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A recent announcement by Pakistan’s Special Investment Facilitation Council (SIFC) claims the enablement of PayPal in Pakistan as part of a trial initiative aimed at boosting the digital economy. However, despite this optimistic framing, PayPal is still not officially available in Pakistan.
The SIFC initiative allows 10,000 freelancers to receive payments through a third-party mediator, not directly via PayPal’s platform. While this has been described as a key achievement, financial experts and members of the freelance community are urging caution over the misleading narrative.
PayPal in Pakistan: Mediator Model Explained
Under the current arrangement, payments sent from abroad via PayPal are deposited into local bank accounts through a third-party facilitator. This means that Pakistani freelancers do not get their own PayPal accounts and do not directly access PayPal’s services.
Critics have raised multiple concerns about this workaround:
- Additional Fees: Mediators may impose extra charges, reducing freelancers’ earnings.
- Unclear Terms & Conditions: The intermediary may reject payments or limit access without transparent guidelines.
- No Direct Support: Users must deal with the mediator’s support team, not PayPal, for any disputes or issues.
- Risk of Service Disruption: Past services like Sadapay Biz were abruptly shut down, raising concerns about reliability.
Why PayPal Still Isn’t Officially in Pakistan
Despite recurring claims by various government officials, PayPal has not launched its services in Pakistan. Industry experts cite several key barriers:
- Regulatory Hurdles: Pakistan’s strict AML and KYC compliance requirements deter global platforms.
- Business Viability: PayPal may not see the Pakistani market as profitable enough to invest in a full-fledged rollout.
- Fraud and Identity Verification Concerns: Ongoing issues with digital identity and fraud increase perceived risk.
What Freelancers Should Know
While the SIFC initiative may offer temporary relief for some freelancers, it’s essential to understand that this is not true PayPal access. It is a workaround, with inherent limitations and potential risks.
Freelancers are advised to explore reliable alternatives like Payoneer or Wise, which are fully operational in Pakistan and offer transparent fee structures and direct support.
Until PayPal officially enters the Pakistani market, freelancers must remain cautious and well-informed. The current solution may offer limited utility, but it’s no substitute for the secure, scalable payment system that the freelance economy in Pakistan truly needs.
