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Shocking Stats: Only 38,000 Out of 23 Lac Freelancers Have Bank Accounts

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Only 38,000 Out of 23 Lac Freelancers Have Bank Accounts

Pakistan is home to over 2.3 million freelancers, yet a startlingly low number—just 38,000—have active bank accounts. This gap was highlighted during a meeting of the Prime Minister’s Committee on IT Export Remittances at the Finance Division, aimed at addressing hurdles and boosting IT export remittances vital for economic growth.

Meeting Highlights

Chairperson and Participants

The meeting was held by Federal Minister for Finance and Revenue Muhammad Aurangzeb and attended by stakeholders, including:

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  • Minister of State for IT & Telecom Ms Shaza Fatima Khawaja
  • Advisor to the Finance Minister Khurram Shehzad
  • Chairman FBR
  • Governor SBP
  • CEO of Pakistan Software Export Board (PSEB)
  • Senior officials from the Finance Division

Freelancers’ Contribution and Banking Gaps

Freelancers contribute 15% to Pakistan’s IT exports. Even though they play a big part, only 38,000 freelancers have bank accounts. The emphasis is still on keeping these account holders and luring more independent contractors to join the banking system, even though the State Bank of Pakistan (SBP) claims that 500 new accounts are opened every week.

Read More: How Freelancers get International Payments in Pakistan?

Steps to Address the Banking Gap

The SBP governor gave the committee an update on the following actions:

  • Simple Account Opening Procedures: To make it easier for freelancers to open accounts.
  • Awareness Campaigns: Intended to inform freelancers about the advantages of utilizing official financial channels.
  • Improved Complaint Mechanisms: Ensuring swift resolution of banking issues.
  • IT Sector Prioritization: Highlighting the IT industry’s role in banking frameworks.

Formation of a Working Group

To foster data-driven policymaking, a dedicated working group was formed. It includes representatives from:

  • Federal Board of Revenue (FBR)
  • State Bank of Pakistan (SBP)
  • IT Ministry
  • Pakistan Software Houses Association (P@SHA)
  • Freelancers Association

The group will focus on:

  1. Harmonizing data across stakeholders.
  2. Simplifying processes for freelancers.
  3. Enhancing transparency in banking systems.
  4. Ensuring progress continuity.

Finance Minister’s Vision for the IT Sector

Finance Minister Muhammad Aurangzeb emphasized the IT sector’s potential to drive economic growth, stating:

”IT industry export remittances hold significant potential as a major source of foreign revenue. To realize its full potential, a cooperative strategy, unified policies, and focused changes are necessary”.

Challenges and Opportunities

Even while IT exports are growing consistently, a sizable amount of money is still not declared. The committee identified the need to improve capital flow processes to ensure more IT earnings are repatriated.

Government’s Commitment to IT Growth

The government reiterated its determination to establish Pakistan as a major player in the global IT market. It was suggested that stakeholders cooperate to:

  • Overcome existing challenges.
  • Promote IT exports.
  • Strengthen the digital economy.

This meeting underscores the government’s focus on empowering freelancers and the IT sector to boost economic growth through strategic reforms and collaborative efforts.

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