The Ministry of Information Technology and Telecommunication (MoIT&T) is leading discussions with PayPal to facilitate its entry into the Pakistani market, Minister for Finance and Revenue Senator Muhammad Aurangzeb informed the National Assembly in a written reply.
It has been informed that the State Bank of Pakistan (SBP) has expressed its willingness to support PayPal in accordance with the MoIT&T’s ongoing engagements.
Aurangzeb further stated that viable alternatives to PayPal, including Payoneer and Skrill, are currently operational in Pakistan.
PayPal PTE, a Singapore-based indirect subsidiary of PayPal Inc., has agreements with four Pakistani banks to facilitate home remittances. The Finance Minister clarified that there are no legal restrictions on the entry or operations of any international payment gateway, including PayPal, as long as they comply with Pakistan’s Electronic Money Institution and Foreign Exchange regulations.
Earlier, the Minister of State for IT and Telecom acknowledged the challenges in bringing PayPal to Pakistan, emphasizing that while discussions continue, the final decision rests with the company. She highlighted that private firms operate based on their business interests, and the government can only facilitate the process, not mandate PayPal’s entry.
In January 2024, the caretaker Minister for IT and Telecom, Dr. Umar Saif, announced that PayPal would enter the Pakistani market through a strategic partnership with an international payment gateway.
He had claimed that the arrangement would allow Pakistani freelancers to receive payments via PayPal. However, it was later clarified that negotiations with PayPal were unsuccessful and that the entity would not be entering Pakistan directly or through any third-party arrangement.
Pakistan has been in talks with PayPal for several years in an effort to bring the payment giant to the country’s growing digital economy. Despite repeated discussions, the company has yet to establish direct operations in Pakistan.
