Negotiate with your bank
Paying international invoices by wire transfer can be expensive and your bank will do their best to overcharge you with hidden fees. If you are doing a lot of transactions in foreign currencies, you can usually negotiate a better deal with your bank. If you are making payouts under £100 000 to Pakistan, chances are that your bank won't be interested in negotiating with you.Use a freelancer platform
Another option is to use a freelancer platform that support payout to a Pakistani bank account like Odesk or Elance. These platforms will take a cut and is not ideal if you already have a relationship with a freelancer. If you don't have an ongoing relationship or the project is small, the freelancer platforms are a good option.Use a specialised currency provider
For most businesses however, it makes more sense to use a specialised currency provider that gives you a fair deal regardless of the amount you are sending. With a specialised provider, you can send the money directly to the freelancers bank account in Pakistan, while avoiding the bank fees.You need to be careful about who you use however. Several providers, such as UKForex, will claim to give you free transfers if you send a certain amount. Be ware of the spread however. The spread is a hidden fee embedded in the exchange rate. The spread charged by UKForex is 0.8%, plus the £10 transfer fee.
TransferWise on the other hand doesn't charge you a hidden spread. Instead, they add a 0.5% fee on top of the mid market rate. That has the added benefit of making the cost of the trade clear to you and your accountant.
If you are making a monthly payment of £2000 with your bank, they would typically charge you £100. UKForex would be a bit cheaper, at 26. TransferWise would be your best option, at only £10.
List of providers sending money to Pakistan
Find out more about using TransferWise for your business here.
