PayPal enters Pakistan via strategic partnership
PayPal is set to establish its presence in Pakistan through a strategic partnership with an existing international payment gateway, catering to freelancers and IT professionals. The joint venture announcement is expected next week.
Caretaker Minister for IT and Telecom, Dr Umar Saif, stated that PayPal will operate indirectly in Pakistan through this collaboration, marking a significant development for the country’s growing freelance community (approximately 1.5 million), the fourth-largest globally.
The move comes after persistent efforts by previous governments to convince PayPal to operate in Pakistan, which faced resistance citing security concerns.
Saif highlighted the positive impact on IT exports and freelancer remittances, attributing the uptick to recent measures supporting a liberal financial regime.
Read Govt to introduce PayPal, Stripe
He added that the inflows from IT export have already jumped by 13% for November and will continue to grow. The IT Ministry has undertaken various initiatives, including providing smartphones through instalment plans, standardised quality tests for IT graduates, and approval of the National Space Policy. Saif expressed confidence in launching 5G services in Pakistan by July 2024, with a spectrum auction offering 300 MHz.
The government aims to boost IT exports from $2.6 billion to approximately $5 billion by facilitating a more liberal financial regime. As part of this effort, IT companies can now keep 50% of their export revenue in dollars in a local account, easing international payments.
Additionally, the government plans to launch 10,000 e-Rozgar Centres across the country, providing facilities for freelancers and start-ups. The National Space Policy has been approved to enable companies to use low-orbit satellites for communication services.
Published in The Express Tribune, January 6th, 2024.
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