Freelancing Landscape of Pakistan - PAFLA and ADB

Research Overview - January 2024
Pakistan’s Transformative Digital Future: Growth Strategy And Roadmap
www.pafla.org.pk
Contents Page
1. About PAFLA 03
2. Introduction & Scope of Work 04
3. Research Methodology 07
4. Research Limitations & Next Steps 08
5. Quantitative Insights – Key Trends 09

. Demographic Insights
. Freelancing Profile Insights
6. Qualitative Insights – Key Trends 24
7. Successful Freelancer Journeys 40
8. Key Initiatives by Government & Private Sector 44
9. Comparison of Pakistan with Regional Freelance Marketplaces. 49
10. Policy Reccomendations for Freelancer Support 53
Freelancing Landscape of Pakistan - Research Overview 2

About PAFLA
The Pakistan Freelancers Association (PAFLA) is a registered non-profit organization under the
SECP (Section 42 of the Companies Act, 2017), with license number 1633. PAFLA is committed
to advocating for the interests and rights of freelancers in Pakistan, providing a platform
for growth and recognition within the country’s economic landscape. The association
hosts Freelancing Awareness Sessions at universities nationwide, equipping individuals with
the skills needed to succeed in the digital economy and offers free membership to further
freelancers’ careers through advocacy, networking, and access to educational resources.
PAFLA’s initiatives extend beyond advocacy; they include significant collaborations

that address the diverse challenges faced by freelancers. For instance, a partnership
with Google distributes Career Certificates to prioritize youth, women, and rural
empowerment, enhancing the skills of the Pakistani workforce. Similarly, cooperation with
the Asian Development Bank (ADB) has facilitated research to understand the freelancing
landscape better, leading to targeted interventions for sustainable economic growth.
Additionally, PAFLA is dedicated to empowering women by collaborating with organizations

focused on helping them become self-sufficient freelancers. These initiatives provide housewives
and other women the skills, resources, and opportunities needed to thrive in the freelancing
marketplace. These efforts help create an environment that supports and champions the cause of
freelancers, thus fostering a more inclusive and economically empowered Pakistan.

01.
Introduction and
Scope of Work

$1.6 Bn
Freelance economy
expected to reach
by 2030
2.37 M
active freelancers
$269.8 M
in freelance remittances
in 2023

The freelance sector in Pakistan is a rapidly evolving Pakistan ranks among the top four nations globally
& significant segment of the economy, for providing freelance services, with 2.37 million
characterized by its resilience and burgeoning active freelancers, including around 550,000
potential, especially in the face of global challenges full-time professionals who completed a minimum
such as the coronavirus pandemic. Dominated by a of 10 projects and earned $1000. The freelance
youthful demographic, with over 60% of freelancers workforce in Pakistan is around 12.5% of the global
aged in their 20s and 30s, this sector benefits freelance workforce
from a strong digital infrastructure, highlighted
by 82.90 million internet users as of January 2022 Approximately 42.4 % of Pakistani freelancers
(Digital 2022: Pakistan) and a tele density of work in software development, making Pakistan a
85%, supported by over 189.740 million cellular notable contributor to the global software
subscribers as of September 2023 (PTA, 2023). development freelance market, as reported
by the World Bank. This specialization not only
In 2020, amidst the global economic downturns highlights Pakistan’s strength in IT but also emphasizes
and the coronavirus pandemic, Pakistani its significant market presence and impact on the
freelancers demonstrated remarkable resilience global stage. Despite the achievements, Pakistani
by earning $150 million (Pakistan Software Export freelancers face challenges, such as working on
Board, 2020), an achievement that underscores basic projects that are low paying compared to
the sector’s ability to thrive under challenging other countries. The hourly income rate is estimated
conditions. The State Bank of Pakistan’s report at $4/hr, below the global average of $28/hr as
for FY2021-22 indicated that the year 2022 saw a per the Global Gig Economy Index Report by
growth of 2.74% as the remittance inflows stood Payoneer.
at $397.328 million as compared to 396.243 million
in 2021. In fiscal year 2022, the freelance sector With the freelance economy in Pakistan expected
generated nearly $400 million in export to grow more than fourfold, reaching $1.6 billion by
remittances, accounting for 14.77% of Pakistan’s 2030 according to a research carried out by Ignite,
total ICT export remittances of $2.616 billion during the sector is not only expanding in terms of earnings
the same period (Ministry of IT & Telecommunication, but also in scale, offering diverse opportunities
2022). The freelance sector’s contribution to for economic development and individual
Pakistan’s economy is further highlighted by the empowerment. This rapid assessment aims to
Pakistan Economic Survey for FY2023, which explore the state of freelancing in Pakistan, including
reports that freelance professionals contributed its scope, economic significance, challenges,
approximately $269.8 million through remittances and opportunities, reflecting the latest data and
between July and March, with the IT sector trends in this dynamic sector. The research has
accounting for $156.9 million and the non-IT sector been completed with the collaboration of Asian
contributing $112.9 million. Development Bank (ADB) and Pakistan Freelancers
Association (PAFLA) and is an important
The freelance community in Pakistan, consisting component of ADB’s TA-10060: Pakistan’s
of approximately 2.37 million individuals in 2022 as Transformative Digital Future – Growth Strategy and
reported by the Ministry of IT & Telecommunication Roadmap.
(MoITT) and the Online Labor Index of the Oxford
Internet Institute, has seen consistent growth.

02.
Research
Methodology
This research consisted of a mixed-methods research process consisted of semi-structured and
approach, with a combination of qualitative and in-depth interviews of important stakeholders in the
quantitative work, as well as primary & secondary freelancing ecosystem. These interviews aimed to
research. With regards to the quantitative get a deeper understanding of various key trends.
aspect, a survey was designed and circulated Secondary data was also included as part of the
to freelancers registered on the portal of the research which included sources such as Online
Pakistan Freelancers Association (PAFLA). This Labor Index, Pakistan Economic Survey, Payoneer,
database is comprised of 50,000 + freelancers Tabadlab, and World Bank among others. This was
out of which 800 submitted responses. The data all assimilated to represent the final findings and
collected was then cleaned & analyzed to derive insights documented in the rest of this report.
\ relevant insights. The qualitative aspect of the

Research
03. Limitations and
Next Steps
The research was faced with a number of limitations. next steps in this regard would be to carry out a
The quantitative data gathering was completed data scraping exercise on freelancing platforms
via dissemination of a survey to a database of like Upwork and Fiverr via web scraping through
around 50,000 freelancers. Response rates from an API. These platforms are used by everyone who
this database were not as high as expected due starts their freelancing journey in Pakistan and
to the rapid nature of the assessment and lack would be an excellent resource for data gathering
of incentives given to respondents to fill out the and for generating specific numbers and insights.
survey. The time allocated for the data gathering While it is true that many freelancers also use other
process was limited, which resulted in a smaller platforms, a significant portion of the freelance
sample size than expected for analysis. As a community sets up profiles on these platforms.
result, this study is exploratory in nature and aims A large-scale survey can also be rolled out, but
to identify key trends and patterns with regards with some allocation given towards incentivizing
to various aspects of the freelancing landscape responses from stakeholders. These could include
of the country. It provides a baseline on which various options like lucky draws, small cash rewards,
further studies can be designed, which can aim provision of free mentorship services to name a
to generate very specific quantitative insights. The few. This will encourage higher response rates.

04.
Quantitative Insights
Key Trends

Demographic Insights
A number of demographic insights were generated Freelancers in the age bracket of 35-44 years also
from the survey results. Around 79% of the survey comprised 20% of the respondents. The occurrence
respondents were male while females comprised of older age groups was significantly less with 4% of
21% of the pool. As represented by the figure below the respondents in the 45-54 category, 1% in the
, in terms of age, the most prevalent age group was 55-64 category, and 0.5% freelancers older than
25-34 years (42%) followed by 18-24 years (33%). 65 years.

Around 63% of the respondents
had attained graduate education
while 28% had undergraduate
degrees. The prevalence of less
educated freelancers was relatively
low with only 8% possessing a high
school diploma. On the other hand,
freelancers who had attained a
PhD degree were also quite low,
with 2% representation.
Majority of the respondents had graduated mentioned Computer Science as the subject
from Karachi University, with the rest of the in which they earned their degree, followed by
respondents mentioning Iqra University, Punjab Business Administration. Other subjects mentioned
University, Shaheed Zulfiqar Ali Bhutto Institute of were Accounting and Engineering. Other subjects
Science & Technology (SZABIST), and National and degree disciplines were clubbed in the
University of Modern Languages (NUML). An ‘Other’ category in the survey and upon closer
interesting trend to be noted was that aside from examination it was revealed that they comprised
Karachi University, the most common alma mater of various subjects in social sciences, humanities,
mentioned in the responses was Virtual University and the arts, none of which were frequent enough
(VU). The overwhelming majority of respondents to constitute a well-represented category.

Majority of the freelancers attended public
or low-cost private universities, with a majority
attending Virtual University (VU). Many freelancers
completed their degrees from VU during their
freelancing journey. This allows us to conclude
that freelancers considered it important to obtain
a formal university degree and attended VU as it
allowed them to graduate online.
This demographic insights reveal several important assumption that under-represented and minority
trends with respect to the freelancing landscape communities are disadvantaged in the freelancing
in the country. Majority of the freelancing market market as well. Carrying out a cross-variable
is dominated by men, whereas the representation analysis of gender and degree distribution, it is
of women is significantly less, even though a also apparent that males dominate the computer
good number of women are participating in the science and other technical fields by a wide
freelancing community. No other gender category margin. Women are more likely to enroll in business
was notable in the survey results, solidifying the and arts programs at the university level.

Freelancing seems to appeal to the younger young Pakistanis are still choosing to obtain
age groups, particularly adults between 18-34 traditional degrees. The diversity in educational
years of age. These young adults are also highly backgrounds, with a mix of different disciplines
educated, which is reflected from the dominance and institutes, indicates that freelancing is not
of graduates in the survey results, followed by confined to specific fields of study or educational
undergraduates. This allows us to conclude that institutions. However, individuals with technical or
despite the prevalent notion that freelancing allows business backgrounds are more likely to pursue
freedom from traditional educational structures freelancing, as opposed to students who obtain
and that anyone can earn well via freelancing, their degrees in other fields.

83% of the
Respondents
were from
Sindh (43%) &
Punjab (40%)

In terms of geographical distribution, majority of be noted that a large number of respondents
the respondents were from Sindh, closely followed selected the ‘Other’ section and mentioned their
by Punjab. The other major chunk of responses cities, which were largely small towns and villages
were from Islamabad Capital Territory followed throughout Pakistan.
by Khyber Pakhtunkhwa (KP), and Gilgit Baltistan. A good number of freelancers are operating from
There were a smaller number of responses from small towns and villages throughout Pakistan and
Balochistan and Azad Jammu & Kashmir. In terms are also earning well, with the majority of them
of cities, the most mentioned large cities were being young. Females comprise a significant
Karachi and Lahore, followed by Islamabad, portion of this category. The figures below show
Rawalpindi, Faisalabad, Multan, Gujranwala, the gender distribution across provinces and cities
Peshawar, and Hyderabad. It is a key trend to in Pakistan.

Freelancing Profile Insights
Majority of the respondents indicated that they PKR income brackets. 28.51 % of freelancers also
had spent around 1-5 years in the freelancing reported higher earnings in the range of 100,000
market. Consequently, majority of the respondents to 500,000 and even above 500,000. However,
reported a monthly income in PKR that was on the the number of years spent freelancing and
lower end. A significant portion of respondents monthly income did not show a very well-defined
earned less than 15,000 PKR per month. An equal correlation. Many freelancers earn relatively well
number of respondents reported earnings in the despite a smaller number of years spent in the
15,000 - 30,000, 30,000 - 50,000, and 50,000 -100,000 freelancing market.
No correlation between number of years spent

freelancing and monthly income
23% of freelancers are engaged in low-paid

niches, which have a high chance of automation
in the future with AI

55% of the respondents indicated that they
supplement their income from other sources as
well and that freelancing is not their only source of
income. Pursuing a teaching job on the side was
common for many freelancers and 6% held down
teaching jobs. Around 36% were also pursuing
remote full-time jobs alongside freelancing. This
has been an increasing trend since COVID-19. Small
businesses were also owned by many freelancers.
Consequently, 48% freelancers reported that
freelancing contributed towards financing less
than 25% of their household expenses. 23%
reported that they financed 25% to 50% of their
household expenditures via freelancing. 15%
used their freelancing income for 50-75% of home
expenses, while only around 15% financed 75%
to 100% of their home expenses via freelancing
income.

The freelancers were also requested to select up skillsets as well, most commonly referring to video
to 3 freelancing niches that corresponded to their editing, social media management, data entry,
income generation, and the results indicated a and typing. 23.23% of freelancers are engaged in
diverse range of skills and niches in the freelancing low-income niches, and indicated their expertise
community. Web development, graphic design, in skillsets which are not very well paid like data
content writing, e-commerce management, and entry, content writing, and translation and have
digital marketing were among the most commonly a good chance of being automated, especially
indicated niches with many freelancers possessing with the advent of Artificial Intelligence. This is a
expertise in multiple areas. Freelancers also point of concern.
indicated that they possessed a variety of other

Majority of the freelancers are working in multiple
niches and possess more than one skillset. Each
freelancer indicated that they were working in
2-3 areas at the minimum. Most combinations
included graphic design, digital marketing, and
content writing. This means that freelancers
engaged in graphic design are also doing
content writing and digital marketing. Similarly,
e-commerce management, digital marketing,
and search engine optimization (SEO) was
another commonly occurring combination. A
variety of other combinations were also present.
In terms of payment methods, various payment reported that they worked with international
methods are used by freelancers. These are clients, 21% with local clients, and 43% with both.
indicated in the graph below. 36% of freelancers

Freelancing Platforms
With regards to their primary sources
and platforms for securing jobs and
gigs, a number of platforms were
indicated, with the most common
one being Upwork, followed by Fiverr,
and Freelancer.com. Freelancers also
used a combination of these platforms
and did not rely on one platform
solely. Aside from the above, many
secured jobs via social media primarily
freelancing groups on Facebook and
LinkedIn. A significant portion reported
that they secured jobs via referrals and
word of mouth.

18% of respondents indicated that they had not The data demonstrates a varied engagement in
participated in any upskilling or training programs. upskilling programs, with a mix of online courses,
50% reported participation in online courses on government-initiated programs like DigiSkills.pk,
Coursera and Udemy. Majority of the freelancers and other platforms. The diversity in the training
participated in multiple programs such as sources reflects the broad range of learning
DigiSkills.pk (19%) combined with online courses. opportunities available to freelancers.

Freelancers reported common
challenges with regards to
payment platforms, taxation,
online scams, and internet
connectivity.
With regards to challenges faced in their freelancing issue was the risk of online scams, highlighting
journeys, the most frequently mentioned challenge concerns about frauds and scams targeted at
was problems with payment platforms, indicating freelancers. The costs associated with sending and
issues with receiving international payments due receiving international payments were a notable
to poor or missing services. Freelancers were concern as was the challenge of obtaining a
concerned about high taxes on overseas income stable and fast internet connection for work. These
reflecting the financial burden of taxation on are elaborated in the next section.
income earned from foreign clients. A prevalent

05.
Qualitative Insights
Key Trends

This section outlines the key trends that were The table below represents the individuals
assimilated after carrying out a number of interviewed. Majority of the stakeholders are
qualitative interviews with relevant stakeholders. anonymized. The names of several stakeholders
These interviews were in-depth and semi-structured are mentioned with their consent.
in nature, each constituting of around one hour.
Stakeholder Profile
Freelancer Mechanical Designer from Kasur
Freelancer Web Developer from Lahore
Umme Ayesha Video Editor from Islamabad
Freelancer Commercial Advertisement & Social Media from Islamabad
Saud Shahid Head of Trade & Foreign Remittance – Bank Islami
Freelancer Web Developer from Karachi
Freelancer UX & UI Design Consultant from Lahore
Freelancer Financial Services Consultant from Karachi
PITB PITB – Trainer (e-Rozgaar)
Freelancer Flutter Developer from Faisalabad
Faiza Yousuf COO CaterpillHERs, Product Manager
Freelancer Web Developer from Lahore
Muhammad Kashif Web Developer from Mehrabpur (Interior Sindh)
Freelancer Data Scientist from Islamabad
Kibria Ahmed Artificial Intelligence from Dera Ghazi Khan
Hira Saeed Founder & CEO, CaterpillHERS & Koi.work
Stakeholder DigiSkills.pk

Majority of the freelancers interviewed had as he would simply be replaced, as there would
switched over to freelancing from traditional always be people willing to work for less. He stated
jobs and had experienced a traditional work that this was the opposite in freelancing, and he
environment. They gave similar reasons for earned as much as he worked, motivating him to
switching to freelancing, citing unsatisfactory pay pursue this as a full-time career. Most freelancers
scales and inflexible work cultures. One freelancer were not concerned about losing out on the perks
related how he had completed ACCA and was that are associated with traditional jobs like health
working as an income auditor for 10 years. He insurance and pension plans. Most of the firms in
switched to freelancing as he was not happy with Pakistan do not offer very good perks and so the
the job market in Pakistan, where effort put into opportunity cost of losing out on them was not felt
one’s work does not reflect in salaries and perks. very severely, especially when considering the
He was also not able to ask his employer for a raise increased income from freelancing.
Major Push
Factors Towards
Freelancing
Unsatisfactory pay scales in traditional jobs. Lack of perks like healthcare and pension
plans in traditional jobs in Pakistan so no
motivating factor to stay. Freelancing
inflexible work cultures in traditional jobs. provides increased income with increased
effort/time spent.
Word of mouth and encouragement of

COVID -19 major push factor.
friends/family major push factor.

It was also noted that many freelancers had their friends and other individuals in their network
started their journeys during COVID-19, due to and social circles. Word of mouth was a major
a combination of factors such as being laid off contributing factor in encouraging individuals to
from their jobs or having the time to pursue other start freelancing, as they saw others in their circle
projects while working from home. COVID-19 has, benefitting from various opportunities. Freelancers
therefore, been a major push factor in encouraging reported increased earnings and exponential
skilled professionals to pivot to freelancing to growth a few years into their journeys, as compared
increase and diversify their income sources. Most to expected earnings if they were still working their
of the interviewees, when relating their journeys, traditional jobs. A better work-life balance was
stated that they were encouraged to freelance by also reported.
Freelancers reported
increased earnings,
exponential growth,
and better work-life
balance, as compared
to traditional jobs
The freelancers who were high earners all stressed of LinkedIn and freelancing platforms. A common
on the importance of research before starting trend was that freelancers had tried out working in
out. They stated that it was extremely important multiple niches before landing on one that proved
to assess the market before putting out their first beneficial to them. Another freelancer stated how
bid or proposal on freelance platforms or reaching learning how to navigating freelancing profiles is
out to people for gigs. One freelancer related how extremely important and there are ‘tips and tricks’
he had started off with digital marketing and had to ensure you are able to reach clients and your
taken several courses on DigiSkills.pk. However, hard skills are not a factor in this at all. For example,
upon further assessment of the market and his own a proposal has to be sent to a client in 10-15
skillset and interests, he realized that developing minutes after he has advertised the job, otherwise
a niche in QuickBooks and accounting would be the chance of landing the gig is minimum which
better for him, especially due to the high demand means freelancers have to strategize the time they
of accountants and bookkeepers on Upwork. He spend on these platforms. None of the freelancers
ended by saying that every individual who wishes were operating on one platform and had accounts
to pursue freelancing should start by carrying out on at least 2-3 freelancing platforms, navigating
an intensive self-assessment and an analysis of the the intricacies of client dealings in each.
current trends in the market through the perusal

It is extremely important to carry
out thorough research and analyze Freelancers commonly try multiple
market trends on LinkedIn and other niches before settling on one that
freelancing platforms before starting suits them
out on the freelancing journey.
Majority of freelancers operate

It is important to learn how to multiple accounts on various
navigate freelance platforms like freelance platforms and need to
Upwork. This is more important than learn ‘tips & tricks’ to navigate each
learning hard skills. and also to carry out client dealing.
An important trend that was noted throughout the trend that was noted throughout the qualitative
qualitative interviews was that freelancers did not interviews was that freelancers did not credit their
credit their success to their traditional education success to their traditional education even though
even though they placed a high priority on they placed a high priority on attaining a formal
attaining a formal degree at the university level. All degree at the university level. All of them were
of them were educated at least up till the graduate educated at least up till the graduate level, while
level, while those who had started their freelancing those who had started their freelancing journeys
journeys before graduating had elected to before graduating had elected to continue their
continue their studies part-time or enroll in an online studies part-time or enroll in an online university like
university like Virtual University. However, none of Virtual University. However, none of them affirmed
them affirmed that their university education had that their university education had enabled
enabled them to succeed in their freelancing them to succeed in their freelancing career. Their
career. Their traditional education had been traditional education had been outdated and
outdated and removed from industry and market removed from industry and market requirements.
requirements. One freelancer noted how he was One freelancer noted how he was attending
attending Virtual University for Computer Science Virtual University for Computer Science where
where lectures had been last recorded in 2004 lectures had been last recorded in 2004 and had
and had not been updated since. An important not been updated since.

Dissatisfaction from
01 Traditional Education
Most freelancers obtained a traditional

university degree, even though they did not
credit their success to this education which
they claimed was inadequate.
Inadequacy of
03 02 Government Initiatives
Programs like DigiSkills.pk and e-Rozgaar are

inadequate as they do not teach in-demand
skills, are outdated, and the curriculum is
01 very basic.
Importance of
04 03 Mentorship
Mentorship is critical for the success of

freelancers. Those who did not receive it
made sure to provide it to others.
02
Importance of
04
05 Online Platforms
Marketable skills are truly developed via

online platforms like Udemy, Coursera,
and LinkedIn Learning. Youtube is the most
effective and popular resource, which also
provides contextual guidance.
Continuous Skill
04 Upgradation
The key to success for a freelancer in Pakistan

is continuous skill upgradation, especially
with the advent of Artificial Intelligence.

With regards to mentorship, all cited a lack of their students in a better manner. The content of
it at the university level and noted that career these programs is also very basic and can develop
guidance had been lacking. They stressed the an understanding of freelancing in the youth who
importance of mentors and good mentorship enroll in these programs. However, they are not
especially with regards to freelancing. It was a sufficient in developing the hard and marketable
common trend that the individuals interviewed skills that are in-demand in the market, due to their
were also teaching and providing instruction to limited curriculums. One freelancer stated how
young entrants in the field, with several providing the skills that students learn in these programs are
free-of-charge mentoring sessions. One freelancer known by most clients themselves, and to develop
narrated how he had taken on 10 young aspiring their skills further students have to depend on self-
freelancers and would hold regular sessions with learning.
them and develop customized roadmaps to
enable them on their journeys. He said that this
could prevent many years of struggle, which he
himself had gone through in his early career due
to lack of mentorship.
An interesting trend that was prevalent was

freelancers’ reviews of programs like DigiSkills.pk
and e-Rozgaar. DigiSkills.pk is a large-scale national
1. Curriculums are not updated.
level training program launched by the Ministry
2. Trainers are not allowed
of Information Technology & Telecommunication
to revert from the set
(MoITT) through Ignite to provide free of cost
curriculums.
trainings in freelancing and other marketable skills
3. Curriculums are not
to the youth. The program comprises 10 courses
designed according to latest
including freelancing, digital marketing, search
engine optimization, graphic design, digital
technology and market
literacy, e-commerce management, creative trends.
writing, QuickBooks, AutoCAD and WordPress. 4. Courses are designed for
e-Rozgaar is a similar program offered by the complete beginners and
Punjab Information Technology Board (PITB). can give an introduction
The freelancers related the curriculums of these to freelancing. However,
programs were outdated and not according they fail in imparting hard,
to latest developments in the market and in the marketable skills.
technology field. One freelancer who had also 5. Most of the content that is
served as a trainer in e-Rozgaar stated that these taught is known by clients
curriculums had not been updated for several years themselves.
and due to bureaucratic intricacies, trainers were
not able to revert from the set curriculum. However,
they would often mention new developments and
technologies during lectures as a way of guiding

1. It is free
2. A lot of content is produced in Urdu
3. Guidance in the context of Pakistan is
easily available.
4. Content from beginner to advanced
level is available
5. Latest trends are continuously updated.
Due to the inadequacy of traditional university their skills and stay abreast of the latest industry
education and government training programs, all trends to remain competitive. This may include
freelancers interviewed stated that they had truly acquiring expertise in areas such as artificial
developed marketable skills via self-learning on intelligence, blockchain, and data science,
online platforms like Udemy, Coursera, Skill Share, which are anticipated to be in high demand. In
and LinkedIn Learning. All possessed multiple opposition to common perception, freelancers
certifications from these platforms. However, the are not wary of recent developments in Artificial
most common learning platform mentioned was Intelligence and are not anticipating that their
YouTube. Freelancers acknowledged that they skill sets will be automated and made redundant.
had acquired majority of their skillsets via free Most are appreciative of the benefits offered by
tutorials and videos on YouTube, many of which Artificial Intelligence and are upgrading their skill
are now being produced in Urdu making them sets to incorporate these new tools. One freelancer
easily accessible to the Pakistani audience. Many related how he was integrating AI into the current
cited the importance of YouTube as a contextual services he provides in finance. Good quality
learning resource with the added benefit of being talent will not be replaced, and problem solving,
free. This meant that there were many problems and critical thinking skills will be most valued in the
that were encountered by freelancers in their future marketplace of jobs along with an ability
journeys due to their unique situatedness in to learn. Freelancers performing redundant tasks
Pakistan. In this scenario, highly relevant videos on will be pushed to upgrade their skills, and acquire
YouTube were beneficial in providing relevant and in-depth knowledge as opposed to surface
contextual guidance. level understanding of their respective niches.
It was also noted that the skill requirements in the Freelancers need to be continuous learners as the
freelance market are expected to evolve in the technological landscape is evolving rapidly, as it
future. Freelancers must continuously upgrade had never done before.

More than hard/technical skills, freelancers
commonly stated that developing communication
skills was essential to their success. Freelancing
is a sales pitch and communication skills were
considered more important than other skills,
particularly with regards to dealing with clients.
communication
In this respect, personal branding was deemed
Skill
extremely important. Networking was also
considered important throughout the pool of
freelancers interviewed, as a tool for learning,
obtaining mentorship, and securing jobs. This was
especially true for freelancers from small towns
and cities. A freelancer from Kasur stated that
seminars and conferences offered 100% growth.
One freelancer from a small town in interior Sindh
stated that he had chosen to work in WordPress
due to the numerous conferences and networking
events that were organized by the WordPress
community. He stated that this community was
very generous and provided good advice, which
had been instrumental in his growth. Another
stated that he had joined a skills development
bootcamp simply for the networking opportunity
it would offer him, as opposed to teaching skills.
Another key trend that was highlighted was

that freelancers do not obtain majority of their
projects/gigs from online freelancing platforms
like Upwork. They use these tools to explore the
market and launch their careers. However, once
they establish good connections with some long-
term clients, they migrate off these platforms
and work by dealing with these clients directly.
High-earning freelancers credited their success
to developing long-term clients, eliminating the
need for participating in further competition with
other talent on freelancing platforms. This was not
done very easily as understanding the mindset of
foreign clients proved to be difficult.

Good communication skills, personal branding, and
a networking are the most important determinants of
success, above skill development.
Freelancers secure majority of their projects/ Experienced freelancers and new entrants
gigs via direct client dealing and successful into the ecosystem must be treated as
freelancers develop long-term relationships separate categories of freelancers.
with the same clients.
Key
Freelancers develop an
entrepreneurial mindset and
outsource their work to other
Trends After COVID-19, most
freelancers are pursuing
full-time remote jobs as
freelancers, shifting their well as freelancing.
focus to client dealing.
A trend that was prevalent was that freelancers had established his own agency by 2023. Many
developed an entrepreneurial mindset after they entrepreneurs are turning to online freelance
had spent several years in the market. Majority of platforms to get their tasks completed, hiring
freelancers who had been working for at least 3-4 freelancers. Once these freelancers become
years had started outsourcing their work to others successful, they turn into entrepreneurs and start
and started off by hiring one to two persons for outsourcing part of their freelance jobs. It is a key
this, which often developed into agencies with 15- trend that many freelancers who advertise their
20 employees. One related that she had hired 18- services on Upwork also possess client accounts
20 employees, who completed the work that she on the same platform, looking for other talent to
got from her clients, whereas she was involved in outsource work to. Upwork is also termed as the
client dealing only. This was a common trend that entrepreneurs testing site as many entrepreneurs
after developing their skill sets and establishing a turn to that platform for executing their new ideas
steady client base, freelancers would delegate that do not have a solid foundation in the actual
actual work to employees that they hired and market yet. This allows freelancers to work with
then focus on client dealing only. The journey emerging and new technologies and ideas, giving
from starting out to establishing one’s own agency them an understanding of the ‘next big thing’. If
was also completed rather quickly often times. they strategize well, they are very well placed to
One freelancer started this journey in 2020 and get an advantage of this knowledge and learning.

Another trend that was recognized is that category analyzed separately to get a complete
freelancers are generally all clubbed into one understanding of the freelancing ecosystem in
category which is an inaccurate method of Pakistan.
understanding this ecosystem. Freelancers who Another trend that was apparent was that
have been in the market for at least 5 years freelancers often obtained remote full-time jobs
and new entrants into this field are completely as well, especially after COVID-19. They diversified
different from each other and face uniquely their income sources and reaped the benefits
different challenges. New entrants find it difficult of freelancing as well as holding a more typical
to obtain their first few projects and work with job. Men often had both while women seemed to
other freelancers who give them a low pay cut actively prefer and look for a full-time remote job.
on the projects they secure from clients. It is not With regards to challenges, the answers were
easy for them to segue into the market as there uniform as most freelancers are faced with similar
are very successful players who capture a large challenges, albeit with different intensities due to
clientele base. They also have a lot of resources their backgrounds, geographical locations, and
at their disposal to learn skills, but this often leads gender. Freelancers cited the same challenges,
to confusion and misinformation, especially with but some were affected by one challenge more
the absence of well-defined roadmaps. This is why whereas others related their discomfort due to
mentorship is extremely important for new entrants. another challenge. The challenges are highlighted
Therefore, it is essential that categorizations be in the next few paragraphs.
made with regards to freelancers and each

Freelancers in Pakistan face significant challenges of the challenges of high transaction costs and
regarding payment methods, particularly when unfavorable exchange rates by providing virtual
receiving payments from international clients. accounts in multiple currencies. This method is
These challenges stem mainly from the limited more efficient for receiving payments, especially in
availability of popular payment services within the USD, and converts them to local currency at more
country and the additional complexities involved favorable rates. However, it’s not an integrated
in using online freelancing platforms. option on most freelancing platforms. Direct
One of the primary issues is the absence of PayPal transfers to local bank accounts or using money
in Pakistan, a major global payment service widely exchanges like Western Union are also options.
accepted across various freelancing platforms like However, they are often less favorable due to
Upwork, Fiverr, Freelancer.com, Guru, and People higher transaction fees and poorer exchange
per Hour. PayPal’s unavailability is a significant rates.
drawback for Pakistani freelancers, as it is the only The issue is compounded by the freelancers’
payment method offered across all these platforms. inability to retain earnings in foreign currency.
This forces them to seek alternative payment Unlike IT service exporters registered with the State
solutions. Fortunately, there are alternatives Bank of Pakistan, who can retain a portion of their
available, though each comes with its own set remittances in foreign currency, freelancers are
of limitations. Payoneer, for instance, is a widely compelled to convert their earnings into Pakistani
accepted option on most freelancing platforms. It Rupees, exposing them to the risk of currency
allows users to link their local bank accounts and devaluation. The existing legal framework, while
facilitates easy transfer of payments. However, offering certain benefits, also presents challenges.
transaction fees and slightly lower exchange rates Key among these is the inconsistency in the
compared to the market can be a downside. Skrill is implementation of the Foreign Exchange (FE)
another option but is limited in its availability, being Manual 2002 provisions at the bank level. While the
offered only on Freelancer.com. Like Payoneer, it FE Manual allows freelancers to retain a portion of
allows for direct bank transfers but might not be as their foreign earnings in special foreign currency
convenient for freelancers using other platforms. accounts, this is not uniformly practiced across
Wise offers a unique solution, especially for those banks in Pakistan, leading to uncertainty and
engaging directly with clients. It bypasses some potential financial losses for freelancers.
While there are several payment solutions

available to Pakistani freelancers, each has
its limitations. The absence of PayPal, high
transaction fees, unfavorable exchange
rates, and the inability to retain earnings in
foreign currency are key issues that need
to be addressed to support the growth of
freelancing in Pakistan.

On the taxation front, the situation is equally
complex. The Government of Pakistan has shown
intent to support the IT/ITeS sector and freelancers
with various incentives, including tax exemptions
under section 65F 1(c) of the Finance Act. However,
the recent amendments in the Finance Act 2022
have altered these provisions. The requirement for
freelancers to register with the Pakistan Software
Export Board (PSEB) to avail a reduced tax rate
of 0.25% on gross receipts adds another layer of
administrative procedures. This change, while
intended to streamline the tax process for IT and IT-
enabled service providers, could be burdensome
for freelancers who must now navigate additional
bureaucratic steps to benefit from tax incentives.
The unavailability of escrow services in Pakistan milestones, especially beneficial for large projects
poses a significant challenge for freelancers, with multiple deliverables. The use of escrow
particularly in safeguarding their payments. services on these platforms also helps mitigate the
Escrow services, provided by a neutral third party, risk of non-payment, a common issue where clients
hold funds from one party and release them to fail to compensate freelancers even after project
another only after certain conditions are met. This completion. However, freelancers in Pakistan face
arrangement is crucial in ensuring that freelancers a unique challenge as popular escrow services
are fairly compensated upon the successful like Escrow.com do not operate in the country.
completion of their projects. In the context of Additionally, Escrow.com’s incompatibility with
online freelancing, platforms like Fiverr, Upwork, commonly used payment services such as
and Freelancer.com integrate escrow services to PayPal, Payoneer, and Wise further complicates
protect payments. These platforms release funds the situation for Pakistani freelancers, leading to
to freelancers either after the completion of the delays and defaults in payments when dealing
entire project or in parts upon achieving specific with clients outside these platforms.

Freelancers are increasingly challenged when
they deal with the banking infrastructure in the
country. It is difficult to open a freelancing bank
account and one freelancer narrated that
freelancing accounts are a myth, the opening
of which depends on bank managers of each
branch of a bank. Freelancers also expressed
disappointment with regards to customer
support and other support organizations.
Freelancing accounts on platforms like Upwork
can get restricted due to small violations, after
which it is difficult to get in touch with customer
support representatives and helplines. For this
reason, freelancers maintain accounts on
numerous platforms.
Many of the challenges that freelancers face are ensure a minimum quality of service, a necessity for
rooted in the country’s digital infrastructure and the burgeoning number of freelancers and digital
connectivity issues. These obstacles are particularly entrepreneurs in these areas. Political events have
pronounced in second and third-tier cities, where also had a direct impact on digital connectivity.
the infrastructure is less developed compared to For instance, the arrest of the ex-Prime Minister
major urban centers. Freelancers operating in Imran Khan led to nationwide telecommunication
these regions often contend with power outages service suspensions, with popular social media
lasting between 12 to 16 hours, forcing them to sites and services like Twitter, Facebook, and
rely on various backup solutions to maintain their YouTube being blocked. This disruption was not just
workflow. The situation is further compounded by an inconvenience but had severe implications for
inadequate internet services. Telecommunication freelancers and the larger gig economy. Fiverr, a
companies in these regions are not stringently global online marketplace for freelance services,
regulated, leading to substandard internet speeds responded to this by automatically making
and quality. Despite claims of 4G availability, the Pakistani freelancers’ gigs unavailable to protect
reality in smaller cities, especially those in the their response rates and ratings during the internet
interior of Sindh, is far from these assertions. The shutdown. There is also a lack of affordable co-
Pakistan Telecommunication Authority (PTA) faces working spaces, especially in smaller cities and
challenges in regulating these companies to towns.

The broader picture of Pakistan’s digital global benchmark of 40%. Additionally, only a
landscape reveals several systemic issues. The third of the available spectrum is utilized for public
country’s performance on the Fiber Development or commercial connectivity, limiting the quality
Index is poor, reflecting low internet penetration. and coverage of mobile internet. These factors
Despite a notable 2.3x growth in total broadband contribute to Pakistan ranking 75th out of 79
subscribers since 2016, less than half of the countries on the GCI 2020, with a score of 28/120.
population has access to internet broadband. The In terms of device ownership, 63% of the population
internet penetration rate stands at only 36%, with owns a mobile phone, but smartphone penetration
a significant gender gap wherein women are 38% is even lower at 40%. This indicates that a large
less likely to have internet access compared to portion of the population lacks access to devices
men. necessary for complex digital tasks. Rising inflation
Pakistan heavily relies on mobile broadband due and heavy taxation have further impacted
to its weak fixed connectivity infrastructure, with the affordability of mobile and smartphones.
only six primary fiber cables covering 130-150K Sociocultural barriers also play a role in limiting
km. This limited deployment results in a low fiber- mobile phone ownership among marginalized
to-tower ratio of 5-10%, significantly below the groups, especially women.

Women are faced with a set of unique challenges safe and prefer to ask them to work from home
on top of the issues discussed so far. According to instead. This is also true for general perception and
Faiza Yousuf, COO of CaterpillHERS, a career and concern about office environments which families
business accelerator which provides women with are often worried about. Due to these reasons,
upskilling and freelance opportunities, women are women turn to freelancing where they are faced
looking for remote jobs as opposed to freelancing with a set of unique problems as well.
as freelancing is perceived as inconsistent and it Female freelancers are faced with the triple
takes time to establish oneself and get your first few burden of work as they are expected to look after
projects. Due to the increased urgency for earning the household and the children and elderly, as
an income to supplement household expenses, well as expected to contribute towards household
women are looking to obtain full-time, remote expenses. The same is not expected from their
work. This is not disregarding the fact that there partners. Women are disadvantaged in other
are a significant number of female freelancers as structural ways. It is more difficult for them to open
well. bank accounts and are often asked to show a
Female freelancers overwhelmingly list the ability male family member in the process. They are
to be flexible and work on their timelines and often unable to reap the benefits of networking
hours as the contributing factor towards turning to and obtaining mentorship, as it is difficult for them
freelancing. Men turned to freelancing for better to step out of their homes. As a consequence,
quality of work and increased income while women women often select less technical areas to
majorly credit the ability to have a flexible work specialize and develop their skills in. Women who
structure to allow them to cater to their homes and are successful and manage to become high
families. Others mentioned that they were unable earners in the freelancing sphere often credit this
to work an in-person job due to mobility constraints. to their husbands and in-laws. Umme Ayesha, who
Due to the way Pakistani cities are structured with was interviewed as part of this study, stated that
limited mobility options and dearth of public her husband was her support in her journey along
transport, women find it impossible to commute with her in-laws who would not burden her with
to work. They do not own cars and using Uber/ household tasks. He even left his job with a good
Careem/InDrive is expensive and deemed unsafe organization to support her work, enabling her
as well. Women cannot use other cheaper modes success.
of transport as their families do not consider them

06.
Successful
Freelancer
Journeys
The stories of Umme Ayesha, Muhammad Kashif, and Kibria Ahmed illustrate the varied paths and
challenges in the freelancing world. Their experiences show the importance of skill development,
adaptability, and persistence in building a successful freelance career. Their journeys, while different
in nature, both demonstrate the potential for growth and success in freelancing within Pakistan.

Umme
Ayesha
Inspiring Entrepreneurial
Journey
Umme Ayesha, based in Islamabad, began her efforts on platforms like Fiverr and Upwork. Umme
freelance career by creating a YouTube channel. Ayesha’s story highlights the importance of family
With no formal training in video editing or graphic support and collaboration in freelancing. She
design, she learned these skills through online believes in continuously updating her skills to stay
resources, particularly YouTube. Her channel, relevant in the field. Currently, she manages a
aimed at children, showcased her journey as a team of 18-20 people, focusing on quality control
mother, and one of her significant achievements and client management. She has increased
was mentoring her child to become one of her income exponentially via freelancing and
Pakistan’s youngest 3D animators. Her career path spends around 2-3 hours per day on managing
involved experimenting with various ideas before tasks related to her agency. The rest of the day is
finding success. Her husband, who previously held devoted towards spending time with her children
a position in a well-known IT company, joined her and family.
in this venture, contributing to their combined

Muhammad
Kashif
Breaking Boundaries in
Interior Sindh
Muhammad Kashif’s journey into freelancing known for its advice-sharing culture and
began after receiving a Computer Science regular networking events. He faced significant
scholarship from Ignite in 2007 to attend FAST challenges, such as frequent power outages in his
University. Coming from a small village in interior village, requiring him to maintain multiple backups
Sindh, he initially struggled with adapting to to continue working. Eventually, Kashif’s client
new technology, including learning how to use base grew to the point where he had to expand
a computer. He began exploring platforms like his operations, leading him to hire additional staff.
Upwork in his last semester at university, where he Beyond his personal freelancing success, Kashif
quickly realized the need for additional learning contributes to the broader community. He is a
and research after his initial projects. This period founding member of e- Rozgaar and helped design
involved balancing a job while developing his its curriculum. Additionally, he teaches WordPress
freelancing skills. Kashif chose to specialize in at DigiSkills.pk and educates students at Shah
WordPress, driven by the practical demands of Abdul Latif Bhitai University about freelancing.
projects and the supportive WordPress community,

Kibria
Ahmed
From Theater Studies to
Freelancing Success
Kibria Ahmed was a pre-cadet at an air force to reaching a point where his work significantly
college, but his path took a sharp turn when he improved his family’s financial status, even enabling
found himself studying theater at Beaconhouse them to own a home. Being in southern Punjab,
National University (BNU) on a scholarship. In a a region marginalized in terms of infrastructure
surprising move, Kibria dropped out during his last and resources, he faced foundational obstacles.
semester and returned to his hometown, Dera Ghazi The lack of reliable internet and electricity posed
Khan. Here, he found himself in an environment significant hurdles in establishing and sustaining a
where opportunities to utilize his skills in screenplay freelancing career. Despite these barriers, Kibria
writing were limited. It was during this time that he Ahmed’s journey reflects how perseverance and
stumbled upon Upwork, a freelancing platform. adaptability can lead to success in the freelancing
Starting his freelancing journey post-pandemic world. His transition from a theater student to a
in 2020, Kibria experienced what he describes successful freelancer highlights the potential for
as an ‘enlightening journey’. His evolution in the individuals to carve out successful careers through
freelancing world was rapid and unexpected; online platforms, even in the face of geographical
from earning a mere $10 in the first two months and infrastructural challenges.

07.
Key Initiatives by
Government and
Private Sector
This section traces the steps that have been taken so far to facilitate freelancers by
government as well as private sector stakeholders.

Government
Initiatives
Pakistan Software Export Board (PSEB)
Steps Taken by PSEB for Facilitation of Freelancers
1. A free centralized VPN gateway service and financial institutions, along with subsidized
was established to enable the Pakistan health and life insurance and home loan
Telecommunication Authority (PTA) to whitelist schemes under certain conditions, were
and provide services to verified freelancers, proposed for financial support.
with IP whitelisting for VOIP traffic up to 200kbps 6. The opening of foreign currency bank accounts
for PSEB-registered freelancers. for registered freelancers was facilitated with
2. Facilitation desks were proposed at PSEB offices a fast-track and simplified account opening
and Software Technology Parks to resolve process, allowing the retention of a certain
issues related to taxation, banking, intellectual percentage of foreign exchange.
property rights, VOIP whitelisting, VPN, and 7. The establishment of technology business
other legal or commercial matters quickly. branches of commercial banks in at least
3. Visa facilitation for registered freelancers with six cities in Pakistan, in collaboration with
an export income exceeding $5,000 annually the State Bank of Pakistan (SBP), to provide
for three consecutive years, remitted through relevant training for staff to cater to the needs
formal banking channels, to ease international of freelancers and tech businesses.
travel for business. 8. Freelancer registration was streamlined
4. An incentivized registration fee package through a one-step process on the Pakistan
offers access to PSEB programs, subsidized Software Export Board Portal, interlinked with
training, accreditations, certifications, the Federal Board of Revenue (FBR) for an
seminars, office space at Software Technology automatic procedure.
Parks, international marketing, freelance 9. PSEB-registered freelancers benefit from
matchmaking opportunities, and a 20% reduced sales tax rates not exceeding 2%
registration fee discount from SECP for single against local services revenue earned and
member companies. relaxation in terms of sales tax payment
5. Collateral-free loans up to Rs 1 million at deadlines.
subsidized rates through commercial banks

The State Bank of Pakistan (SBP)
Steps Taken by SBP for Facilitation of Freelancers.
1. The SBP has encouraged specialized banking 5. The SBP allowed IT exporters and freelancers
products tailored for freelancers, with Faysal to open Exporters’ Special Foreign Currency
Bank partnering with Payoneer for streamlined Accounts (ESFCA) alongside their primary PKR
fund transfers, and JS Bank launching the JS accounts, with the ability to retain up to 50%
Freelancers account, recognizing freelance of export earnings or a minimum of $5,000 per
platform income as valid. month in their ESFCAs for various transactions
2. In collaboration with the Ministry of Commerce, without needing SBP or bank approvals.
the SBP increased the payment limit for 6. E-commerce exporters were exempted from
freelancers from US$ 5,000 to US$ 25,000 in filing Form-E for exports under US$ 5,000 in
February 2020, enabling freelancers to expand December 2020 by the SBP, simplifying the
their operations and create employment export process for freelancers and promoting
opportunities. ease of doing business for small entrepreneurs.
3. The SBP introduced the “PayFast” e-commerce 7. The “Customers’ Digital Onboarding
payment gateway, facilitating seamless Framework” was introduced by the SBP in 2021,
payment acceptance through various categorizing accounts into tiers with varying
instruments and partnering with Easypaisa for limits to meet freelancers’ diverse needs,
uninterrupted digital payments. including Asaan Digital Accounts (ADA), Asaan
4. A mechanism was introduced by the SBP in Digital Remittance Account (ADRA), and
August 2020 to facilitate outward remittances Freelancer Digital Account, each designed
to globally recognized digital service provider to cater to specific financial requirements of
companies, allowing local companies to make freelancers.
payments of up to US$ 200,000 to 62 digital
service providers without prior approval, and
up to US$ 25,000 per annum to providers not
on the list.

Ministry of Information Technology &
Telecommunication (MoITT)
Steps Taken by MoITT for Facilitation of Freelancers.
1. The government, through the MoITT, launched 6. The “Digital Pakistan Policy” document
an initiative providing interest-free loans outlines strategies for transforming Pakistan
of Rs100,000 to freelancers for establishing into a knowledge-based economy through
e-working centers, addressing workspace digital technology adoption, emphasizing
challenges. A groundbreaking initiative has digitalization, digital inclusion, e-governance,
been introduced, allocating Rs50 billion to and infrastructure development.
establish private-sector co-working spaces, 7. The National Broadband Policy 2021, drafted
aiming to benefit half a million freelancers by MoITT, targets broadband accessibility and
nationwide. affordability challenges, aiming to generate
2. A pilot project starting in February will enable revenue and attract investments, though it is
10,000 freelancers to receive payments through still awaiting finalization.
PayPal and Stripe via third-party facilitation, 8. The Right of Way Policy was approved by
allowing direct bank account deposits without the Federal Cabinet to expedite fiberization
needing a PayPal account. and fixed broadband access, despite facing
3. A new banking mechanism has been implementation challenges.
introduced for freelancers, requiring proof of 9. The Universal Service Fund (USF) has significantly
presence on platforms like Fiverr and Upwork, increased project rollouts, especially in
alongside a 50 percent dollar retention policy Balochistan and rural Sindh, with its budget
for the IT industry, offering debit card options for FY 2022-23 increased by 72%, focusing on
for domestic and international spending. expanding high-speed internet to underserved
4. The establishment of E-Rozgaar centers is areas.
underway to enhance freelancers’ productivity 10. New 3G/4G “Top-Up” spectrum blocks are
and strengthen Pakistan’s digital ecosystem, set for auction, with strategic guidelines
with plans for more than 250 centers, many of developed for 5G rollout, though the launch
which are already in progress. has been delayed to 2023 due to political
5. An initiative for revamping IT education factors.
includes conducting standardized tests for 11. International connectivity projects, such as
75,000 IT graduates, training 16,000 individuals the completion of the PEACE cable linking
in international certifications, and providing job Pakistan with France and plans for a new fiber
opportunities through the Industry Placement optic link from Khunjerab to Karachi under the
Program with government-provided stipends China Pakistan Economic Corridor (CPEC), aim
and cash awards for companies offering to enhance Pakistan’s digital infrastructure.
apprenticeships.

Private Sector
Solutions
Steps Taken by the Private Sector for Facilitation of Freelancers.
1. PaySay, a UK-based fintech with an office 4. Sadapay, a Pakistani fintech startup, facilitates
in Lahore, simplifies international payments online transactions by integrating with Apple
for freelancers by offering UK-based bank Pay and Google Pay, and introduces Sadabiz
account details, positioning itself as a faster for freelancers to set up business accounts and
and cost-effective alternative to PayPal and receive international payments efficiently.
Payoneer 5. HBL (Habib Bank Limited) formed a strategic
2. Savvy.com.pk operates as a freelance alliance with the Pakistan Freelancers
marketplace, connecting clients with Association (PAFLA) to provide freelancers
freelancers for digital services, offering and start-ups access to HBL’s Freelancer Digital
localized customer support and key account Current Account & Solutions, integrating them
management to simplify communication and into the formal economy.
the hiring process. 6. JazzCash partnered with Ignite to support the
3. Linkstar revolutionizes the gig economy by DigiSkills.pk program, allowing freelancers to
offering a commission-free marketplace with transfer money from Payoneer accounts to
tools for digital portfolio and store creation, JazzCash Mobile Accounts in real-time and
traffic and analytics management, and access at favorable rates, and enabling Payoneer
to business projects and learning opportunities. account registration via the JazzCash App.

08.
Comparison of
Pakistan with
Regional Freelance
Marketplaces

The freelancing ecosystems in India, Bangladesh, and Pakistan each offer unique advantages and face
distinct challenges, with significant contributions to the global online gig economy. This is a comparative
assessment focusing on the quality of human resources, government incentives, ease of doing business,
and other key statistics:
India’s Freelancing Ecosystem
Market Size & Growth:

India’s freelance market is one of the largest in the world, with a projected growth to $20-30 billion by
2025. The country saw a 46% increase in new freelancers from Q1 to Q2 in 2020, with average hourly rates
increasing from $21 in 2020 to $26 in 2022. The freelance sector could add $2.7 trillion to the global GDP by
2025.
Human Resources:
India has around 15 million gig workers engaged in various sectors, including IT, HR, and design. The
workforce enjoys a 50:50 gender distribution in the gig economy, contrasting with the traditional workforce’s
70:30 male-to-female ratio.
Government Incentives & Ease of Doing Business:

The Indian government’s policies towards the
gig economy are evolving, with increasing
recognition of freelance work’s potential.
Technology Penetration:
With 500 million smartphone users, India
presents a high potential for IT-related
freelancing opportunities.

Bangladesh’s Freelancing Ecosystem
Market Size & Growth:

Bangladesh has 650,000 freelancers, with 500,000 actively working, ranking 8th in year-on-year growth in
revenue in the 2019 Global Gig-Economy Index. Freelancers in Bangladesh earn an average income of
US$106 per month.
Human Resources:
Despite a high unemployment rate among the educated population, freelancing is seen as a respectable
career path. Internet penetration has grown significantly, supporting the freelancing ecosystem.
Government Initiatives:
The government has taken several steps to support freelancers, including the issuing of state-endorsed
electronic/virtual identity cards to freelancers for enhanced credibility.

Comparative Analysis
Quality of Human Resources

All three countries boast a large, young,
and tech-savvy workforce with a strong
presence in software development and IT
services. India and Bangladesh have taken
Government Incentives
significant steps to educate and train their
populations for freelance work. Bangladesh seems to have the most
structured government support for
freelancers, with initiatives like the
Freelancer ID. India’s overall economic
policies have indirectly supported the
growth of freelancing.
Freelancing Ecosystem
India, Bangladesh, and Pakistan have
each developed unique strengths
Ease of Doing Business
in their freelancing ecosystems, with
India and Bangladesh have developed India leading in market size and growth
platforms and policies that support potential, Bangladesh showing significant
freelancers, such as digital IDs and online government initiative and support, and
training resources. Pakistan’s ease of doing Pakistan making a substantial contribution
business for freelancers is indicated by to the global freelancing market, especially
its substantial freelance workforce and in software development.
global market share.

09.
Policy
Reccomendations
for Freelancer
Support
Based on the insights derived from the study, here is a draft of policy recommendations
aimed at supporting and incentivizing freelancers in Pakistan. These recommendations
address various aspects such as financial services, tax incentives, and infrastructure
development, particularly focusing on tier 2 and tier 3 cities.

1 Freelancer Identification
and Registration
1. Implement a system for issuing
Freelancer ID cards upon registration,
as has been carried out in Bangladesh.
PSEB can be the implementing agency.
2. Benefits linked to the ID include:
• Easier opening of bank accounts.

• Deemed registration with the
Federal Board of Revenue (FBR) for
tax purposes.
• Access to discounted internet
connections.
• Subsidized rates for co-working
spaces.
• Duty-free import of laptops
2 Financial Services
and Incentives
1. Classify freelancers based on earnings,
with increasing incentives for higher
income brackets.
2. Ensure access to basic financial
services like credit cards, home and car
financing, personal loans, and health
insurance.
3. Collaborate with the State Bank of
Pakistan (SBP) and authorized dealers
to facilitate receipt of funds in foreign
currencies.

3 Infrastructure
Development
1. Encourage both public and private
sectors to establish co-working spaces,
especially in tier 2 and tier 3 cities.
2. Focus on improving internet
connectivity in these areas to support
the digital needs of freelancers.
4 Taxation and
Incentives
1. Introduce a tax waiver for 3 to 5 years
on freelancers’ earnings.
2. Reintroduce the tax credit under Section
65F of the Income Tax Ordinance, which
was rolled back in the Finance Bill 2022.
3. Implement a low tax rate (e.g., 0.25%)
on freelancers’ income.
4. Offer cash incentives to reimburse
transaction charges up to 3%,
depending on the conversion rates used
by international payment platforms.

5 Education and
Training
1. Develop and update training
programs, focusing on market-relevant
skills and emerging technologies.
Collaboration with online platforms
for skill development and mentorship
programs could enhance the skill set of
freelancers.
2. Provide training in high-demand, high-
value skills such as AI, data science,
and blockchain to ensure Pakistani
freelancers remain competitive in the
global market.
6 Community Building
& Networking
Develop a strong community among
freelancers through events, online forums,
and local meetups to enable knowledge
sharing, networking, and collaborative
opportunities.

7 Monitoring and Support
Framework
1. Establish a dedicated body to monitor
the progress and address challenges
faced by freelancers.
2. Create a feedback mechanism for
continuous improvement of policies
and support systems.
8 Gender Inclusivity &

Support
Implement targeted initiatives to support
female freelancers, considering the
unique challenges they face, such as
mobility, safety, and work-life balance.
This might include creating women-
centric co-working spaces and online
networks for mentorship and support.
The proposed policies aim to create a conducive environment for freelancers,

recognizing their significant contribution to the economy. By addressing key areas
such as financial services, taxation, and infrastructure, these recommendations seek to
empower freelancers, especially in the evolving digital landscape of Pakistan.

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Research Overview - January 2024

Pakistan’s Transformative Digital Future: Growth Strategy And Roadmap

2. Introduction & Scope of Work 04

4. Research Limitations & Next Steps 08

5. Quantitative Insights – Key Trends 09

6. Qualitative Insights – Key Trends 24

7. Successful Freelancer Journeys 40

8. Key Initiatives by Government & Private Sector 44

9. Comparison of Pakistan with Regional Freelance Marketplaces. 49

10. Policy Reccomendations for Freelancer Support 53

Freelancing Landscape of Pakistan - Research Overview 2

PAFLA’s initiatives extend beyond advocacy; they include significant collaborations

Additionally, PAFLA is dedicated to empowering women by collaborating with organizations

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No correlation between number of years spent

23% of freelancers are engaged in low-paid

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Freelancer Mechanical Designer from Kasur

Freelancer Web Developer from Lahore

Umme Ayesha Video Editor from Islamabad

Freelancer Commercial Advertisement & Social Media from Islamabad

Saud Shahid Head of Trade & Foreign Remittance – Bank Islami

Freelancer Web Developer from Karachi

Freelancer UX & UI Design Consultant from Lahore

Freelancer Financial Services Consultant from Karachi

PITB PITB – Trainer (e-Rozgaar)

Freelancer Flutter Developer from Faisalabad

Faiza Yousuf COO CaterpillHERs, Product Manager

Freelancer Web Developer from Lahore

Muhammad Kashif Web Developer from Mehrabpur (Interior Sindh)

Freelancer Data Scientist from Islamabad

Kibria Ahmed Artificial Intelligence from Dera Ghazi Khan

Hira Saeed Founder & CEO, CaterpillHERS & Koi.work

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Word of mouth and encouragement of

Freelancing Landscape of Pakistan - Research Overview 26

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Majority of freelancers operate

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Most freelancers obtained a traditional

Programs like DigiSkills.pk and e-Rozgaar are