Good news for freelancers as Pakistan inks agreement with 'PayPal'

In a groundbreaking development for the freelance community in Pakistan, the caretaker government has signed an agreement with the global online payment giant, PayPal.

Interim Federal Minister for Information Technology and Telecommunication Dr Umar Saif said the deal aimed at resolving a longstanding demand from freelancers and e-commerce businesses in the country.

He added that the initiative will enable the channeling of remittances through PayPal via a third-party service within the country.

Dr Saif announced the development, saying that the Ministry of IT is prepared to implement the initiative, along with other digital initiatives, from next week January 11. 

He clarified that while PayPal is not establishing direct operations in Pakistan, an agreement has been reached to facilitate remittances through a third party.

The agreement will benefit around 200,000 freelancers, 7,000 registered small business owners, and thousands of unregistered individuals engaged in online work.

It should be noted that the American gateway company, in 2019, refused to start operations in Pakistan.

Former Finance Minister Asad Umar had also expressed commitment to bringing PayPal, a widely used online payment system operating in 190 markets globally, to the country in response to the demands of freelancers, however, the demand was not fulfilled during the last government.