hen Taha pulls out of his driveway in Karachi, he is not simply heading to work. He is navigating the coalface of one of the most consequential shifts in Pakistan’s economic life, a quiet revolution unfolding through smart-phones, algorithms and the steady hum of motorbikes criss-crossing the city.

Pakistan’s gig economy has expanded at a pace that has surprised even its advocates. According to the Pakistan Labour Force Survey 2024-25, online gig work now accounts for 2.9 percent of the total employment in the country. The figure sounds modest until measured against the scale of Pakistan’s workforce.

Of those engaged in platform-based work, the overwhelming majority, 97.1 percent, are in physical services: ride-hailing, courier runs, freight and delivery. Only a sliver - 2.9 percent - work in fully digital, remote roles.

That imbalance tells a story. Pakistan has a gig economy heavily anchored in the physical world, even as the digital frontier beckons.

Taha found the platform after months of struggling to find steady employment. The ability to set his own hours and negotiate fares directly with passengers gave him a foothold he had not found elsewhere. “I like that I can decide which ride to take and what fare works for me,” he said. “I feel like I am running my own business. A good day on the road means I can provide better for my family.”

He drives for inDrive, one of several ride-hailing platforms operating in Pakistan’s major cities. Unlike systems where fares are set algorithmically, inDrive allows drivers and riders to negotiate and agree on a price, a model the company describes as ‘people-first.’ Drivers can also choose their routes, accept or decline trips and set their working hours. For many, that autonomy distinguishes gig work from the rigid structures of formal employment.

Bilal, a courier, says his income stabilised after he joined the platform’s delivery service. “Before this, my income had been uncertain. Now I can pick up deliveries throughout the day and see my earnings grow by the trip.” Imran, who recently began grocery deliveries, describes the newer vertical as a lifeline. “Grocery deliveries are increasing every day. Since my father passed away, I carry the responsibility of supporting my family. Opportunities like this are important for me.”

But the significance of Pakistan’s gig economy extends far beyond urban ride-hailing. Geopolitical turbulence in the Middle East, employing millions of Pakistani workers, has sharpened the urgency of building domestic and digital income alternatives. With Gulf employment volatile and remittances under pressure, policymakers and economists are increasingly looking at freelancing and digital services as a strategic buffer.

Noman Ahmed Said, a freelance coach, argues that the timing could hardly be more consequential. “The global economy is undergoing a fundamental shift where work is no longer tied to geography but to skills,” he says. “The rise of the gig economy, driven by remote work, economic pressures and geopolitical disruptions, is reshaping how companies hire and individuals earn their wages.”

He points to a structural opportunity: Western economies facing inflation and uncertainty are outsourcing more work to emerging markets. Many organisations are diversifying their talent pools across countries to reduce geopolitical exposure. Pakistan, he argues, sits at an advantageous intersection. The country already ranks among the world’s top freelancing nations, with more than two million freelancers contributing to digital exports.

“Freelancing is not only generating foreign exchange but also providing higher incomes than traditional entry-level jobs,” Said says.

The gig economy will not, by itself, resolve Pakistan’s structural challenges. But in a period of regional instability, energy constraints and sluggish formal job creation, it offers something valuable: a pathway to income that requires little capital, no factory and no visa.

Yet Pakistan is, by his assessment, underperforming its potential. Most freelancers work individually rather than scaling into agencies or structured service businesses. Payment infrastructure remains patchy, with international gateways limited and inconsistent. Internet reliability is a persistent constraint across large parts of the country. Policy support for the digital services sector has been ad hoc at best.

The energy equation adds another dimension. As regional tensions disrupt oil supply chains and push energy costs higher globally, Pakistan’s ability to deliver knowledge work and digital services, sectors with a comparatively low energy footprint, becomes a quiet competitive advantage. A country that cannot guarantee uninterrupted industrial output can still run a call centre, produce a software module or manage a global client’s social media presence. The gig economy, in this reading, is not just an employment safety valve; it is a resilience strategy.

Muhammad Zohaib Khan, former chairman of the Pakistan Software Houses Association (P@SHA), sees the regional context as an opening rather than a threat. “Due to regional issues, Pakistan currently has a massive opportunity to emerge as the safest regional IT hub,” he says. He points to the ITCN Asia technology exhibition in Karachi this September as a sign of growing global interest. “Everyone seeks a country that offers stability and where the top leadership demonstrates seriousness toward its people, business and economy.”

Khan is emphatic, however, that the gig economy’s future will be defined by how quickly its participants adopt artificial intelligence. “Because of AI, the freelancing community and Pakistan’s gig economy will benefit immensely, the sooner they adopt AI tools and technologies.” For those who do not adapt, he warns, the outlook is stark. “If freelancers do not embrace AI tools, it will become very difficult for them to survive.”

Said agrees with that assessment. The next wave of demand, he argues, will not be for basic digital tasks but for high-value specialisations such as artificial intelligence, cybersecurity, data analytics and strategic consulting. Low-skill work will be automated. The freelancers who thrive will be those who evolve into digital entrepreneurs, building teams and global service companies rather than operating alone.

“The harsh reality is that traditional job creation will not keep pace with Pakistan’s growing youth population,” Said adds. “The solution lies in shifting from a mindset of job seekers to income creators.”

For that shift to happen at scale, policy must follow ambition. His prescription includes enabling seamless international payment systems, investing in high-speed internet infrastructure, offering tax incentives for digital exports and launching structured training and certification programmes. Khan adds that the arrival of 5G in Pakistan represents a critical enabler, one that, combined with a deliberate national strategy, could position the country as a serious regional technology destination.

Back on the streets of Karachi, Taha does not frame his work in terms of macro-economics or geopolitical hedges. He thinks about the next ride, the next fare negotiation and the school fees due at the end of the month. But in aggregate, thousands of choices like his are assembling a new economic layer that Pakistan’s planners are only beginning to understand.

The gig economy will not, by itself, resolve Pakistan’s structural challenges. But in a period of regional instability, energy constraints and sluggish formal job creation, it offers something valuable: a pathway to income that requires little capital, no factory and no visa.

Whether Pakistan converts that opening into lasting economic strength depends on decisions being made now, in policy offices and at skills training centres.

The writer is a staff member.