Need of PayPal in Pakistan
Pakistan is country with a population of about 220 million people in total, out of which 47% are freelancers. It is ranked at fourth position in freelancers chart around the world. These freelancers are using different payment methods for their transactions such as Payoneer, Wire Transfer and Skrill (MoneyBookers) yet they have a minimum access to these payment methods/companies.
These freelancers mostly work with international clients. Most of the clients use PayPal for their transactions as it is the most convenient and secured platform. Freelancers in Pakistan have minimum access to international payments methods to accommodate PayPal services having no direct access of it in Pakistan.
What is PayPal?
PayPal provides platform to manage and move money by giving active accounts to millions of users for transaction in any form. It is available in more than 200 markets around the world providing services in more than 100 currencies. PayPal is the most secured platform for payments. It almost charges 3% for total payment used for transaction. It is the most efficient platform for freelancers to depend on.
Benefits for Pakistan‘s Economy
PayPal in Pakistan can boost the economy. How? It can provide options for local marketers to sell local products online, which then can open the gates for Pakistan to enter into the International market. This can increase the export trends that ultimately increases the market growth. It can also boost the foreign reserves in the State Bank of Pakistan. These reserves will help in boosting country’s GDP.
Unfortunately, PayPal doesn’t operate in Pakistan resulting in the loss of millions of dollars. PayPal refused to work in Pakistan because of the nature of internal working. Money laundering, credit card penetrations and hacking are also some of the reasons for the refusal.
Now that the government of Pakistan has taken steps to convince PayPal, it has eliminated these insecurities and digital export hindrance to a considerable level. This initiative will encourage the freelancers as well as local marketers.
Recently the Prime Minster of Pakistan has instructed the State Bank to increase the freelancer payment limit. The limit has now been increased to $25000 along with the establishment of an International Gateway Escrow. The government is also working on the formation of a Merchant Payment Gateway to support the local markets.