ISLAMABAD: Pakistan’s freelance workforce generated $557 million in foreign exchange between July and December 2025, marking a 58 percent increase compared to the same period last year, according to official data.
The figures highlight the rapid expansion of Pakistan’s digital economy, with an estimated 2.37 million freelancers now offering services to international clients from cities including Karachi, Lahore, Peshawar, and Multan.
The country is currently ranked among the world’s top freelancing hubs, reflecting growing global demand for Pakistani tech talent.
Freelancers are providing a wide range of services, including software development, artificial intelligence data training, cloud infrastructure management, UI/UX design, and graphic design.
Industry experts say the quality and competitiveness of Pakistani professionals have enabled them to compete with established technology centers worldwide.
Policy reforms have contributed to the sector’s growth. The State Bank of Pakistan has allowed freelancers to retain up to 50 percent of their earnings in US dollars, a move aimed at encouraging formal remittances and reinvestment.
In addition, IT professionals registered with the Pakistan Software Export Board benefit from a reduced 0.25 percent withholding tax.
The Ministry of IT and Telecom, under Federal Minister Shaza Fatima Khawaja, has expanded broadband infrastructure and strengthened skills development initiatives such as DigiSkills.
Authorities have also facilitated improved digital payment mechanisms, including collaborations with blockchain-based platforms like Fasset.
Officials say the rise of freelancing is contributing to broader economic activity, particularly in smaller cities where skilled professionals can earn foreign income without relocating abroad.
Analysts describe the trend as a form of “virtual export,” helping reduce pressure on traditional job markets while boosting local spending.
The increase in freelance income has also supported overall IT sector performance. Pakistan’s total IT exports reached $2.61 billion in the first seven months of FY26, with January alone accounting for $374 million.
If momentum continues, freelance earnings could exceed $1 billion by the end of the fiscal year, potentially lifting overall IT exports to $4.5 billion.
Under the government’s “Uraan Pakistan” initiative, authorities are targeting $10 billion in IT exports by FY29.
Experts say achieving that goal will require continued investment in high-speed internet, advanced training in artificial intelligence, machine learning, and cybersecurity, and stable regulatory support for the digital marketplace.
With millions engaged in cross-border digital services, Pakistan’s freelancers are increasingly seen as a key pillar of the country’s foreign exchange earnings and long-term economic resilience.
