PayPal is not coming to Pakistan because of FATF objections,
PayPal has decided not to come to Pakistan, according to the Ministry of Information Technology and Telecommunication, because the Financial Action Task Force (FATF) opposes terrorism financing, and PayPal’s international gateway already serves most of Pakistan’s clients with accounts in the UAE and other countries.
“The remaining clients in Pakistan are not building a business case for PayPal,” senior ministry officials said at a briefing to the Senate Standing Committee on Information Technology and Telecommunication on Tuesday.
The parliamentary group expressed serious reservations in its meeting with Kauda Babar about the problems faced by young Pakistani internet freelancers, notably in the processing of financial transactions and foreign remittances.
Officials from the ministry briefed the committee about Pakistani online freelancers and the problems they face. The committee also looked into the ministry’s actions in regards to the processing of financial transactions and remittances for online freelancers in particular.
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Committee was also informed that the Ministry of Commerce is nearing completion of an incentive package to attract new startups, as well as international gateways other than PayPal to facilitate and attract to the country.
A member of the IT committee informed the committee that freelancers are experiencing Issues with the State Bank of Pakistan and the Federal Board of Revenue (FBR).
Freelancers are not currently registered or documented. They are afraid of being persecuted by government Institutions if they register. “Freelancers are ready to pay taxes but would prefer not to be harassed,” an IT ministry official added.
According to the committee’s Afnanullah Khan, unregistered freelance work might lead to money laundering.
The committee expressed concern that rather than facilitating freelancers, barriers were erecting.
In answer to a question from the committee about PayPal’s arrival in Pakistan, representatives from the IT Ministry told them that PayPal has declined to offer its services in Pakistan. Pakistan will be excluded from PayPal’s payment network for the next two years because the FATF has Objected to its payment system.
Afnanullah Stated, The government should use the FinTech forum, To facilitate freelancing payments from abroad.
Babar stated to the members of the committee that Pakistani freelancers making crores of rupees without the support of the government. He went on to say that this industry is associated with lower and middle-class youth. With government assistance and encouragement, these young people have the potential to become the country’s most valuable resource. With government help and encouragement, these young people can become the country’s most valuable resource.
Senators Sana Jamali, Shahadat Awan, Zeeshan Khanzada, Afnanullah Khan, Palwasha Mohammad Zai Khan, Seemee Ezdi, Naseema Ehsan, Rubina Khalid, secretary Ministry of Information Technology and Telecommunication, chairman PTA, and officials from the NITB were present at the committee meeting.
