Pakistan’s IT sector is currently experiencing a historic surge, with exports reaching $3.8 billion in FY 2024–25, yet start-ups and freelancers continue to face “crippling payment barriers”. Despite the country ranking fourth globally in freelance talent, the absence of trusted international payment platforms is costing the workforce millions in lost income through hefty margins and indirect repatriation channels.
The Core Issues: Missing Giants and Native Limitations
The most prominent hurdle is the official absence of PayPal and Stripe, which limits the ability of young companies to receive international payments through proper, transparent channels. While the government has previously raised foreign currency retention limits for IT exporters to 50%, the lack of a central, globally accepted gateway remains a primary bottleneck.
For e-commerce entrepreneurs, the frustration is compounded on platforms like Shopify. Although Shopify operates in Pakistan and charges local merchants standard global fees, the native Shopify Payments gateway remains unavailable. This forces merchants to rely on third-party providers that frequently reject Pakistani applications or suffer from technical failures, such as Paymob declining customer orders despite currency integration.
Regulatory and Structural Roadblocks
The path for global gateways to enter the market is obstructed by a “long list of regulatory restrictions”. Under current State Bank of Pakistan (SBP) rules, Electronic Money Institutions (EMIs) must maintain an initial startup capital of PKR 200 million and undergo a rigorous three-stage approval process. While concerns regarding money laundering and FATF have often been cited as reasons for this caution, research suggests PayPal operates in several countries with higher risk profiles than Pakistan, implying that the issue may be more focused on regulatory quality and market environment.
Current Workarounds and Emerging Solutions
In the absence of a direct fix, the industry has adopted several strategic workarounds:
- Offshore Registration: Many businesses now register legal entities in the US, UK, or UAE to access Stripe and PayPal, using services like Payoneer or Wise to withdraw funds to local Pakistani accounts.
- Third-Party Shopify Integrations: Shopify-approved applications like UNUMPAY have emerged as a solution to bridge the gap, allowing merchants to enable local banking channels such as HBL, Alfalah, and EasyPaisa.
- International Wallets: Platforms like 2Checkout and Payoneer currently serve as the primary lifelines for supporting Pakistani merchants in accepting international payments.
- Local Innovation: The rise of digital wallets like SadaPay and NayaPay provides a tech-hungry generation with Mastercard and Visa edges, while the SadaBiz platform specifically helps freelancers receive USD at market-friendly rates.
The Path Forward
The SBP’s recent instructions for enabling the Raast Person-to-Merchant (P2M) service marks a significant step toward a transparent digital trail and faster settlements. However, for the IT business to truly boom, the government must conclude its ongoing negotiations with at least three major global payment gateway companies. Ultimately, transforming Pakistan into a “strong business case” for these giants will require optimising regulations, improving internet infrastructure, and creating a friendlier market environment that prioritises digital inclusivity.