced efficiency.

More interesting Itla (اطلاع) we consumed:

🎭 We needed a good laugh so we watched the top 5 most-watched live sketches of Saturday Night Live’s Season 48. We definitely didn’t click on it because it had Pedro Pascal on the thumbnail…