The long-standing demand of freelancers in Pakistan to use PayPal for remittances has been resolved by the government. The Caretaker Federal Minister for Information Technology and Telecommunication, Dr Umar Saif, announced that the ministry is set to launch digital initiatives, including the channelization of remittances through PayPal.

Although PayPal is not officially establishing services in Pakistan, an agreement has been reached to facilitate remittances through a third party. The formal launch ceremony for this initiative is scheduled for January 11, marking a significant development for freelancers in the country.

Becoming a Tech Destination: The move to enable PayPal transactions for freelancers is part of a broader effort to position Pakistan as a ‘Tech Destination.’ The government aims to enhance the digital landscape in the country, and the inclusion of PayPal services is a notable step in this direction. By facilitating international transactions for freelancers through a renowned platform like PayPal, Pakistan seeks to attract global tech talent and foster growth in the IT sector.

Also Read: IT Minister Teases ‘Good News’ on PayPal and Stripe Coming Soon

Boosting IT Exports: The Caretaker Federal Minister highlighted various initiatives taken by the government to boost exports in the IT and telecom sector. Dr Umar Saif stated that while the sector’s official export stands at $2.6 billion, the actual figure is around $5 billion. The government has introduced policy interventions, allowing IT companies to keep 50 percent of their export revenue in dollars within Pakistan. This flexibility aims to encourage IT companies to repatriate funds and contribute to the growth of the country’s IT export revenue.

Policy Interventions for IT Companies: To further support the IT sector, the government has worked with the SIFC (State Bank of Pakistan’s Specialized Companies Division) to implement policy interventions. These interventions permit IT companies to retain a significant portion of their export revenue in dollars within Pakistan. The flexibility provided by this policy enables IT firms to meet international expenses seamlessly, including payments to foreign employees and monthly expenditures for cloud hosting, marketing, and sales on global platforms.

Positive Impact on Export Revenue: The policy interventions allowing IT companies to keep a portion of their export revenue in dollars have yielded positive results. The Minister noted that IT companies are beginning to repatriate their dollars back to Pakistan, and the country experienced a notable 13 percent increase in IT export revenue within a month. This financial flexibility aims to create a conducive environment for the IT sector’s growth and contribute significantly to the national economy.