In order to broaden the scope of business-to-customer transactions through home remittance channels, the depository financial institution of Pakistan (SBP) has enhanced payment limits against freelance services in computer and knowledge systems and other freelance services from $5,000 per individual per month to $25,000 per individual per month.
The enhancement in limit will facilitate freelancers to route more funds through a more economical and efficient channel of home remittances and help in receiving exchange flows through formal banking channels within the country.
This would also enable freelancers to expand their business/ operations and have interaction with new freelancers to hitch the workforce. this is often expected to make employment opportunities and increase the exchange earnings of the country.
While Export of Services has been growing in double digits, (10.5% rise registered in January 2020), this enhancement of limits for freelancers shall further accelerate growth in Export of Services within the months ahead.
It is pertinent to say that folks in the IT industry believe that exports’ values of IT and computer services don’t reflect truly from the central bank’s data because the income of freelancers from foreign clients comes as remittances as received from overseas Pakistanis. Many freelancers of IT services manage their income against the services of foreign clients on the way to varied countries through PayPal accounts of their friends or relatives to their bank accounts in Pakistan.
It is hoped that the measure will encourage freelancers to more projects from foreign clients and therefore the remittances inflows also will reflect the gradual rise in days to return.