Freelancers power Pakistan’s external account revival with record inflows 

ISLAMABAD: Pakistan’s growing freelance economy has emerged as a key driver of the country’s external account turnaround, contributing to a $1.9 billion current account surplus in the first 10 months of FY2024-25, according to the Economic Survey released Monday. 

Freelancers brought in $400 million during the period, helping push total IT export earnings to $3.1 billion. This surge shows the increasing role of digital services in bolstering foreign exchange earnings, as Pakistan works to diversify beyond traditional exports like textiles and rice. 

The surplus marks a sharp shift from a $1.3 billion deficit in the same period last year, signalling improved external sector stability. The broader recovery was underpinned by record remittance inflows of $31.2 billion, up nearly 31 per cent year-on-year.  

March alone saw a historic monthly high of $4.1 billion in remittances, helping lift foreign exchange reserves to $16.6 billion by the end of May, with the State Bank holding $11.51 billion. 

Freelancers, many working in tech, design, and content development, are increasingly seen as central to Pakistan’s economic strategy. The URAAN Pakistan reform agenda places digital skills and IT exports at the core of efforts to sustain growth and reduce reliance on external borrowing. 

Still, challenges remain. The goods trade deficit widened to $21.3 billion as imports surged 11.8 per cent, outpacing a 6.8 per cent rise in exports to $26.9 billion. The services account deficit stood at $2.5 billion, while the primary income account gap widened to $7.1 billion due to higher interest and dividend payments. 

Foreign direct investment declined 2.7 per cent to $1.8 billion, and net financial outflows reached $1.6 billion as debt repayments intensified. 

Despite these pressures, the rupee held firm at Rs278.72 per US dollar, helped by improved external inflows. Finance Minister Muhammad Aurangzeb also reported a primary fiscal surplus of 3 per cent of GDP, double that of the same period last year. 

Pakistan’s bet on freelancers and digital exports is paying off but sustaining momentum will require continued support for the tech sector and deeper structural reforms. 

Read next: Budget 2025-26: What the common man can expect?