A new report from the State Bank of Pakistan says the lack of electronic payment services like PayPal in the country has led the country to lose up to $ 2 billion in payments related to the information technology sector and of communication.
Reports in the Express stand On Wednesday (February 6), the central bank report highlighted the absence of PayPal as the reason the country missed up to $ 2 billion in payments related to information and communications technology (ICT ). The State Bank of Pakistan released its State of Pakistan Report on the economy for the first quarter of fiscal 2018, setting ICT exports at $ 1 billion for 2018.
But the true value could reach $ 2.5 billion, according to the report, with some IT experts valuing the market even higher, at $ 3 billion.
The central bank said exports by small and medium-sized ICT companies were $ 1 billion in value, with the remaining $ 500 million going to freelance payments for workers serving clients across borders. Without PayPal or other electronic payment services, customers using Pakistan-based ICT services cannot pay for them digitally.
“The lack of PayPal is a major concern,” the report says. “Foreign employers generally do their transactions through PayPal.”
The report also highlighted the lack of documented transactions as a growing concern for the Pakistani economy.
“Anecdotal evidence also suggests that some businesses and individuals themselves bypass the proper documentation in order to stay off the radar of tax authorities or to avoid the hassle of filling out SBP’s ‘R’ form (considered both cumbersome and cumbersome). redundant), “the central bank said. wrote. “Furthermore, most companies simply opt for negligence and lack knowledge of proper export procedures.”
The report concluded that proper documentation of this additional $ 1.5 billion lost or masked due to a lack of services like PayPal could support the national economy and release Pakistan from the pressure on its foreign exchange reserves. . The problem is also preventing an increase in ICT exports for the country, the SBP said.