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IT is unfortunate that poverty is rising in Pakistan, with a huge chunk of the population unable to make ends meet. The media recently reported the World Bank president’s comments that “Pakistan must create up to 30 million jobs over the next decade to turn its youth bulge into an economic dividend or risk instability and outward migration”.
Creating millions of jobs is a difficult task, especially when crucial economic sectors are showing alarming signs of decline. For instance, the contribution of the large-scale manufacturing sector to GDP has fallen significantly in recent years.
Amidst all the challenges, it is encouraging to observe that Pakistan’s services exports sector is showing growth, rising 19 per cent in the first eight months of the current financial year. Freelancers in Pakistan are the engine behind the IT sector’s growing imports. According to figures released by the government, freelancers earned a record $557m in foreign exchange in the first half of the current fiscal year. This is a significant increase in foreign exchange earnings compared to the same period last year, clearly showing that freelancers are emerging as a beacon of hope and that incentivising freelancing can be a game-changer for poverty alleviation efforts in Pakistan.
Pakistan is among the world’s top five freelancing countries with more than 2.3m active freelancers, who are not only earning for themselves but also building global trust in the country’s youth. Experts say that if structural support is provided, national earnings in this field can go beyond $1 billion annually. Clearly, individual brilliance has played a key role in the development of Pakistan’s freelancing sector.
Credit is due solely to the initiatives of the freelancers.
The success of this sector at home and abroad shows that the world is moving away from simply brick-and-mortar development. However, although it has shown great progress, it is still in its infancy in this country. It is the government’s responsibility to make every effort not only to facilitate freelancing for citizens here but also to develop plans to attract global digital nomads.
The recent 5G spectrum auction by the government is a step in the right direction and could offer preferential pricing for freelancers. This move will enhance Pakistan’s digital economy and create new opportunities for freelancers.
Credit is due solely to the initiatives of the freelancers, who have had hardly any support from any quarter. This sector can play a key role in ensuring the consistent progress of Pakistan’s economy. For the sector’s continued growth, the government must understand the importance of freelancers and start-ups and provide multiple incentives. The government should develop more incubation centres across the country. These incubation centres can help freelancers enhance their skills and guide them in scaling up their work. The government should also recognise high-earning freelancers, providing them with workspace and incentives to train new freelancers. This model can trigger a chain reaction that brings more people into the workforce, benefiting both individuals and the country as a whole.
Bangladesh is following a similar model. It recognises top-performing freelancers at the national level, boosting the sector’s visibility and encouraging more people to adopt freelancing as a career. In fact, through the government’s initiatives, freelancing in Bangladesh has become an important part of the national development agenda. China is also supporting its freelancers and start-up ecosystem. It is offering free living spaces and converting idle data centres into incubation centres for one-person companies. The latter phenomenon started in Suzhou and is rapidly spreading to other Chinese cities.
The government should learn from successful global examples and work towards formalising this sector. As a starting point, freelancers should be given a 10-year tax break. This will motivate them to work hard to develop this sector. PayPal should be brought to Pakistan. The availability of this online payment platform will increase international trust in Pakistan’s content creators, generating new opportunities for them to work with clients who prefer PayPal for transactions. This will increase the flow of money into the country. Besides, it will help the government track digital earnings.
The freelancing sector is becoming the backbone of Pakistan’s economic growth. Those at the helm should understand the importance of this sector and give it their wholehearted support so that it can continue to play a positive role towards national prosperity.
The writer is a freelance contributor.
Published in Dawn, May 5th, 2026
