It was heard that the government is making an effort to introduce Paypal and AliPay in Pakistan. Before it arrives, the Finance Minister Ishaq Dar has declared that Pakistan will open its own international electronic payment gateway system.
During presentation of budget 2017-18 Ishaq Dar said that a state-of-the-art e-gateway is being developed by State Bank of Pakistan. This project would cost around Rs200 million. The investment is done by State Bank of Pakistan. He said that through this system mobile banking would become easier.
Paypal is an internationally recognized online system for payments while Alipay is not that popular. Prime Minister of Pakistan is working with Alibaba Group Founder and Executive Chairman Jack Ma who is also the owner of Alipay to start its operations in Pakistan. Once Alipay starts working in the country, e-payments between China and Pakistan would become easier.
Read more: Alibaba group to start operating in Pakistan
As for Payapl government wants to bring it in Pakistan and digitalize the economy. They are convincing PayPal to start functioning in the nation.
Parvez Iftikhar an expert in information and communications technology said that the manual payment system would soon be replaced by e-gateway system.
The importance of telecommunication sector was emphasized by the finance minister. He said that for economic development telecommunication sector needs to grow. Therefore to facilitate this sector, taxes at rate of 11% and 16% were withdrawn while a uniform rate of 9% regulatory duty was imposed on telecom equipment in the upcoming year.
Moreover those software houses that are Startups would be released from paying income tax for initial three years. Moreover sale tax would be exempted from export of IT facilities from Islamabad and other federal areas.
Income tax on mobile calls was decreased to 12.5% from 14% and federal excise duty was decreased to 17% from 18.5%. Moreover the custom duty was decreased to Rs650 from Rs1,000.
The reason for providing relief to IT sector is to allow industrialist to invest in the sector more and digitalize the country.
Reducing tax in IT department and telecommunication sector would help Pakistan compete with developed nations and become a better economy.
Advantages to Pakistan by establishing electronic payment gateway system:
- Easier method of transaction especially for businesses
- Pave the path for a digital Pakistan
- Rapid transaction processing
- Better economy through e-payment system and providing opportunities in IT sector