Interbank Rupee Rate Must Match Grey Market, IMF says

Morning! Get ready to show some love to the amazing women in your life because tomorrow is International Women's Day! It's time to celebrate all the badass ladies out there, so maybe lend a hand to your mom in the kitchen instead of just posting about it on social media?

In this week’s edition:

📡 Internet to be pricier for low-income US households

💰 IMF’s latest demand to secure its funding

🛡️ US’s new cybersecurity strategy & role of the TechGiants

⚠️ SECP’s warning against fake loan-giving apps

- The Itla Squad 💼

Business

Global 🌎️

Closing the digital divide? What is that?

Looks like some families are about to be charged extra for their daily dose of cat videos and internet memes as internet might get pricier for low-income families in the US.

Rewind: In the last two years, the US government has provided discounted broadband internet to millions of low-income households through two programs. Currently, over 16 million households are receiving a $30 discount through the Affordable Connectivity Program (ACP), which is expected to run out of funds next year. Another program, the Emergency Broadband Benefit (EBB), was launched in February 2021 and provided a $50 subsidy to around 9 million households. The ACP replaced the EBB program in December 2021 under President Joe Biden.

How did it work? To qualify for the broadband discount programs, households must have an income that does not exceed 200% of the federal poverty guidelines or receive other government aid, such as food stamps or a Pell Grant.

Looking ahead: While some stakeholders are less optimistic about securing funding for this, some believe that “once the government starts paying for something they usually end up paying for it forever”.

TLDR: US low-income families may soon pay more for internet as the government discount program, currently giving a $30 discount, runs out of funds next year. To qualify, households must meet income requirements or receive government aid. The future funding of the program remains uncertain.

What else is new in news

✶ Y-Combinator (an American technology startup accelerator) recognizes Razorpay as the only Indian company to appear in the Top 15 Breakthrough Global Companies List.

Local 🇵🇰

IMF to Pak’s rupee: Just go grey

They say going grey is the new trend, but we are pretty sure they weren't talking about Pakistan's currency exchange rates.

IMF has made a new requirement for securing its funding - it is asking that the rupee interbank rate should be the same as the one in the grey market.

What does it mean? It means that the IMF has requested that the interbank rate be tied to the exchange rate used at the Afghan border (also known as the Peshawar market) which is…. very high.

It kinda makes sense. IMF suggested that the grey market rate should be the actual rate, rather than the interbank or open market rate. This is because the current trade and availability of dollars are only taking place in the grey market, as the government has imposed restrictions on foreign exchange. Despite the government's crackdowns on the grey market, the dollar is still being traded there. Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan (ECAP) argues that policy reform is needed, rather than relying on crackdowns, as these have inadvertently supported the grey market. So, IMF has recommended that the rupee and dollar rates be brought in line with the grey market rate.

TLDR: IMF requires rupee interbank rate to be linked to high Peshawar market rate for funding. Grey market rate is suggested as actual rate due to limited dollar trade in official markets. Policy reform are needed instead of crackdowns on grey market and IMF recommends aligning rates with grey market.

News Flash

✶Beware of contaminated cough syrups. DRAP (The Drug Regulatory Authority of Pakistan) started urgent recall of seven of the ethylene glycol-tainted products, including KOF Relief Syrup.

Tech

Global 🌎️

Biden to TechGiants: Stop being insecure

The White House has issued a new cybersecurity strategy that includes cracking down on "insecure" software and addresses the responsibility of large tech companies in preventing cyberattacks, among other topics, according to President Joe Biden's new cybersecurity plan.

What the document includes: The document calls to shift responsibility for defending against cyberattacks from individuals, small businesses, and local governments to tech companies. China is also singled out as the biggest cyber threat.

What is the goal? The goal is to create a more secure digital ecosystem and prevent national security consequences due to a lack of security measures. The strategy also calls for action against ransomware and the illegal cryptocurrency exchanges that enable it. If implemented, this could lead to expanded cybersecurity requirements for digital infrastructure companies and software makers being held liable for failures to protect critical systems. 

What spooked Biden? It is possible that Tik Tok’s growing popularity in the US might have played a role. TikTok's parent company is based in China, which has led to growing concerns over data privacy. As a result, TikTok has been banned from government devices by Congress and removed from state computer networks, including those at public universities, by several governors.

TLDR: New cybersecurity plan shifts responsibility for preventing cyberattacks to tech companies, aims to create a more secure digital ecosystem, and calls for action against ransomware and illegal cryptocurrency exchanges. TikTok's parent company, based in China, has led to growing data privacy concerns resulting in bans from government devices.

What else is new in news

✶To promote safety and address concerns of lawmakers and regulators, TikTok will introduce a 60-minute automatic screen-time limit for users under 18.

Local 🇵🇰

If it’s too good to be true, it’s probably an app...

Asaan qarza be making it asaan for people to have trust issues. Pakistan's Security and Exchange Commission (SECP) has warned against using fake loan apps on Google Play Store. Asaan Qarza is one of 74 fraudulent apps claiming to offer "100% online" loans.

What do they do? Loan apps offering low-interest rates are asking users to give access to their phone data including contact lists and picture galleries. These predatory apps harass borrowers and breach their data privacy, which is illegal and punishable under the Prevention of Electronic Crime Act, 2016 and the Anti Money Laundering Act, 2010.

So, what’s the fix: SECP reported 75 unauthorized loan apps in Jan-Feb and asked Google and Apple to remove them from their app stores. SECP collaborated with local regulators, PTA, FIA, and SBP, and requires digital lenders to obtain a license and certification to operate in Pakistan.

Which apps to trust, then? Geo Fact Check was informed by the financial regulatory authority that there are only 10 micro-credit apps that are considered legitimate, such as Finja, Muawin, Credit Per, Easy PK Loan, Zoodpay & ZoodMall, Qisstpay, CreditCat, RazCash, Abhi, Barwaqt, Udhar-Paisa, and Zaroorat Cash.

TLDR: SECP warns against fake loan apps like Asaan Qarza on Google Play Store, which breach users' data privacy. SECP collaborated with regulators to report and remove 75 unauthorized loan apps. Only 10 legit micro-credit apps like Finja and CreditCat are approved.

Tech tour of news

✶ Data protection might be coming into fashion in Pakistan too. Nadra unveiled "Ijazat Aap Ki," Pakistan's inaugural data protection service, which empowers individuals to control their personal data.

More interesting Itla (اطلاع) we consumed:

🎬  Netflix's latest docuseries "The Romantics" is a must-watch for any 90's kid who grew up on Indian cinema (did you know that it took months to convince SRK to do DDLJ since he wanted to stick to action/villain roles rather than as a romantic lead?)

📝 Time magazine has released its "2023 Women of the Year" list just in time for International Women's Day, and guess who made the cut? The 24-year-old Pakistani climate activist Ayisha Siddiqa!