Writer: Amna Hassan (SESA Leader)
A quiet revolution is occurring in Pakistan. Rather than occurring in battlefields or legislatively in parliament, the revolution is taking place through screens, using code and the creative energy exercised by millions of young people in Pakistan. The gig economy, as represented by freelancers, content creators, gamers, animators, and digital entrepreneurs, has emerged as a leading opportunity for youth employment and economic development. The state has recognized this potential and is now taking steps to empower the new generation of creators.
A Digital Workforce on the Rise
The figures tell the whole story about the income generated by Pakistani freelance workers during the period July-May of the financial Year 2025/26; the total amount earned exceeded US$1,060,000,000 and was greater than (over) that mark for the first time ever! The total contribution of freelance work to total Pakistan IT exports was 25% of all exports! That has increased by 49.7 % from a year ago! Total Pakistan IT Export Value was US$4,000,000 for this same period; if we include non-IT freelance services (i.e., writers, designers, etc.), then total Foreign Exchange Earnings (from Freelancing) during this time frame approached US$1,600 million.
It is estimated that approximately three million individuals in Pakistan are freelancers, ranking it as one of the top freelance markets in the world. As noted by the Pakistan Economic Survey 2025-26, this tremendous increase can be attributed to an increase in digital opportunity, better access to new technologies, and an increase in young Pakistani’s engaging in global online marketplaces.
Government Initiatives: Building the Ecosystem
Pakistan has responded to the current situation with resolve and determination. The Government of Pakistan has initiated a number of initiatives to provide Pakistani youth with the resources needed to succeed in a digital economy, including skills development, digital infrastructure, and financial assistance.
The comprehensive Digi-Skills Digital Skills Training Programme has provided over 5.14 million digital skills training sessions between July 2021 and March 2022, making it one of the largest digital skills initiatives in the country. Through the Digi-Skills programme, freelancers in the finance and creative fields trained through the programme have generated approximately $1.65 billion in revenue. This demonstrates the considerable economic benefits of the programme, but also highlights the contribution to foreign exchange inflows to Pakistan. Digi-Skills currently provides training in a range of digital skills, including freelance consulting, digital marketing, graphic design, website design, search engine optimization, e-commerce, content creation, virtual assistance, and numerous other technology-based occupations.
The Prime Minister’s Youth Program (PMYP) has agreed to join forces with an exciting new online platform called Destinations, which will prepare young people to take advantage of both the gig economy and the $3 Trillion halal marketplace. The joint effort will promote content creation, entrepreneurship, and building halal businesses by providing youth access to AI-based tools that will assist them in joining the digital economy.
The CEGA (Centre of Excellence in Gaming & Animation) is a significant investment totaling Rs 2.52 billion aimed at supporting the growth of Pakistan’s creative technologies. During its five-year operating period, CEGA will support the incubation of 200 startup companies and create training opportunities for 10,000 of Pakistan’s youth. The gaming & animation industry already generates more than $170 million in revenues and employs over 8,000 people in Pakistan.
The NCSP, which is a program implemented by the Pakistan Software Export Board, will ultimately result in the creation of 250 state-of-the-art co-working centers throughout Pakistan by February 2027. The government has also provided interest-free loans of up to 10,000,000 through partners who use their bank accounts and have resources that help them to grow their business as a result of this program.
The level of digital infrastructure development continues to receive a high level of focus. There was an average of $509 million in broadband penetration within the past 2 months; an increase in total broadband penetration to 64.2%, and the number of cell towers that have now been constructed has increased to 92% of the population within the last year, since October 2023. Finally, the national assembly passed legislation allowing companies to provide free access to lay fiber optic cables within government-owned properties. Wi-Fi 7 has been approved by the PTA and will be implemented by the end of 2023, thus allowing Pakistan to continue its position as one of the top adopters in the Asia Pacific region of next-generation technology.
Challenges and the Path Forward
Similarly, there are certain concerns within the emerging sector of the gig economy that must be addressed by appropriate policies in the future. There have been expert calls for stable high-speed internet connectivity and reliable electricity supply because of their significance in the development of efficient digital infrastructure for the continued growth. In addition to this, the Chairman of Pakistan Freelancers Association, Ibrahim Amin, has stated that international platforms and payment service providers can deduct up to 25 percent to 30 percent commission from the freelancer’s earnings.
It was also stated by some industry members that there might be cases where the increase in the earnings of freelancers could be due to the conversion of employees into freelancers to gain tax advantages. This needs to be investigated to ensure fairness towards the genuine freelancers. The efforts to do so have already started as there were meetings organized by the Finance Minister of Pakistan with the Prime Minister’s Committee on IT Export Remittances.
However, the smart move on the part of the government has been the retention of the FTR of 0.25% for self-employed individuals, acknowledging the fact that most of these people already have numerous deductions. Nevertheless, as has been rightly observed by Dr Munawar Javed Ahmad, an AI Integration Researcher, the future will require the use of AI skills, which poses an opportunity to take advantage of.
A Bright Digital Future
Pakistani gig economy is no longer simply an economic opportunity; rather, it is a reflection of the strength, creativity, and determination of the youth of the nation. The state has shown its resolve by making large investments in skill development, digital infrastructure, and finance. The outcome can be witnessed from billion-dollar export earnings, millions of youth trained, and increased international reach of the country.
Prime Minister Shehbaz Sharif has envisioned a bold objective for the nation, which is to earn $30 billion through IT exports in the upcoming years. The nation is close to achieving the vision with almost three million freelancers, expanding digital infrastructure, and the government is aware of the importance of the digital economy.
The youth of Pakistan are the key players of its digital era. Gig economy provides them an avenue for dignified living, prosperity, and international recognition. The runway for the new era has been constructed by the state. It is now time for a new generation to take flight.
