Entry of PayPal in Pakistan at a time when freelance market is over-competitive
Freelance market is over-competitive; PayPal is too late but can benefits goods' buyers and sellers.
(Web Desk) – Freelancing is a thriving industry in Pakistan; millions of people are directly and indirectly attached with it. The prime benefit that it provides is to freelancers who can easily earn dollars by selling their services to buyers with varied needs. Pakistani youth has gained access to multiple freelancing sites including Freelancer, Upwork, Fiverr, etc. and are adding a huge chunk of dollar in country’s exports.
Pakistan is among the top five countries in the world where freelancing is thriving and inspiriting youth with entrepreneurship skills. It is generating around a billion dollar annually from freelancing. Pakistan is ranked as the 4th most popular country for freelancing in the Online Labor Index published in 2017 by Oxford Internet Institute (OII) and is consistently ranked among the top destinations for Internet Communications and Technology (ICT) outsourcing.
Entry into freelance platforms and getting clients is an uphill task now; fascinatingly, Indian and Bangladeshi freelancers – who had PayPal option from the very earliest – have snatched the same share from Pakistani freelancers.
In reality, Pakistan has much more potential than what it is being reflected at the freelancing world. Unavailability of online financial services provider like PayPal (The US-based financial services company), a payment method that is used by almost every freelancing site is what is barring freelancing market to reach its utter potential.
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Owing to the absence of the most trusted, well-regarded and secured online financial platform, freelancing industry of Pakistan could not reach to destination it should have been. Freelancers faced numerous issues gaining financial rewards for services provided being one of them. In this regard, Indian and even Bengali freelancers received an edge and snatched the market share of Pakistani freelancers.
PayPal still a necessity, more for online buyers and sellers than freelancers
Though it is late and freelancing market is already over-competitive, investors, especially online buyers and sellers, still need it to help them ease their transactions. Successive governments in Pakistan failed in their attempt to force PayPal to launch its services in a market filled with potential. Finance Minister Asad Umar seems to be much ambitious in having it here and facilitating the freelancers and other E-commerce stakeholders.
The minister’s curiosity of PayPal ignoring such a big market is worth noticing and praising in freelancing circles, but the real target will be to have it here in Pakistan.
At this juncture, PayPal’s availability will aid expanding E-commerce activities. Giving an online interview to PTI social media team, he said, “Either Paypal or any other alternate virtual payment system but in the next four months or so we should have an internationally acceptable payment gateway for the surging number of startups in the country.” So if there is no PayPal, there will be any other similar service.
In reality, PayPal’s terms and conditions are quite harsh, and Pakistan’s murky relations with FATF portray a gloomy picture. To what extent government becomes efficacious in achieving this goal, only time will tell.
Here is his complete interview and his views on prevailing economic trends in Pakistan.
Through the availability of PayPal, international transactions will be conducted with ease: a Pakistani having his PayPal account will be able to buy and sell goods on platforms where it is the only way of paying or receiving money.
IT expert and Punjab IT Board Chairman Umar Saif also believes PayPal existence in Pakistan can radically boost its IT industry.
— Umar Saif (@umarsaif) October 16, 2018
PayPal’s arrival will indeed facilitate the government reaching its ambitious target of $10 billion in IT exports by 2025, freelancing services provided by Pakistani youth – writers and designers especially – will have a lot to do with it.
Committed Asad Umar and uncaring PayPal
Now that the federal government seems fully agreed to have PayPal into Pakistan to ease E-commerce activities – Asad Umar has even given task to IT minster to speed up the process – the reaction of PayPal’s management is yet to be observed. In reality its terms and conditions are quite harsh, and Pakistan’s murky relations with FATF portray a gloomy picture. To what extent government becomes efficacious in achieving this goal, only time will tell.
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PayPal’s unavailability has damaged Pakistani freelancers a lot and now it is not a potentially lucrative option for them as it used to be just some years ago. Entry into freelance platforms and getting clients is an uphill task now; fascinatingly, Indian and Bangladeshi freelancers – who had PayPal option from the very earliest – have snatched the same share from Pakistani freelancers. Let us be positive and hope that PayPal’s entry will benefit those who are primarily online buyers and sellers if not freelancers providing services on mentioned websites.
