The State Bank of Pakistan (SBP) has indicated its readiness to support PayPal’s potential entry into the Pakistani market, in line with the ongoing initiatives spearheaded by the Ministry of Information Technology and Telecommunication (MoIT&T). This development marks a crucial advancement in addressing the persistent requests from freelancers, e-commerce enterprises, and digital entrepreneurs who are in search of efficient international payment solutions.
During a session of the National Assembly, Senate Finance Minister Muhammad Aurangzeb revealed that MoIT&T officials are actively negotiating with PayPal regarding its market entry into Pakistan. A significant meeting was held by the Secretary of MoIT&T on December 13, 2024, which is considered a pivotal moment in these discussions.
Currently, payment services in Pakistan are accessible through alternative platforms such as Skrill and Payoneer, with the Finance Minister confirming their availability to users of digital payments. PayPal PTE, an indirect subsidiary of PayPal Inc., is based in Singapore and collaborates with four Pakistani banks to meet the local remittance needs of Pakistani citizens.
Aurangzeb stated that foreign payment gateways, including PayPal, are allowed to operate in Pakistan as long as they adhere to the country’s Electronic Money Institution (EMI) and Foreign Exchange regulations.
The MoIT&T has previously recognized the challenges related to PayPal’s introduction to Pakistan, noting that the final decision rests with the company, despite ongoing negotiations. The Ministry emphasized that while the government can facilitate the process, it cannot compel PayPal to enter the market, as private companies act according to their business interests.
In January 2024, Dr. Umar Saif, the caretaker Minister for IT and Telecom, announced that PayPal would enter the Pakistani market through a strategic alliance with an international payment gateway. He asserted that this agreement would enable Pakistani freelancers to receive payments via PayPal.
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