PayPal Payment Solution Discussed for Pakistan’s Freelancers

PayPal Payment Solution Discussed for Pakistan’s Freelancers

Islamabad, December 13, 2024 – A high-level meeting of the Prime Minister’s Committee on IT Export Remittances convened to address the pressing need for payment solutions, including PayPal, to support Pakistan’s freelancers. The meeting emphasized the urgency of enabling access to global payment gateways and developing localized payment systems to empower IT professionals and enhance Pakistan’s global competitiveness.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the meeting at the Finance Division. Participants included Minister of State for IT & Telecom Ms. Shaza Fatima Khawaja, Advisor to the Finance Minister Mr. Khurram Shehzad, Chairman FBR, Governor SBP, CEO of Pakistan Software Export Board (PSEB), and senior officials from the IT Ministry and Finance Division. The focus was on boosting IT export remittances and addressing payment-related challenges faced by freelancers and small IT firms.

The Finance Minister underscored the IT sector’s role as a rapidly growing industry contributing to Pakistan’s economic growth. “The IT sector has immense potential for generating foreign exchange through export remittances. Consistent policies, collaborative efforts, and targeted reforms are critical to fully realizing this potential,” he remarked.

Discussions centered on the need for seamless payment solutions to facilitate IT businesses and freelancers in remitting earnings. Participants highlighted the importance of introducing PayPal and similar payment systems to improve the ease of capital movement. The absence of global payment solutions was identified as a significant barrier to growth in IT export remittances.

It was noted that Pakistan’s 2.32 million freelancers contribute 15% of the country’s IT exports, yet only 38,000 hold bank accounts. While 500 new accounts are being opened weekly, retaining these account holders and encouraging others to participate remains a challenge. Governor SBP outlined ongoing measures to streamline account opening procedures, launch awareness campaigns, and improve complaint resolution mechanisms, all aimed at addressing payment issues in the IT sector.

To enhance remittance flows, the committee discussed leveraging the Roshan Digital Account for international payments and creating a localized payment solution to complement global platforms like PayPal. The Finance Minister highlighted that the availability of robust payment systems would significantly boost the IT sector’s growth and global competitiveness.

The committee decided to establish a working group comprising representatives from FBR, SBP, the IT Ministry, P@SHA, and the Freelancers Association. This group will focus on harmonizing data, identifying critical challenges, and ensuring continuity in the progress made by SBP and other stakeholders. Simplifying tax procedures, addressing classification issues for remote workers, and creating an enabling environment for small IT firms were identified as priorities.

The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy. He urged all stakeholders to collaborate in overcoming challenges, promoting IT exports, and establishing Pakistan as a competitive player in the global IT industry. With effective payment solutions like PayPal, Pakistan’s IT professionals and freelancers can unlock their full potential and drive significant economic progress.