Freelancing in Pakistan has experienced one of the largest surges in recent years. Pakistani freelancers earned $557 million in foreign exchange during the first half of fiscal year 2025-26. Pakistan has 2.3 million active freelancers, ranking it among the top five freelancing countries in the world. The government has introduced several policies to support young freelancers, and the chief of the Pakistan Freelancers Association, Ibrahim Amin, states that this continual progress could lead to generating up to $3 billion in exports in a few years.

Freelancing provides citizens with opportunities to work remotely and earn dollar-denominated income, benefiting some unemployed young people. The rise in the gig economy emerged after the 2008 financial crisis, as people took on part-time jobs to meet basic needs. The online hiring system is less expensive and allows a greater range of applicants to apply for jobs, giving women and unemployed youth more opportunities while they stay at home.

Government Efforts and Poverty Reduction

The government has provided freelancers with a tax incentive to route payments through the country’s banking system. Freelancers registered with the Pakistan Software Export Board (PSEB) pay only a 0.25% tax on foreign gains. The government has focused on improving freelancing prospects due to the high 11.4% unemployment rate among youth by creating the 2023 Freelancing Policy. The PSEB has also invested in digital skills. Reports indicate that most freelancers earn around $200 to $800 a month. The Software Export Board teaches new skills ranging from creative design to SEO.

Freelancing offers an alternative source of income outside sectors such as agriculture, which can be vulnerable to weather and other natural conditions. It provides a more stable opportunity by teaching new skills so people can escape poverty. Pakistan Tech Destination has 600,000 IT professionals registered, and PNY training teaches skills like jewelry making to help locals earn their keep. Global markets also connect rural populations, increasing the number of laborers earning higher than the minimum wage.

A New Opportunity for Women

Researchers reported that women’s workforce participation was 24% in 2014. After COVID-19, a shift toward IT marketing and online work gained popularity. Freelancing provides new opportunities for women in Pakistan, where it is culturally challenging for them to work in offices. Freelancing allows for flexible shifts, enabling women to balance house chores and family responsibilities.

Platforms like Fiverr, Upwork and PeoplePerHour have emerged, offering courses with important skills for women to improve their earnings. Some research estimates that women make up 15-25% of Pakistan’s freelancers. Freelancing offers women greater flexibility and access to income, although participation and earnings vary. It provides household income security and gradually enhances economic security for the country.

Future Prospects

Freelancing could contribute to Pakistan’s economic opportunities and help broaden access to income beyond major urban job markets. It might lead to a reduction in poverty with an increase in training centers for local people and tax incentives for freelancers to acquire earnings through formal banking systems. The government could recognize the advantages of this developing sector and aim to provide opportunities to address the lack of jobs in Pakistan.

– Eshal Fatima

Eshal is based in Lahore, Punjab, Pakistan and focuses on Business and New Markets, Good News, Technology and Solutions for The Borgen Project.

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