SBP Ready to Facilitate PayPal: Is It Finally Coming to Pakistan?

The State Bank of Pakistan (SBP) has expressed willingness to facilitate PayPal in line with the Ministry of Information Technology and Telecommunication’s (MoIT&T) engagements with the company. Minister for Finance and Revenue, Senator Muhammad Aurangzeb, made this statement before the National Assembly. He confirmed that MoIT&T is leading discussions with PayPal regarding its potential entry into Pakistan. According to the sources, a key meeting on the subject took place on December 13, 2024, chaired by the Secretary of MoIT&T.

SBP clarified that there are no restrictions on the entry or operations of any international payment gateway, including PayPal, as long as they comply with Electronic Money Institutions and Foreign Exchange Regulations. The central bank reaffirmed its support for any facilitation required in this regard.

Pakistan already has alternative digital payment solutions such as Payoneer and Skrill, which are functioning smoothly in the country. Additionally, “PayPal PTE,” a company incorporated in Singapore and an indirect subsidiary of PayPal Inc., has agreements with four Pakistani banks. It is currently mobilizing remittances to Pakistan under home remittance agreements.

The lack of PayPal’s presence in Pakistan has been a long-standing concern, particularly for freelancers and e-commerce businesses. Despite multiple past attempts to bring PayPal to Pakistan, the company has not yet formally launched its services. However, the renewed efforts by MoIT&T and SBP’s willingness to facilitate the process signal potential progress.

Industry experts believe that bringing PayPal to Pakistan would boost the digital economy by providing freelancers and businesses with easier access to international payments. However, the presence of alternative services may influence PayPal’s decision. The government’s engagement with PayPal is being closely monitored, and further developments are expected in the coming months.