Pakistani freelancers earn record $950m in 10 months, outpace regional peers

Pakistan’s freelance workforce generated more than $950 million in foreign exchange earnings during the first 10 months of fiscal year 2025-26, marking a 49 per cent increase compared to the same period a year earlier, according to figures released by the State Bank of Pakistan (SBP).

The strong growth highlights the expanding role of freelancers in the country’s digital economy, with industry representatives attributing the surge to greater participation on global online marketplaces and digital service platforms.

Speaking to Dawn, Pakistan Freelancers Association (PAFLA) President and Chief Executive Officer Dr Imran Batada said local freelancers had delivered impressive results despite economic uncertainties and increasing competition in international markets. He noted that Pakistani professionals were competing successfully with freelancers from several regional economies, including India, China and the United Arab Emirates.

According to Dr Batada, the rise in earnings has been fuelled by the growing presence of Pakistani freelancers on platforms such as Upwork, Fiverr and various social media-based business channels. He said awareness of freelancing as a career option has increased significantly in recent years, encouraging more people to acquire marketable skills through online courses, private training institutes, government-backed programmes and initiatives led by non-governmental organisations.

Pakistan’s freelance community is estimated to comprise around three million individuals, making it one of the largest pools of digital workers in the region. Dr Batada emphasised the need for coordinated efforts between the government, financial institutions and industry stakeholders to support the sector’s continued growth and ensure its long-term sustainability.

He also encouraged students and young professionals to focus on developing advanced technological expertise, particularly in artificial intelligence, alongside communication and other soft skills that are increasingly valued in global markets.

To further strengthen the sector, PAFLA plans to organise a series of online and in-person training sessions across the country. These programmes will focus on emerging trends in freelancing, business development, client management and payment systems, with the aim of helping Pakistani freelancers expand their reach and increase their earnings in international markets.

The latest figures underscore the growing contribution of freelance services to Pakistan’s export earnings and the broader digital economy.

Freelancers drove Pakistan’s digital export growth last year

Last year, freelancers contributed $400 million in foreign inflows to Pakistan during the first nine months of the 2024-25 fiscal year, highlighting their growing but often under-recognised role in the country’s expanding digital economy, Finance Minister Muhammad Aurangzeb had said while unveiling the Economic Survey 2024-25.

The figure, which was expected to reach around $533 million (approximately Rs150 billion) by the end of the fiscal year, is part of broader IT export earnings but reflects how freelance work has quietly become a significant source of foreign exchange for Pakistan.

Officials say the rise reflects both increased global demand for Pakistani digital services and improved access to international freelancing platforms. It also signals a gradual shift in the country’s export base towards knowledge-based services, supported by a growing pool of skilled digital workers.

To encourage further growth, the government has introduced policy reforms allowing IT exporters, including freelancers, to retain 100% of their foreign earnings and invest abroad without prior approval from the State Bank of Pakistan. While detailed freelancer-specific data remains limited, policymakers view the measure as part of a broader effort to expand the digital services sector and improve export competitiveness.

Industry stakeholders have urged additional reforms to sustain momentum. Amin had also recommended extending the current 0.25% final tax regime for freelancers until 2035 to enhance confidence and compliance. He also proposed tax incentives for freelancers in underdeveloped regions such as Gilgit-Baltistan, South Punjab and Thar to promote digital inclusion.

Other suggestions include simplifying withholding tax structures, reducing rates for high-earning freelancers, and introducing a dedicated online tax portal to streamline compliance.