SBP Open to Facilitating PayPal’s Entry into Pakistan

The Ministry of IT and Telecom Pakistan (MoIT&T) is actively engaging with PayPal to explore its entry into the Pakistani market. Finance Minister Senator Muhammad Aurangzeb recently informed the National Assembly that the State Bank of Pakistan (SBP) is also on board and is willing to support PayPal within the framework of ongoing discussions.

At present, alternatives like Payoneer and Skrill, a Paysafe Experience are available in Pakistan, offering digital payment solutions. Interestingly, PayPal PTE, a Singapore-based subsidiary of PayPal Inc., already collaborates with four Pakistani banks to facilitate home remittances. No legal barriers are preventing PayPal or any other international payment gateway from operating in Pakistan, provided they comply with Electronic Money Institution and Foreign Exchange regulations.

While the government continues to facilitate discussions, the decision ultimately lies with PayPal. Previous attempts, including an announcement by Dr. Umar Saif in January 2024 regarding a strategic partnership, did not materialize as expected. Despite ongoing efforts, PayPal has yet to establish direct operations in Pakistan. The conversation remains open, but for now, freelancers and businesses must rely on existing alternatives.