State Bank raises freelance payment limit to $25,000

KARACHI: The State Bank of Pakistan on Wednesday increased the payments limit for freelance services in information and communication technology by five times.

In a circular issued on Wednesday, the bank said the decision has been made to broaden the scope of business-to-customer transactions through home remittance channel.

As a result, the payment limit against freelance services in the said area has been enhanced to $25,000 per individual a month from $5,000 previously.

This increase in limit will facilitate freelancers to route greater value of funds through a more economical and efficient channel of home remittances and help in receiving foreign exchange flows through formal banking, said the SBP.According to the SBP, this would also enable freelancers to expand their business or operations and engage new individuals to join the workforce.

“This is expected to create employment opportunities and increase foreign exchange earnings of the country,” it added.

While export of services has been growing in double digits (10.5 per cent in January), this enhancement of limits for freelancers is expected to further accelerate that.