In a groundbreaking development, the IT Minister, PayPal, and the Pakistani government have come together to address the persistent demand from freelancers. This initiative allows freelancers to seamlessly channel their remittances through the widely-used international gateway, PayPal.
Caretaker Federal Minister for Information Technology and Telecommunication, Dr. Umar Saif, shared this positive news with journalists, signaling a significant milestone for the country’s digital landscape. The minister revealed that a series of digital initiatives are set to launch in the upcoming week, with a key focus on channelizing remittances through PayPal. The overarching goal is to position Pakistan as a prominent ‘Tech Destination.’
Previously, freelancers faced hurdles in facilitating payments due to the absence of suitable financial instruments. While clarifying that PayPal itself is not establishing a direct presence in Pakistan, the minister emphasized that a pivotal agreement has been reached. This agreement enables the channelization of remittances from PayPal through a third party. The formal launch ceremony for this strategic collaboration is slated for January 11.
Highlighting the government’s efforts to boost exports in the IT and telecom sector, the minister emphasized that the sector’s official export figure stands at $2.6 billion. However, he revealed that the actual value is closer to $5 billion. A significant portion of this amount is parked abroad to cover international employee salaries and monthly expenses for services like cloud hosting, marketing, and sales on global platforms such as Google, Amazon, and LinkedIn.
The minister disclosed collaborative efforts with the SIFC and the State Bank to implement a major policy intervention. This intervention allows IT companies to retain 50 percent of their export revenue in dollars in a local account. This move facilitates international expenses without restrictions, contributing to a positive impact on the sector’s revenue. Already, IT companies are repatriating their dollars, resulting in a notable 13 percent increase in export revenue within just one month.
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