Wednesday, February 21, 2024
HomeBusinessSBP to Increase Payment Limit for Freelancers from $5,000 to $25,000

SBP to Increase Payment Limit for Freelancers from $5,000 to $25,000

As per the statement released by the State Bank of Pakistan (SBP), there would be a substantial increase in the payment limits of freelancers working in IT and other sectors.

The five-fold increase in payment limits has been announced to promote Business to Customer (B2C) and Customer to Business (C2B) transactions through home remittance systems.

Previously, the payment limit was $5,000, or Rs. 772, 125 per month individually which has now extended to $25,000, or Rs. 3.86 million per month.

“The new limit will help freelancers to route greater value of funds through a more economical and efficient channel of home remittance. It will also help in receiving foreign exchange flows through the formal banking channels in Pakistan,” said the SBP.

The initiative will help to promote the growth of services as it witnessed inflation of 10.5% in January 2020. SBP has also issued Circular Letter No. 03 of 2020 which clarifies the transactions limit to authorized dealers.

“Banks shall obtain details of the underlying services that are provided against receipt of funds in Pakistan. These details, to be obtained from the customers, shall be inclusive of but not limited to the portal’s name (if any) through which services acquired, the counterparty is acquiring the services, nature of the services, etc.,” SBP added.

Speaking at the event organized by the National Incubation Startups, Prime Minister Imran Khan expressed his opinions on the importance of startups of the country’s economy.

“We have to free the youth potential and I never had a doubt that Pakistan would lead the entire region, the way it was progressing in the 1960s,” he said. “The encouragement of startup culture in youth was the vision of Naya Pakistan,” Prime Minister added.



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