Tag: Financial Technology

  • IMF proposes solutions for streamlining Pakistan’s budget through digitisation 

    IMF proposes solutions for streamlining Pakistan’s budget through digitisation 

    The Caretaker Minister for Finance recently presided over the inaugural meeting with the International Monetary Fund (IMF) Technical Assistance Mission, focusing on the digitisation of the budgetary process.  

    The mission, led by Fazeer Rahim and Sybi Hida, senior economists from the Public Financial Management Division, along with IMF Resident Representative in Pakistan, Esther Pérez Ruiz, discussed strategies for enhancing the efficiency of the budget-making process through digitisation. 

    During the meeting, the minister highlighted the importance of tailoring the IMF’s recommendations to the specific needs of the ministry.  

    The goal is to streamline and improve the effectiveness of budgetary procedures through the integration of digital technologies. 

    The Technical Assistance Mission is committed to providing practical and implementable solutions tailored to the ministry’s requirements.  

    This collaborative effort seeks to modernise and optimise the budgetary framework, aligning it with contemporary digital practices. 

    In related developments, discussions have surfaced regarding Pakistan’s pursuit of another loan package from the IMF upon the completion of the ongoing standby agreement.  

    The caretaker government has initiated consultations for the forthcoming IMF programme, and sources indicate that talks with the IMF are likely to commence in the current month.  

    Finance ministry officials have clarified that the elected government will carry forward the measures initiated by the caretaker government.  

    It is anticipated that the newly elected government will be responsible for finalising and signing the IMF programme, assuming governance responsibilities. 

  • Here’s when PayPal and Stripe payment services will be available in Pakistan

    Here’s when PayPal and Stripe payment services will be available in Pakistan

    Dr Umar Saif, Pakistan’s interim Federal Minister for IT and Telecommunications, shared noteworthy developments on Wednesday regarding the imminent availability of PayPal and Stripe payment gateways within the country. Addressing the flourishing freelancing community, he drew attention to the current scarcity of financial tools to facilitate payments within this sector. 

    During these discussions with major industry players, including PayPal, Stripe, and Wise, a compelling case for Pakistan was presented, despite reservations, including those arising from the Financial Action Task Force (FATF). 

    Dr Saif expressed optimism, foreseeing promising updates on PayPal and Stripe services in the coming four to six weeks, heralding positive implications for the freelancer community. 

    Highlighting the substantial size and potential of Pakistan’s IT freelancing workforce, the country ranks as the world’s second-largest online workforce, boasting approximately 1.5 million active IT freelancers. Nonetheless, the sector’s growth has been stymied by infrastructure limitations. 

    To address these challenges, the E-Rozgar programme is set to offer interest-free loans to the private sector, with plans for establishing co-working spaces capable of accommodating 500,000 individuals. Dr Saif also revealed a collaborative initiative with the Higher Education Commission (HEC) to introduce standardised testing for IT graduates. 

    The significance of Pakistan’s IT sector cannot be understated, with around 19,000 companies contributing substantially to both employment and the national economy, boasting official exports worth $2.5 billion. 

    Another pertinent issue discussed by Dr Saif is the reluctance of some IT companies to maintain foreign exchange reserves and revenues abroad due to constraints on repatriating US dollars. Despite conservative estimates placing Pakistan’s IT exports at $4–4.5 billion, the reality is obscured by restrictions on US-dollar spending. 

    Fueled by cooperative efforts between the IT ministry and P@SHA, a positive development has emerged. IT companies can now retain 50 per cent of their revenue in US dollar accounts and receive corporate debit cards from banks, facilitating international payments without hindrance. 

    In addition, the State Bank of Pakistan (SBP) has played a crucial role in assisting IT exporters. The SBP recently increased the permissible retention limit for IT exporters, allowing them to hold 50 per cent of their export proceeds in Exporters’ Specialised Foreign Currency Accounts (ESFCAs) with the aim of bolstering IT and IT-enabled services exports.