KARACHI: A senior member of the ruling Pakistan Tehreek-e-Insaf (PTI) government, which has been chasing PayPal Holdings Inc to start Pakistan operations, said the country was still in talks with the worldwide payments processor and “hopeful” it would launch services soon in the South Asian nation of 208 million.
As of this year, PayPal operates in about 200 markets and has 277 million registered accounts, allowing customers to send, receive, and hold funds in 25 currencies. Around 200,000 freelancers and over 7,000 registered small and medium enterprises (SMEs) would benefit if PayPal entered the Pakistani market.
The online payment industry is pegged to grow ten-fold to $500 billion by 2020, but last week, Senator Mian Mohammad Ateeq Shaikh told the Senate Standing Committee on Information and Technology that PayPal was afraid to enter Pakistan in the absence of laws to protect the company’s interests.
“The issue is under consideration, and we are hopeful [PayPal will enter Pakistan],” Muhammad Abdul Ghafar Wattoo, member of the National Assembly’s Standing Committee on Information Technology and Telecommunication, told Arab News.
PayPal, an Elon Musk-founded company, will allow Pakistani consumers to use the platform to shop online at some of the country’s most popular businesses. Merchants accepting PayPal will also be able to process both local and global payments through PayPal, getting access to the payment processor’s more than 218 million customers around the world and in Pakistan.
Industry insiders say one of the major bottlenecks to PayPal coming into Pakistan is a central bank-mandated $2 million license fee.
“For a company like PayPal, which earns between 2% to 3% on transactions, even a $100 million transaction a year could not justify a $2 million license fee,” Dawn reported this week.
Freelancer graphic designer Zoha Kaml Azmi said she was disappointed when she heard PayPal was refusing to start Pakistan operations.
“I had found a really good freelance site based in England but the client couldn’t pay me as I didn't have a PayPal account,” Azmi said. “I was very happy I could get myself registered on those freelance sites. PayPal is a global gateway that connects to the larger world. There are many freelance opportunities that I am missing because PayPal doesn’t exist in Pakistan.”
In the absence of PayPal or another internationally recognized payment gateways, Pakistani freelancers and SMEs have hacked other ways of providing services and being paid from abroad, according to the Secretary-General of the Pakistan Software Houses Association, Shehryar Hydri. Many SMEs and freelancers open accounts abroad through their relatives or friends and receive payments there, he said.
“From the government’s point of view, this is a major leakage in the system when people are forced to keep their money abroad,” Hydri said.
Pakistani technology company owners say Paypal launching operations in Pakistan could also solve the problem of stuck up payments abroad.
“Mostly clients in the US and Europe use PayPal,” said Mashal Amir, who heads Octopus Private Limited, a call center. “Whenever they float the project online they attach the conditions of having a PayPal account as well for payment. In Pakistan’s case, we miss opportunities due to non-existence of the facility and due to the payments remaining stuck for many years.”
He added: “The clients often question why they should open new account just for us on other networks when entire world works on PayPal.”
SM Arif, a financial and banking technologist, said the presence of global players like PayPal would allow access for Pakistani freelancers and companies to international markets.
“Otherwise it looks like they are operating in isolation,” Arif said. “To deal with foreigners in the international market you show the world that a conducive environment exists in your country. The big player boost the confidence of all players in that market. It makes you a part of the global economy, the world.”
Pakistan still ‘hopeful’ online payment giant PayPal will play ball
Pakistan still ‘hopeful’ online payment giant PayPal will play ball
- Around 200,000 freelancers, 7,000 small and medium enterprises will benefit if PayPal started operations in Pakistan
- Last week, a parliamentary committee said PayPal was afraid to enter Pakistan in absence of laws to protect company’s interests
Pakistan rejects India’s ‘irresponsible assertions’ after FM Jaishankar’s ‘bad neighbors’ remarks
- Indian FM Jaishankar accused Pakistan of fomenting militancy, backed New Delhi’s decision to put Indus Waters Treaty in abeyance
- Islamabad calls the remarks an attempt to deflect attention from India’s ‘troubling record as a neighbor,’ vows to safeguard rights
ISLAMABAD: Pakistan on Saturday rejected “irresponsible assertions” made by Indian External Affairs Minister S. Jaishankar after his remarks about “bad neighbors” and the 1960 Indus Waters Treaty (IWT) between the two countries.
Jaishankar mentioned about “bad neighbors” at an event in Madras on Friday and said that New Delhi had a right to defend itself. “When you have bad neighbors... if you look to the one to the West, if a country decides that they will deliberately, persistently, unrepentantly continue with terrorism, we have a right to defend our people,” he was quoted as saying by The Hindu newspaper.
The remarks came months after New Delhi blamed Pakistan for a militant attack in Indian-administered Kashmir and conducted missile strikes inside Pakistan. Islamabad, which denied involvement in the Kashmir attack, responded to the strikes, leading to a four-day military conflict that saw the use of armed drones, fighter jets and artillery between the neighbors in May.
In a statement, Pakistani foreign office spokesman Tahir Andrabi said Islamabad firmly rejects the irresponsible assertions made by the Indian external affairs minister, describing the remarks as an attempt to deflect attention from India’s own “troubling record as a neighbor that promotes terrorism and contributes to regional instability.”
“India’s documented involvement in promoting terrorist activities in the region, particularly in Pakistan, is well known. The case of Commander Kulbhushan Jadhav remains a stark example of organized, state-sponsored terrorism directed against Pakistan,” he said.
“Equally concerning are recurring instances of extraterritorial killings, sabotage through proxies, and covert support to terrorist networks.”
Jadhav, an Indian navy officer who Islamabad said had been working with Indian spy agency, RAW, when Pakistani agencies arrested him in Balochistan in 2016. He was later sentenced to death by a Pakistani military court for alleged espionage. India disputes the conviction and has challenged it at the International Court of Justice.
Pakistan and India routinely accuse each other of supporting militant groups waging attacks against the other. The two countries have fought multiple wars, including two of them over the disputed region of Kashmir, since their independence from British rule in 1947. Both rule the region in part but claim it in full.
Jaishankar also spoke on Friday about the IWT that divides control of the Indus basin rivers between the neighbors and ensures water for 80 percent of Pakistani farms. India announced in April, following the Kashmir attack, that it was putting the 1960 World Bank-mediated treaty in abeyance.
“Many years ago, we agreed to a water-sharing arrangement — the belief was it was gesture of goodwill — because of good neighborliness we were doing it … but if you have decades of terrorism, there is no good neighborliness and you don’t get the benefit of good neighborliness,” Jaishankar was quoted as saying.
Pakistan foreign office spokesman Andrabi said the IWT is an international agreement concluded in good faith and at a considerable cost.
“Any unilateral violation of the Treaty by India would undermine regional stability and call into question its credibility as a state that claims to respect international legal obligations,” he said.
“Pakistan will take all necessary measures to safeguard its legitimate rights under the Treaty.”
