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The National Database and Registration Authority (NADRA) is reportedly engaged in trying to convince the Interior Minister Chaudhry Nisar Ali Khan to reactivate the Memorandum of Understanding (MoU) it signed with Mastercard, an online payment processing company, in Davos, Switzerland, by maintaining that financial transactions would not grant access to the national database, it was learnt.
The Interior Minister on January 27 suspended the MoU between MasterCard and NADRA amid serious concerns that it may grant the foreign online payment processing company access to the national database. Sources on condition of anonymity claimed that NADRA has almost convinced the Interior Minister that MasterCard would not have any access to the national database under the proposed project. The Authority has also reportedly shared details of the proposed agreement with senior officials of State Bank of Pakistan (SBP) and may sign an agreement with MasterCard as soon as concerns of relevant entity/minister are addressed.
Under the proposed agreement, NADRA would develop an icon on its website id.nadra.gov.pk. The MasterCard holder abroad would enter his/her card number, amount to be sent and the CNIC number of the recipient in the icon. The recipient will collect the amount from any of NADRA's 9,000 Sahulat centers across the country after presenting their CNIC, followed by biometric verification.
Spokesman of Ministry of Interior, however, expressed his inability to confirm this report adding that he was not aware of any such development. He said that without the approval of the government and consultation with relevant stockholders, NADRA cannot sign the agreement. When asked could NADRA have it approved directly by the Prime Minister by bypassing the Interior Minister, he said that in any eventuality the Interior Minister would have to approve the summary first before sending to the Prime Minister for final approval.
"Without the approval of Interior Minister, NADRA cannot sign this agreement", he said.0
An official of SBP said that without the clearance of the regulator, the MoU signed between NADRA and Mastercard can not be made operational. The SBP has to be taken on board to enable the use of the banking system for this purpose. "When anything comes to us in black and white then we will be able to comment on it", he added.
According to a press release issued by Mastercard, on January 18, Mastercard, a leading technology company in the global payments industry, announced a strategic collaboration with Pakistan's NADRA Technologies to optimise National ID cards with electronic payments functionality.
The move, it was stated, would allow Pakistani citizens to carry out financial transactions and receive government disbursements by utilising the unique 13-digit identification number of their identity card. Citizens will also be able to use their National ID to send and receive domestic and international remittances, eliminating the requirement to physically visit a bank branch or currency exchange house to meet their money transfer needs, the press release added. Under the terms of the agreement, Mastercard will also use its next-generation payment processing technologies to process all online payments made by Pakistani citizens for the issuance of National ID cards, passports or any other document provisioned by NADRA Technologies.

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