Only 38,000 Out of 2.3 Million Freelancers Have Bank Accounts

Out of Pakistan’s 2.3 million freelancers, only 38,000 hold bank accounts, highlighting a significant gap in financial inclusion within the freelance community. This data was shared during a recent meeting of the Prime Minister’s Committee on IT Export Remittances at the Finance Division, aimed at enhancing the flow of IT export remittances critical to Pakistan’s economic growth and digital economy.

Focus on Boosting IT Export Remittances

Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired the meeting, emphasizing the importance of IT exports for foreign exchange earnings. Despite freelancers contributing 15% of IT exports, a large number remain outside the formal banking system. While 500 new accounts are being opened weekly according to the State Bank of Pakistan (SBP), retaining these account holders and encouraging others to adopt banking services remains a challenge.

The SBP Governor outlined measures to address these issues, including:

• Streamlining account opening procedures.
• Running awareness campaigns about the benefits of banking.
• Enhancing complaint resolution mechanisms.
• Prioritizing the IT sector in banking frameworks.

Formation of a Dedicated Working Group

To address these challenges effectively, a working group has been established with representatives from key organizations, including the Federal Board of Revenue (FBR), SBP, IT Ministry, P@SHA, and the Freelancers Association. This group will work on:

• Harmonizing freelancer-related data.
• Identifying critical issues in the banking system.
• Simplifying processes for freelancers.
• Enhancing transparency in IT export remittance flows.
• Ensuring sustained progress through collaborative policymaking.

IT Sector: A Cornerstone for Economic Growth

The Finance Minister underscored the IT sector’s role as a rapidly expanding industry and a key driver of foreign exchange. He emphasized the need for consistent policies, targeted reforms, and collaboration among stakeholders to unlock the sector’s full potential. “IT exports have immense potential to contribute significantly to our economy through export remittances,” he stated.

Addressing Key Challenges and Opportunities

The meeting highlighted the need to simplify capital movement for IT exports and discussed strategies to tackle unremitted revenues. Despite the sector’s steady growth, retaining earnings within Pakistan remains a priority.

Government’s Commitment to IT Growth

Reaffirming its commitment to the IT sector, the government aims to establish Pakistan as a competitive player in the global IT landscape. Collaboration among ministries, financial institutions, and private sector stakeholders is vital to overcoming challenges and promoting IT exports.

Meeting Participants

The meeting was attended by senior officials, including the Minister of State for IT & Telecom, the Governor of SBP, the Chairman of FBR, the CEO of Pakistan Software Export Board (PSEB), and other high-ranking representatives from the Finance Division and IT sector.