IT freelancers in Pakistan have collectively earned around $959 million during the first 10 months of FY26. This proves that, when provided with a thriving work environment, Pakistanis can perform exceptionally well. Social media that was once laced with negative comments about Pakistani remote workers is now full of posts praising the dedication and hard work of our people. But the story does not end here. This achievement should not distract the government from acknowledging infrastructural challenges that many freelancers face. First, unreliable internet means that their projects can be delayed indefinitely. It won’t be an exaggeration to suggest that most people here have carved their way out of these challenges and developed local solutions to ensure their work is uninterrupted. But there have to be assurances from the government that these constant internet shutdowns and low speeds will not happen again. Recently, due to fuel shortages caused by the war in Iran, power outages across the country have once again become quite frequent. This has affected internet speeds across the country.
In the world of freelancing, especially when foreign clients are involved, a delay of minutes could mean losing a project worth thousands of dollars. Pakistan has barely recovered from a series of economic crises. The rise in freelancers is also because of a decrease in employment opportunities within the country. On top of that, low wages have also forced people to find work elsewhere. But this has also created several issues regarding tax collection. The Pakistan IT Industry Association (P@SHA) fears that some full-time remote employees working for overseas companies are also being treated as freelancers, resulting in exceptionally low income tax (0.25 per cent, as it is for freelancers). The association highlights the growing trend of tax arbitrage, in which the tax system designed for independent gig workers, or freelancers, is being exploited by IT companies to reduce their tax liabilities. This, it says, deprives actual freelancers of opportunities and the facility.
We also have to be mindful of the growing freelance culture. Many young Pakistanis prefer to join the gig economy rather than the corporate world because of the freedom and flexibility it offers. Usually, companies around the world provide additional perks and benefits to their employees in addition to, their base salaries. Some get medical, others get regular provident fund contributions. Freelancers do not get this opportunity. Which means they also lack the job security that comes with a formal workplace. In Pakistan, most corporate entities are also flouting labour laws with only a handful thinking of employees’ wellbeing. That we have built a thriving community of freelancers is good, but if this has been created because of the deterioration of the corporate world, the government has a lot of thinking to do. Even with regard to freelancers, the authorities concerned need to find ways to include them in pension schemes. Awareness must be created among them about contributing to EOBI or related funds so they can receive a stipend post-retirement. Short-term gains should not divert the government from building a safe ecosystem for all workers.
