Cross-border payouts into Pakistan

2 min. read

Understand the advantages of local currency settlements for staff, customers, vendors, and freelancers in Pakistan.

Opportunity in Pakistan’s growing digital economy

Pakistan is home to over 241 million people, with 79% lacking access to a traditional banking system. 8% of the entire world's unbanked population is from Pakistan.

Like many developing markets, the second-largest country in South Asia is lagging in digital infrastructure adoption. However, Pakistan has expanded its mobile infrastructure in the past decade. Currently, 80% of the adult population lives in areas with a mobile network, compared to only 15% in 2010.

The rising popularity of digital and alternative payment methods showcases Pakistan's burgeoning digital and mobile sectors. In May 2023, the State Bank of Pakistan (SBP) announced its expectation that a move to electronic transactions will boost Pakistan's GDP by 7% and create four million jobs. Projections show digital commerce will be worth USD$16.99 billion by 2027.

Why local settlements are recommended for emerging markets

Each region has unique local tax regulations, complex banking systems, and market volatility that create operational obstacles when converting currencies across borders. Pakistan’s access to both digital and traditional payment services are still on their way to catch up with many countries.

FX in Pakistan is cost-prohibitive

In 2023, Pakistan removed restrictions it imposed the previous year on import and capital control, implemented initially to curb foreign reserve outflows. This attempt had the unattended consequences of diverting remittance inflows from formal channels, further contributing to foreign currency shortages in the country. The shortage has caused less price transparency for consumers transacting online, as they can incur a premium of 10-15% when making international purchases with USD.

Settlement delays

Even in highly financially inclusive countries, settling cross-border payments can take over two days. In developing markets, this is even more apparent with a less modern banking system and market volatility affecting the speed and friction of the disbursement process.

For success in Pakistan, global companies must use local disbursement methods such as bank transfers and eWallets. dLocal's Payouts allow instant, more cost-effective cross-border settlements in Pakistan and beyond.

Simplify cross-border payments into Pakistan

Tailored to Pakistan's socio-economic landscape, dLocal’s localized payouts offer instant settlement methods like bank transfers and eWallets, and secure and cost-effective transactions for the sender and receiver.

A local disbursement solution is ideal for global companies across verticals with operations in Pakistan. Including:

  • Payroll
  • Money remittance,
  • B2B payments
  • Manufacturing
  • Ride-hailing
  • Delivery services
  • Gig-economy
  • SaaS

Skip the payout stress and streamline your settlement process. Disburse funds in the currency of your choice, while dLocal handles the conversion to PKR with best-in-class FX for payments to partners, vendors, employees, and freelancers in Pakistan.

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