PayPal: Is the online payments company really coming to Pakistan?

0

Pakistan’s Acting IT Minister Dr Umar Saif has given the “good news” to Pakistani freelancers that they will soon be able to receive payments from their clients in Western countries through PayPal.

Speaking to BBC, Dr Umar Saif said the government has made it easier for self-employed people to open bank accounts, they will be taxed less in the IT category and the policy has changed. Changes have been made at the level that will make it easier for you to receive payments.

“Anyone sitting outside, who has a PayPal wallet, will be able to send money (in exchange for jobs) to a freelancer based in Pakistan,” he says. The self-employed will receive this money in their bank account immediately.

A source familiar with the development told the BBC that PayPal is not launching its operations in Pakistan, but that the new facility is being extended to Pakistanis as a result of a global partnership whose effects are “limited to Pakistani customers.” No.’

In fact, PayPal has a strategic agreement with another American company, Pioneer, which Pioneer itself announced on its website.

Pioneer says customers will soon be able to receive PayPal payments using its service.

What did Dr. Omar Saif announce?

The Ministry of IT and Telecom recently issued a statement that acting minister Dr Umar Saif has outlined a viable plan for payment gateways from foreign countries for freelancers.

In a video shared on the IT Ministry’s Twitter account, Umar Saif says, “There has been a long-standing demand from freelancers to bring PayPal, Stripe and Wire to Pakistan so that they can easily receive their payments in Pakistan.” .’

They announce the ‘good news’ that ‘Pakistani freelancers will be able to receive payments through PayPaal’.

He said that “We have created this program in such a way that now it is not necessary to open a PayPaal account while sitting in Pakistan, but through the system that has been designed, anyone sitting outside can give you their PayPal account.” You will be able to donate money from the wallet which you will receive in Pakistan bank account at the same time.

Speaking to the BBC, Umar Saif said that freelancers working from Pakistan face difficulties in receiving small payments in the country.

He explains that freelancers could not open a bank account as long as they did not have a specific code to count their income as IT exports and therefore had to pay a 30 percent tax.

“Now the important thing is that the self-employed have been assigned a specific code through which they can receive money from abroad. These amounts will be accounted for in IT. They will only have a tax rate of 0.25 percent.

He said that with the help of the State Bank, it has been made easier for the self-employed to open a bank account. Umar Saif said that customers in Western countries often use services like PayPal or Stripe to make payments to freelancers, but in Pakistan funds cannot be received through these services.

IT Minister said we don’t need to bring PayPaal to Pakistan. We only want funds sent to freelancers via PayPal to be received in their bank account.’

Umar Saif clarified that despite this development, services like PaayPal cannot be used to transfer money within Pakistan, nor will money be sent outside Pakistan through them.

That is, PayPaal payments through Pioneer will be able to reach Pakistan as a one-way streak.

What is Paypaal?

Paypal
Paypaal

PayPal Online is mainly used for small money transfers. It is also called ‘Pay to Peer’, that is, exchanging money between people. There are very few countries in the world without PayPal.

Now some mobile payment systems have appeared, but before that this method was used all over the world. All you need is the recipient’s email address and you can send your money abroad.

For example, in Bahawalpur, Multan or anywhere, a woman makes clothes and sends them. It is easy to send, but if she wants to receive money in return, that is, her salary, she can receive it at home. In this, you don’t have to leave home and go to an easy money or Western Union counter.

So, is PayPal coming to Pakistan?

PayPal has not made any announcement about starting operations in Pakistan. However, Pioneer, a service used primarily by Pakistani freelancers, says its users will soon be able to send money to their American customers via PayPal.

It says users will send their bill to US customers and will be able to choose PayPal from the options available to send money to Pakistan.

Pioneer has said it will offer its customers good rates for withdrawing money from PayPal.

According to Taimur Hassan, a journalist who closely follows the technology sector in Pakistan, PayPal does not start its operations in Pakistan directly or indirectly, but rather it is a partnership between the two companies.

Sources familiar with the development said on condition of anonymity that Pioneer and PayPal have partnered globally and the feature will not be exclusive to Pakistani users. Also, Pakistani users cannot open a PayPal account using this feature.

It is true that freelancers based in Pakistan have long been demanding that they are facing problems in receiving funds from all over the world, including the United States, and the solution would be to introduce PayPal or other similar services in Pakistan. go

Currently, Pakistan’s exports in the IT sector amount to a few billion dollars a year, but in October last year, Dr. Umar Saif himself admitted that if training and resources are made available to earn 30 dollars a day for 1 million self-employed people in the country Then tea imports can reach 10 billion dollars.

According to experts, PayPal has not yet been able to introduce its services in Pakistan due to issues with the regulatory framework for e-money institutions in the country. Simply put, the environment for digital payments in Pakistan is not as conducive as PayPal would like it to be.

According to a study by the Pakistan Institute of Development Economics, some online payment services like Pioneer are available in the country, but there are regulatory hurdles and concerns such as money laundering, counterfeiting and transferring assets abroad.

Leave a Reply

Discover more from Jobzn

Subscribe now to keep reading and get access to the full archive.

Continue reading