Caretaker Federal Minister for IT and Telecommunications, Dr. Umar Saif, announced that Pakistan is likely to receive “good news” regarding the availability of PayPal and Stripe payment gateways in the country within the next four to six weeks.
He acknowledged the concerns of these companies, including those related to the Financial Action Task Force (FATF) regulations, but expressed optimism about overcoming these obstacles to provide these payment services to Pakistan’s growing freelancing community.
Pakistan has a significant number of IT freelancers, with approximately 1.5 million individuals engaged in this sector, making it the second-largest online workforce. However, the lack of infrastructure and access to essential payment gateways has been a limiting factor for these freelancers.
Also Read: Efforts to Bring PayPal and Stripe to Pakistan Underway: IT Minister
Dr. Umar Saif also discussed other initiatives to support the IT sector, including the E-Rozgar program, which will provide interest-free loans to establish co-working spaces for 500,000 people. Pakistan’s IT sector consists of around 19,000 companies, employing 150,000 people and contributing approximately $2.5 billion in official exports. However, some companies face challenges in repatriating their earnings due to restrictions on US dollar spending.
To address these challenges, IT companies will be allowed to retain 50% of their revenue in US dollar accounts, and they will be provided with corporate debit cards to facilitate international payments. These measures aim to encourage IT exporters and freelancers to boost export earnings and bring additional foreign exchange into Pakistan.
Dr. Saif also highlighted the importance of enhancing the IT workforce’s skills, and standardized testing for IT graduates will be introduced, with those who pass the test provided with mandatory apprenticeships in the IT industry. Furthermore, a cell phone financing scheme and a cybersecurity authority are also in development to enhance the digital landscape in Pakistan.
The government is also working on auctioning the 5G spectrum and launching a Pakistan Startup Fund to facilitate investments in the startup sector. These measures are aimed at promoting innovation, entrepreneurship, and technological development in Pakistan.
Overall, these initiatives and the potential availability of PayPal and Stripe in Pakistan are expected to have a positive impact on the country’s IT and freelancing sector.
