PayPal Pakistan welcomes through strategic alliance
In a historic move for Pakistan’s growing freelance community, PayPal is poised to establish its footprint in the country through a strategic partnership with an existing international payment gateway.
The announcement of this collaborative venture is expected next week, representing a significant milestone for the approximately 1.5 million freelancers and IT professionals in Pakistan, constituting the fourth-largest community globally.
Dr. Umar Saif, the Caretaker Minister for IT and Telecom, confirmed that PayPal would indirectly operate in Pakistan through this partnership. This development comes after persistent efforts by previous governments to persuade PayPal to operate within the country, initially met with resistance citing security concerns.
Dr. Saif highlighted the positive implications of this step on IT exports and remittances from freelancers, underscoring recent measures promoting a more open financial environment. He disclosed a noticeable upswing in IT exports, witnessing a 13% surge in November alone, and expressed confidence in the sustained growth trajectory.
Under Dr. Saif’s leadership, the IT Ministry has enacted several initiatives to strengthen the IT sector. These initiatives include providing smartphones through installment plans, standardizing quality tests for IT graduates, and approving the National Space Policy. Dr. Saif is optimistic about introducing 5G services in Pakistan by July 2024, facilitated by a spectrum auction offering 300 MHz.
The government’s objective is to elevate IT exports from the current $2.6 billion to around $5 billion by fostering a more open financial framework. As part of this initiative, IT companies can now retain 50% of their export revenue in dollars in a local account, streamlining international payments.
In addition to these steps, the government plans to establish 10,000 e-Rozgar centers nationwide, offering facilities for freelancers and start-ups. The recently sanctioned National Space Policy permits companies to utilize low-orbit satellites for communication services, further enhancing Pakistan’s technological landscape.
The forthcoming partnership between PayPal and an international payment gateway is anticipated to inaugurate a new era of financial opportunities for Pakistan’s freelancers and IT professionals, making a substantial contribution to the country’s economic growth and global prominence in the IT sector.
