PayPal, an American corporation that operates a worldwide online payment system to provide online payment solutions, will be brought to Pakistan by the new administration next week.
According to sources, Prime Minister Shehbaz Sharif will visit the World Economic Forum’s annual conference in Davos, Switzerland, next week, where he will meet world leaders, energy industry CEOs, and trade delegations. He’ll also meet with PayPal personnel and ask them to come to Pakistan to establish their services.
The Ministries of Finance and Information Technology and Telecommunication (MoITT) are doing study on the project, and representatives from at least one of the ministries will be present at the conference.
PM Sharif demanded a report from the Ministry of Information Technology and Telecommunications on IT reforms and the reasons why PayPal has not been brought to Pakistan during today’s Cabinet meeting.
Attempts to introduce the global online payment giant to Pakistan were undertaken in 2015 and 2019, but it rejected. PayPal’s main worry in entering the Pakistani market is the State Bank of Pakistan’s (SBP) large list of regulatory constraints and the cumbersome three-step clearance procedure.
According to sources, one of these issues is Pakistan’s inclusion on the FATF grey list. Due to FATF requirements, international electronic payment service providers must adhere to tight client regulations and avoid money laundering, or their licenses will be revoked by the SBP.
To read our blog on “Bring PayPal to Pakistan, Freelancers demands to new Govt.” click here.
