In a promising announcement, Caretaker Federal Minister for IT and Telecommunications Dr Umar Saif shared that Pakistan is on the brink of receiving positive news regarding the availability of PayPal and Stripe payment gateways in the country in the coming weeks.
Dr Saif expressed this optimism during a media briefing, underscoring the importance of these services for the nation's flourishing freelancing community.
Unlocking opportunities for freelancers
Dr Saif acknowledged the challenges that have been hampering the integration of PayPal and Stripe, such as concerns related to the Financial Action Task Force (FATF) requirements.
Nevertheless, he expressed confidence in the progress being made. He stated, "I am optimistic that we will hear good news regarding PayPal and Stripe in the coming four to six weeks, and through any formula, we will provide these services to our freelancer community."
Pakistan boasts a substantial IT freelancing workforce, with approximately 1.5 million Pakistanis engaged in this sector, making the country the second-largest online workforce globally.
Boosting the IT ecosystem
He emphasised the need for a robust infrastructure to propel the IT sector's growth. He revealed the E-Rozgar program, aimed at offering interest-free loans to the private sector, with plans to establish co-working spaces for 500,000 individuals.
Pakistan's IT sector comprises about 19,000 companies, providing jobs for 150,000 individuals and generating approximately $2.5 billion in official exports.
Liberating Forex Reserves for IT Companies
One significant hurdle for IT companies in Pakistan has been the restriction on repatriating foreign currency earnings. Dr. Saif pointed out that many IT firms retained their forex reserves and revenues outside the country.
However, recent initiatives by the IT ministry and the Pakistan Software Houses Association (P@SHA) have allowed companies to retain 50% of their revenue in US dollar accounts. These companies will also be provided with corporate debit cards to facilitate international transactions.
The State Bank of Pakistan recently increased the permissible retention limit of IT exporters from 35% to 50% of their export proceeds in the Exporters’ Specialized Foreign Currency Accounts (ESFCAs).
Additionally, the utilization of these retained funds has been further simplified, allowing IT exporters to make payments from these accounts without requiring approval from the SBP or banks. These measures are expected to encourage IT exporters to bring more foreign exchange into Pakistan.
Advancements in technology and cybersecurity
Furthermore, Dr Saif revealed that the process of auctioning 5G spectrum has commenced, promising enhanced connectivity and mobile services for the nation. In partnership with the Pakistan Telecommunication Authority (PTA), the government is also introducing a cell phone financing scheme that will enable people to purchase high-end phones in installments, potentially establishing a high-end phone market in the country.
Lastly, the minister underlined the government's commitment to enhancing cybersecurity and protecting against online data theft, with plans to announce a cybersecurity authority in the next few months.
These developments signal a promising future for Pakistan's IT sector, offering new opportunities for freelancers and businesses alike.
