The Ministry of Information Technology and Telecommunication (MoIT&T) is actively engaging with PayPal to facilitate its entry into the Pakistani market, according to Finance and Revenue Minister Senator Muhammad Aurangzeb. In a written reply to the National Assembly, the minister confirmed that discussions are ongoing, with the State Bank of Pakistan (SBP) expressing its willingness to support PayPal’s operations in line with MoIT&T’s efforts.

The Finance Minister noted that viable alternatives to PayPal, such as Payoneer and Skrill, are already operational in Pakistan. Additionally, PayPal PTE, a Singapore-based subsidiary of PayPal Inc., has agreements with four Pakistani banks to facilitate home remittances.

Aurangzeb clarified that no legal restrictions are preventing the entry or operations of international payment gateways, including PayPal, as long as they comply with Pakistan’s Electronic Money Institution and Foreign Exchange regulations.

Despite the government’s efforts, the Minister of State for IT and Telecom acknowledged the challenges in bringing PayPal to Pakistan. She emphasized that the final decision rests with the company, as private firms operate based on their business interests. The government, she said, can only facilitate the process but cannot mandate PayPal’s entry into the market.

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 claimed the arrangement would enable Pakistani freelancers to receive payments via PayPal.

However, it was later clarified that negotiations with PayPal were unsuccessful, and the company would not be entering Pakistan directly or through any third-party arrangement.

Pakistan has been in talks with PayPal for several years, aiming to bring the global payment giant to its growing digital economy. Despite repeated discussions, PayPal has yet to establish direct operations in the country, leaving freelancers and businesses reliant on alternative platforms.

The government remains hopeful that ongoing discussions will eventually lead to PayPal’s entry, which would significantly benefit Pakistan’s digital economy and its expanding freelance workforce.