The State Bank of Pakistan (SBP) has allowed freelancers to receive up to $5,000 in payments per month as the central bank aims to increase the annual remittances by $1.2 billion.
The cap has been increased from $1,500 to $5,000 for freelancers offering their services to international clients and this has been done in a bid to encourage more skilled individuals to take up freelance jobs.
Forex Association of Pakistan (FAP) President, Malik Bostan told a news website that around 300,000 freelancers receive $1.2 billion per year on average and it can be doubled to $2.5 billion in a short time.
Earlier, a number of freelancers opted to spend their funds abroad owing to the complex method of receiving payments, which hurt Pakistan badly in terms of foreign exchange.
The upper limit for pensions has also been set to $5,000 which was previously set to $2,500 in 2018 under workers’ remittances. The notification, which was issued on Monday, will help attract more foreign remittances especially after a drop of 2% from $7.61 billion to $7.47 billion in the first four months of the current fiscal year.
The drop, however, is due to a global economic slowdown in the aftermath of the China-US trade war. The government eyes foreign workers remittances of $24 billion in FY2020, up from $21.8 billion in FY2019, however, SBP has projected it to be between $22.5-23.5 billion.