Can we use Paypal legally in Pakistan or is there some other way to do e-banking?
I don’t think Paypal is legal for Pakistan, there are certain illegal ways to open an account though, but those accounts can be frozen at any time. You can use other websites such as Skrill (formerly Moneybookers). Skrill used to be a good option for Pakistan but recently they disallowed withdrawals to bank accounts in USD. Which means now your money gets converted to EUR and then to PKR hence more currency conversion fees.
There is also a debit card service: Payoneer. You can use this card to get payments from anywhere in the world (the person has to load money to your debit card through their debit/credit card).
A recent innovation is Bitcoin, which is a new form of currency. You might want to search more on this, because this is a little hard to understand in the beginning. But there are many many benefits of this. For one, the transfer is INSTANT. Bitcoin is not regulated by any government, so what happens is, many computers on the internet “confirm” transactions. So, even though the transfer is instant, at the moment it takes an average of 10 minutes to get the first “confirmation”. So basically, you can receive money in 10 minutes. What about the transfer fees? At current prices, its just Rs. 3 to Rs. 10 for any amount of money that you’re transferring, even millions of rupees. Once you get the bitcoins, you need to find someone willing to buy those bitcoins and give you cash in return. You can easily find people at LocalBitcoins.com