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| IT Minister Teases Upcoming Positive Developments for PayPal and Stripe |
In a much-anticipated announcement, the Caretaker Federal Minister for IT and Telecommunications, Dr Umar Saif, has hinted at some exciting developments regarding PayPal and Stripe payment gateways coming to Pakistan. This announcement has created a buzz in the country, especially among the growing community of freelancers who have been eagerly waiting for these platforms to make their services accessible in Pakistan.
Addressing the media alongside Caretaker Information Minister Murtaza Solangi, Dr. Saif highlighted the critical need for financial instruments that can facilitate payments for Pakistan's thriving freelancing community. While PayPal and Stripe are global leaders in online payment processing, their entry into the Pakistani market has faced various challenges, including concerns related to the Financial Action Task Force (FATF).
Despite these challenges, Dr. Saif remains optimistic about the prospect of PayPal and Stripe entering the Pakistani market within the next four to six weeks. He stated, "Through any formula, we will provide these services to our freelancer community." This news inspires the estimated 1.5 million Pakistanis working as IT freelancers, making Pakistan the second-largest online workforce globally.
Dr Saif acknowledged that a lack of adequate infrastructure has hindered the growth of Pakistan's IT sector. To address this, the government is launching the E-Rozgar program, providing interest-free loans to the private sector. This initiative aims to establish co-working spaces for 500,000 people, fostering collaboration and innovation.
The interim minister shed light on the impressive growth of Pakistan's IT sector. With around 19,000 IT companies operating in the country, the industry provides employment opportunities for 150,000 individuals and contributes significantly to exports, with an official export value of $2.5 billion.
Dr. Saif highlighted the issue of IT companies keeping their foreign exchange reserves and revenues outside Pakistan due to restrictions on the repatriation of US dollars. He revealed that, through the efforts of the IT ministry and P@SHA, companies have now been permitted to retain 50% of their revenue in US dollar accounts. These companies will also be provided with corporate debit cards to make international payments quickly.
Recently, the State Bank of Pakistan (SBP) took a significant step to support IT exporters by increasing the permissible retention limit of IT exporters from 35% to 50% of their export proceeds in the Exporters' Specialized Foreign Currency Accounts (ESFCAs). This change, coupled with simplified usage of the retained funds, is expected to encourage IT exporters and boost foreign exchange earnings.
While the demand for the IT sector remains high, Dr. Saif acknowledged a shortage of skilled workers in Pakistan. To address this, the government is collaborating with the Higher Education Commission (HEC) to introduce a standardized test for IT graduates. Those who pass the test will be eligible for mandatory apprenticeships in the IT industry, enhancing the workforce's quality.
In addition to encouraging established IT companies, the government is focusing on fostering the startup ecosystem. Dr Saif announced the upcoming launch of the Pakistan Startup Fund, which will facilitate investments in Pakistani startups in collaboration with global venture capitalists. This initiative will pave the way for billion-dollar startups in Pakistan in the coming years.
Dr. Saif also mentioned initiating the auction process for the 5G spectrum, highlighting the government's commitment to modernizing the telecommunications sector. Furthermore, a cell phone financing scheme, launched in partnership with the Pakistan Telecommunication Authority (PTA), will allow people to purchase high-end phones in instalments, creating a market for high-end devices in the country.
Recognizing the importance of cybersecurity, Dr. Saif disclosed plans to establish a cybersecurity authority in the next few months. This move aims to enhance protection against online data theft and safeguard digital assets in Pakistan.
Dr. Umar Saif's announcement brings hope and excitement to Pakistan's IT and freelancing community. The imminent arrival of PayPal and Stripe, coupled with government initiatives to support the sector, signals a promising future for the IT industry in Pakistan.
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