PayPal, a well-known online payment system, has recently forged a substantial agreement with Payoneer, a prominent digital payment service in Pakistan. This collaborative effort is geared towards optimizing the procedure for freelancers to receive payments from international sources, effectively tackling a persistent demand within the country.
Payoneer’s Role in Remitting Freelancers’ Earnings
Payoneer is designated to function as the intermediary responsible for the secure transfer of funds earned by freelancers from international clients directly into their respective local bank accounts. This arrangement is anticipated to prove advantageous for the estimated 4 million freelancers engaged in operations within Pakistan, 1.5 million of whom are engaged on a permanent basis.
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Easing the Financial Journey for Pakistani Youth
The burgeoning trend of freelancing, notably among the technologically proficient Pakistani youth, has emerged as a notable phenomenon in the nation. Through this collaborative initiative, the freelancing community is positioned to encounter a more accessible and efficient avenue for receiving compensation for their services.
Government’s Support and IT Ministry’s Role
The Ministry of Information Technology and Telecom has played a pivotal role in facilitating the establishment of this partnership. An additional agreement with PayPal has been formalized to construct a framework for implementing and operationalizing the collaboration. The Ministry is scheduled to unveil the mechanism on January 11, 2024, signifying a noteworthy milestone for the freelancing community in Pakistan.
Dollar Accounts
A pivotal outcome arising from this collaborative venture is the newfound capability for freelancers to establish dollar-denominated accounts. It is imperative to note, however, that a significant stipulation accompanies this privilege, requiring freelancers to maintain 50% of their earnings in US dollars within these accounts. This development has been widely recognized as a notable achievement by the caretaker government, effectively responding to a substantial demand within the freelancing community.
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In a video message, Dr. Umair Saif, the Federal Minister for IT & Telecom, communicated the encouraging news, highlighting that freelancers are no longer obligated to initiate a PayPal account. The refined mechanism enables individuals situated outside Pakistan to transfer funds through a PayPal account, facilitating a seamless reception of the funds in Pakistani banks.