ISLAMABAD, Pakistan: Pakistan Post and Karandaaz Pakistan on Wednesday signed a partnership agreement to digitize money orders service at Pakistan Post.
Under the agreement, Karandaaz Pakistan will provide technical support in designing a new product ‘mobile money order’ from conceptualization to deployment at Pakistan Post, said a statement issued here.
The agreement was signed between Fakir Syed Shaharyaruddin, DG Pakistan Post and Ali Sarfraz Hussain, CEO Karandaaz Pakistan at a ceremony held in Islamabad.
Khalid Masood Chaudhry, Secretary Communications and Dr. Louise Walker, Group Head Economic Growth, Department for International Development (UKAid) co-chaired the ceremony.
Karandaaz team’s technical knowledge and its funding support will assist Pakistan Post in the identification of managerial and technical requirements for the new service and will strategize and develop a complete business plan.
The project is envisioned to improve Pakistan Post’s service penetration and also create new revenue streams.
Speaking at the occasion, DG Pakistan Post said that this project would help improving Pakistan Post’s service channel penetration from 6.5 to 30 per 100,000 persons by 2020 and offer a new portfolio of financial services via the digital platform.
He acknowledged the role of Karandaaz Pakistan in furthering a key goal of the Government of Pakistan of improving financial inclusion in the country.
He said: “in view of the new opportunities in branchless and mobile transactions and e-commerce, Pakistan Post’s reform program aims to contribute to the financial inclusion of rural populations with its nationwide network of post offices by launching its own mobile money order service.
Also sharing his thoughts on the occasion, CEO Karandaaz stated: “Karandaaz is committed to enabling greater financial inclusion for currently underserved rural populations and catering to their financial needs. Through this partnership with Pakistan Post, we hope to assist in the development of a digital platform for money order which has the potential to reach the underserved with improved speed, safety and convenience. Pakistan Post’s countrywide outreach and its brand recognition are key factors that will truly help in promoting access to a wide range of financial products and services to individuals, entrepreneurs, businesses, vendors and so forth.”
The event was closed with remarks from Mr. Khalid Masood Chaudhry, Secretary Communications who emphasized the importance and benefits of digitizing payment flows to and from governments and expressed commitment to the country’s financial inclusion goals by closely working with all takeholders.
Karandaaz Pakistan (www.karandaaz.com.pk), a Section 42 company established in August 2014, promotes access to finance for small businesses through a commercially directed investment platform, and financial inclusion for individuals by employing technology enabled digital solutions. The Company has financial and institutional support from leading international development finance institutions; principally United Kingdom Department for International Development (DFID) and the Bill & Melinda Gates Foundation.
The Consultative Group to Assist the Poor (CGAP), a member of the World Bank Group, managed the start-up phase of the Company and continues to provide technical support.
The Company has three work streams, Digital Financial Services, Corporate Investment and Credit and Knowledge Management and Communications. Karandaaz Pakistan is sponsored and governed by eminent Pakistanis, and is managed by an experienced team with core expertise in international investment management and digital finance.
