The gig economy is creating economic opportunities and earning potential across Pakistan. While the logistics industry has been at the forefront of this transformation, other sectors are also beginning to embrace the freelancer model — particularly in the blue-collar segment.

It has created opportunities for people from all walks of life to earn a living, regardless of their education or background.

The gig industry (or the independent operator model referred to as “IO”) has been driven by several factors, including the increasing adoption of mobile internet, the accessibility of affordable smartphones, and the growing popularity of e-commerce platforms. These trends have created new possibilities for transport, logistics, and other businesses to connect with customers and workers more efficiently and effectively.

The IO model has transformed how people work, offering a range of benefits that traditional employment cannot match. One of the primary advantages of gig work is flexibility. Gig workers are free to set their schedules, choose their clients, and work from anywhere.

This flexibility allows them to balance work and personal life better and can be particularly appealing to people with family or other specific commitments. Moreover, the framework also provides the perfect opportunity to earn extra income, allowing freelancers to pursue their passions or hobbies while supplementing their earnings.

Many tech firms offer training and development programmes for their riders, which can help them progress to more senior roles within the company

In recent years the gig economy has gained traction in Pakistan, given the wide array of firms operating in the industry that leverage such frameworks, providing opportunities for countless individuals to work on their own terms and earn sustainable livelihoods.

Despite its fair share of challenges, the gig economy has been embraced by many Pakistanis as a way to supplement their income or even as a full-time profession. Understanding the gig economy and its impact on the Pakistani workforce is crucial for both individuals and policymakers in the country.

Delivery riders are at the forefront of the gig economy in Pakistan. They come from diverse backgrounds and are drawn to the gig economy for its key benefits — including offering an opportunity to gain valuable work experience and develop new skills.

While the majority of the workers continue to operate on a part-time basis, a fair few are previously unemployed and do not have access to full-time employment opportunities in the country. Therefore, the gig platform provides them with an opportunity to not only earn while they are looking to upskill but also diversify their skill set in the process.

Gig work also provides opportunities for career advancement. Many tech firms, like Foodpanda, Careem and Cheetay, offer training and development programmes for their riders, which can help them progress to more senior roles within the company. These programmes also provide riders with opportunities to learn new skills and move into other areas of the business, such as marketing, operations, or human resources.

The gig economy has been a lifeline for many young people starting their careers in Pakistan. With the high youth unemployment rate in the country, the sector has created new avenues for young people to enter the workforce and build valuable skills. Moreover, the freelancer model has been instrumental in empowering women and enabling them to participate more effectively in the workforce.

In Pakistan, where cultural norms might restrict women’s mobility and access to formal employment, the gig economy provides them with an opportunity to earn an income and support their families. Women make up a significant portion of the delivery riders or even home chefs in the country, and many have reported that the gig economy has given them a sense of empowerment and financial independence.

The gig economy has also played a crucial role in driving entrepreneurship in Pakistan. With the low barriers to entry and the ease of setting up an online business, many young entrepreneurs have started their own ventures in the gig economy or other ancillary businesses that support the freelancer framework. The freshly emerged industry has enabled these entrepreneurs to leverage technology and innovation to create new markets and provide value to customers.

Governments, employers, and workers must work together to ensure that the gig economy not only provides ample opportunity for workers to integrate into the sector in a sustainable manner but also supports a fair and equitable work environment for everyone involved. Gig work has the potential to become a significant contributor to economic growth and prosperity in Pakistan for years to come and must be recognised and supported with this mindset.

The gig economy has undoubtedly been a game-changer for economic opportunity generation in Pakistan. It has provided opportunities for people from all walks of life to earn a living on their own terms, empowered women, and driven entrepreneurship.

However, it is critical to ensure that gig workers are protected and their rights are safeguarded. With the right regulatory framework, the gig economy has the potential to continue to contribute to economic growth and create more opportunities for ambitious men and women across the country. n

The writer is the Director Policy, Communications & Legal, Foodpanda

Published in Dawn, The Business and Finance Weekly, July 24th, 2023