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Govt keen to facilitate Pakistanis living in Gulf: Rana Mashhood
Govt keen to facilitate Pakistanis living in Gulf: Rana Mashhood

Business Recorder

time2 days ago

  • Business
  • Business Recorder

Govt keen to facilitate Pakistanis living in Gulf: Rana Mashhood

KARACHI: The federal government is keen to facilitate overseas Pakistanis and Pakistani youth in Gulf countries, mainly by providing a technological solution that enables them to send remittances to their families with ease through a domestic payment scheme, PayPak. This was stated by Rana Mashhood Ahmad Khan, Chairman Prime Minister Youth Programme (PMYP) in a meeting held with stakeholders recently here, including Ibrahim Amin, Chairman of PAFLA, and Najeeb Agrawalla, CEO of 1LINK. The federal government is working extensively to serve Pakistanis in the country and overseas by addressing their core issues through all innovative, technological, and affordable means. In this regard, the government is keen to explore strategic collaboration on empowering overseas Pakistani youth through digital remittance services and expanding PayPak's reach under the Prime Minister's Youth Programme, he said. A significant number of overseas Pakistanis comprise youth and they are assets of the country because of their commendable role in contributing to the economy of the country; hence, the PM Digital Youth Hub is exploring various options to honour their services for the nation with dedicated facilities and offerings, Chairman PMYP said. On the occasion, Najeeb Agrawalla said, "We aim to take initiatives to facilitate secure and structured remittance flows from non-resident Pakistani workers, especially those based in Saudi Arabia, UAE and other Gulf countries, while also promoting the use of PayPak for Hajj, Umrah, and other cross-border transactions including 1BILL service for non-resident Pakistanis." As a major payment service provider, 1LINK proposed extending its technological expertise and platform capabilities to support the development and implementation of both initiatives, he said. PAFLA Chairman Ibrahim Amin highlighted that over 4 million Pakistanis reside in Gulf countries and strive to contribute honestly to the national economy through their hard-earned income. Unfortunately, many of them lack access to reliable and user-friendly technological payment solutions. PAFLA, in collaboration with Pakistani diplomatic missions, Pakistan's banks, and different agencies, will do its best efforts to approach freelancers, blue- and white-collar Pakistani workers through outreach and engagement efforts across Gulf countries, he added. Pakistan received over $38.3 billion in remittances from different countries in the financial year 2024-25. Overseas Pakistanis residing in different Gulf countries contribute a major share to the remittance. Copyright Business Recorder, 2025

Islamabad plans digital remittance solutions for Pakistanis in Gulf, elsewhere via PayPak scheme
Islamabad plans digital remittance solutions for Pakistanis in Gulf, elsewhere via PayPak scheme

Arab News

time3 days ago

  • Business
  • Arab News

Islamabad plans digital remittance solutions for Pakistanis in Gulf, elsewhere via PayPak scheme

KARACHI: The Pakistani government is planning to facilitate overseas Pakistanis, particularly those in Gulf countries, by providing a technological solution that would enable them to send remittances through a domestic payment scheme, PayPak, the 1Link payment gateway system said on Monday, citing the Prime Minister Youth Programme (PMYP) chief said on Monday. PMYP Chairman Rana Mashhood Ahmad Khan said this in a recent meeting with stakeholders, including 1Link CEO Najeeb Agrawalla and Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin, in the country's commercial capital of Karachi. Pakistan received over $38.3 billion in remittances from different countries in the financial year ending in June, with Pakistanis residing in Gulf countries contributing a major share to this amount. Khan said the government was working extensively to serve Pakistanis in the country and overseas by addressing their core issues through innovative, technological and affordable means. 'The government is keen to explore strategic collaboration on empowering overseas Pakistani youth through digital remittance services and expanding PayPak's reach under the Prime Minister's Youth Programme,' he was quoted as saying by 1Link. Khan said Pakistanis living abroad were playing commendable role in contributing to the economy and the PM Digital Youth Hub was exploring various options to honor their services with dedicated facilities and offerings. Launched in 2016 by 1Link, PayPak is Pakistan's first and the only domestic payment scheme (DPS), making Pakistan the 28th country in the world to have its own domestic payment system. It aims to spur financial inclusion and digitization across the country. 'We aim to take initiatives to facilitate secure and structured remittance flows from non-resident Pakistani workers, especially those based in Saudi Arabia, UAE and other Gulf countries, while also promoting the use of PayPak for Hajj, Umrah, and other cross-border transactions including 1Bill service for non-resident Pakistanis,' 1Link CEO Agrawalla said. As a major payment service provider, he said, 1Link proposed extending its technological expertise and platform capabilities to support the development and implementation of both initiatives. PAFLA Chairman Amin said there were over 4 million Pakistanis residing in Gulf countries who had been contributing to the economy through their hard-earned income, adding that many of them lacked access to reliable, user-friendly technological payment solutions. 'PAFLA, in collaboration with Pakistani diplomatic missions, Pakistan's banks, and different agencies, will do its best efforts to approach freelancers, blue- and white-collar Pakistani workers through outreach and engagement efforts across Gulf countries,' he said.

Islamabad plans digital remittance solutions for Pakistanis in Gulf via PayPak scheme
Islamabad plans digital remittance solutions for Pakistanis in Gulf via PayPak scheme

Arab News

time3 days ago

  • Business
  • Arab News

Islamabad plans digital remittance solutions for Pakistanis in Gulf via PayPak scheme

KARACHI: The Pakistani government is planning to facilitate overseas Pakistanis, particularly those in Gulf countries, by providing a technological solution that would enable them to send remittances through a domestic payment scheme, PayPak, the 1Link payment gateway system said on Monday, citing the Prime Minister Youth Programme (PMYP) chief said on Monday. PMYP Chairman Rana Mashhood Ahmad Khan said this in a recent meeting with stakeholders, including 1Link CEO Najeeb Agrawalla and Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin, in the country's commercial capital of Karachi. Pakistan received over $38.3 billion in remittances from different countries in the financial year ending in June, with Pakistanis residing in Gulf countries contributing a major share to this amount. Khan said the government was working extensively to serve Pakistanis in the country and overseas by addressing their core issues through innovative, technological and affordable means. 'The government is keen to explore strategic collaboration on empowering overseas Pakistani youth through digital remittance services and expanding PayPak's reach under the Prime Minister's Youth Programme,' he was quoted as saying by 1Link. Khan said Pakistanis living abroad were playing commendable role in contributing to the economy and the PM Digital Youth Hub was exploring various options to honor their services with dedicated facilities and offerings. Launched in 2016 by 1Link, PayPak is Pakistan's first and the only domestic payment scheme (DPS), making Pakistan the 28th country in the world to have its own domestic payment system. It aims to spur financial inclusion and digitization across the country. 'We aim to take initiatives to facilitate secure and structured remittance flows from non-resident Pakistani workers, especially those based in Saudi Arabia, UAE and other Gulf countries, while also promoting the use of PayPak for Hajj, Umrah, and other cross-border transactions including 1Bill service for non-resident Pakistanis,' 1Link CEO Agrawalla said. As a major payment service provider, he said, 1Link proposed extending its technological expertise and platform capabilities to support the development and implementation of both initiatives. PAFLA Chairman Amin said there were over 4 million Pakistanis residing in Gulf countries who had been contributing to the economy through their hard-earned income, adding that many of them lacked access to reliable, user-friendly technological payment solutions. 'PAFLA, in collaboration with Pakistani diplomatic missions, Pakistan's banks, and different agencies, will do its best efforts to approach freelancers, blue- and white-collar Pakistani workers through outreach and engagement efforts across Gulf countries,' he said.

'Tax physical retailers, not budding e-commerce'
'Tax physical retailers, not budding e-commerce'

Express Tribune

time11-06-2025

  • Business
  • Express Tribune

'Tax physical retailers, not budding e-commerce'

Listen to article Tech experts have pleaded for the withdrawal of taxes on the IT sector, digital services, and e-commerce to maintain momentum in digital transformation and economic documentation. They urged the government to support sectors that bring in foreign exchange and investment, generate employment, and contribute tax revenue, rather than restricting growth through discouraging tax measures. However, they praised the government for allocating funds for IT infrastructure development and human resource training. Pakistan Freelancers Association (PAFLA) Chairman and Executive Member of Digital Nation Pakistan, Ibrahim Amin, highlighted the importance of policy continuity. He suggested that the government extend the 0.25% Final Tax Regime for freelancers and IT exporters until 2035 to boost confidence, encourage compliance, and enhance remittances. He said the proposed 5% tax on social media advertising could indirectly affect the income of IT companies and freelancers, which may negatively impact IT foreign exchange inflows. "As per estimates, IT exports will surge to over $3.5-$4 billion, and remittances from freelancers will increase to more than $500 million by the end of the current financial year. If we want to sustain this growth, the government, along with stakeholders, should support these sectors with tax exemptions and incentives," he said. The services sector has shown steady growth in IT and e-commerce. In May 2025 alone, 718 new companies were registered in these sectors, according to data released by the Securities and Exchange Commission of Pakistan (SECP). Saad Shah, CEO of Ucaaz—a retail chain and e-commerce store—said the introduction of new taxes on e-commerce customers and vendors could slow down the sector's growth and its contribution to the broader economy, including digitisation and documentation. He noted that e-commerce still holds an insignificant share of the overall retail market, but its rapid expansion is attracting both local and foreign investment. However, the new taxes will shake the confidence of major stakeholders in Pakistan's e-commerce ecosystem. He pointed out that a significant segment of e-commerce contributes tax revenues, unlike the wider retail sector comprising shopping centres and wholesale markets. He added that instead of broadening the tax base, the government is overburdening existing taxpayers. The government has introduced the Digital Presence Proceeds Tax Act, 2025, in the finance bill. It targets entities with significant digital sales in Pakistan conducted through foreign-registered companies. Under this act, a 5% tax will be levied on the invoiced amount for goods and services. Additionally, the withholding tax rate on online and e-commerce transactions has increased from 1% to 2%, while an 18% GST has been imposed on goods purchased via local e-commerce vendors. Mehwish Salman Ali, a tech expert and member of the P@SHA committee, urged the government to strengthen the IT and digital business ecosystem through favourable policies, including tax exemptions and incentives. She warned that if government policies discourage investors and business owners, job creation would be affected, and ultimately the fruits of training new talent would not be reaped at an optimal level. She praised the allocation of Rs4.3 billion for the capacity building and skill development of 161,500 students, including 56,000 in IT-related fields. The IT industry is facing a serious shortage of human resources, and investing in youth to equip them with emerging skills is crucial, she added.

Experts warn against taxing freelancers, content creators
Experts warn against taxing freelancers, content creators

Express Tribune

time09-06-2025

  • Business
  • Express Tribune

Experts warn against taxing freelancers, content creators

Pakistan's freelance community has voiced strong opposition to proposed taxation measures in the upcoming federal budget targeting freelancers and content creators—including YouTubers, vloggers, and TikTokers—urging the government to prioritise foreign exchange inflows and economic inclusion instead. Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin said the government must avoid creating an impression that a large number of content creators will be brought under the tax net, as this could discourage struggling freelancers and budding digital creators. However, he suggested that the Federal Board of Revenue (FBR) could consider taxing a select group of high-earning entertainment content creators with substantial followings and revenues. Amin urged the government to categorise content creators carefully, exempting those who provide educational content and skills training to millions of subscribers in Pakistan and abroad from any new tax burden. He pointed out that both the public and private sectors have invested heavily in developing freelancers and digital creators, who have used these skills to support their families and attract much-needed foreign exchange into the country. Despite challenges such as frequent internet disruptions and electricity outages, freelancers' income surged to $400 million during the nine months of FY25, according to the latest Pakistan Economic Survey. Amin pointed out that most freelancers already pay taxes on every transaction and also bear deductions charged by freelancing platforms and payment gateways for transaction services. Estimates suggest there are around 2.37 million freelancers in Pakistan, making it the fifth-largest freelance workforce globally. "If we double the size of this community, annual foreign exchange inflows could exceed the $1 billion mark," said the PAFLA chief. Hisham Sarwar, a social media influencer and a well-known digital skills and freelancing trainer, said the government must support the freelancing sector's efforts to bring foreign exchange into Pakistan rather than introduce measures that may create fear and discourage digital workers. Citing Bangladesh as an example, Sarwar noted that tax holidays and cashback incentives for its IT sector and freelancers have driven rapid growth. Pakistan, he argued, should strengthen its high-potential IT sector similarly to boost exports to $10 billion per annum. Sarwar described Pakistan's freelancing market as limited but fast-growing, thanks to the talent and creativity of its youth. The rising adoption of artificial intelligence (AI) tools, he said, would likely attract more skilled individuals to the IT industry, potentially revolutionising the services and product sectors and delivering greater foreign exchange earnings than the proposed tax revenues. He warned the government against imposing new taxes inspired by the lifestyles of a small fraction—less than 1%—of luxury-living vloggers. Such measures, he said, would harm the entire industry. Pakistan Software Houses Association (P@SHA) Senior Vice Chairman Muhammad Umair Nizam said the IT sector has already proven its ability to attract valuable foreign exchange and foreign investment, aided by government incentives, tax holidays, and aggressive marketing drives. Nizam stressed that expanding IT exports would help reduce the country's current account deficit while empowering the youth to improve their living standards through employment in the IT and freelancing sectors. He also reiterated his call for an extension of the Final Tax Regime (FTR) for freelancers and IT exporters by up to 10 years and urged the government to allocate funds in the budget for capacity building of IT professionals and students. During July-March FY2025, IT and Information Technology Enabled Services (ITeS) achieved a trade surplus of $2.429 million, a 21.6% increase from $1.997 million last year, despite frequent internet disruptions during the fiscal year. The Pakistan Economic Survey 2024-25 highlighted other key indicators for the IT and telecommunications sector, including $2.825 million in IT exports, $2.429 million in trade surplus for IT and ITeS, $400 million in freelancers' remittances, Rs803 billion in telecom revenues, 147.2 million broadband subscribers, and a total of 199.9 million telecom subscribers.

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