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Pakistan’s ambitious National Freelancing Policy, drafted in 2023 by the Ministry of Information Technology and Telecommunication, remains pending cabinet approval despite the country ranking among the world’s top five freelancing nations and generating record foreign exchange earnings. The delay has stalled a comprehensive initiative designed to provide legal recognition, tax incentives, and banking facilitation for over 2.3 million Pakistani freelancers.
The stakes are substantial. Freelance remittances surged to $779 million in fiscal year 2024-25, a 90% increase from the previous year, contributing to Pakistan’s record IT exports of $3.8 billion. Without the policy’s implementation, Pakistan risks losing a competitive advantage as regional competitors strengthen their digital frameworks.
What the Policy Promises
The pending National Freelancing Facilitation Policy proposes transformative measures, including an income tax exemption until 2030 for registered freelancers, a reduced sales tax of 2% on local services revenue, and 35% foreign exchange retention in dedicated accounts.
The policy also mandates establishing technology-enabled banking branches in six major cities, providing collateral-free loans up to Rs. 1 million, subsidized home loans for qualifying freelancers, and comprehensive health and life insurance programs. Critically, it seeks to streamline international payment infrastructure through the Pakistan Software Export Board (PSEB) and the State Bank of Pakistan collaboration.
Registered freelancers would access subsidized training, certifications, office space at Software Technology Parks, and visa facilitation for those meeting minimum remittance thresholds. PSEB registration would cost only Rs. 1,000 with annual renewal at Rs. 3,500.
The Cost of Bureaucratic Delay
Industry experts warn that every month without formal policy implementation represents missed opportunities. Pakistan’s freelancing community currently operates without consistent regulatory frameworks, facing payment delays, limited access to financial instruments, and a lack of government support despite generating billions in foreign exchange.
Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja has committed to achieving $5 billion in IT exports by fiscal year 2026 and $15 billion by 2030. However, industry leaders emphasize that realizing these ambitious targets requires immediate policy implementation and institutional support.
Pakistan’s regional competitors are moving faster. India, with 15 million freelancers, and the Philippines, ranked as the second-fastest growing freelance market globally, maintain more comprehensive regulatory frameworks. Bangladesh generates over $100 million annually from approximately 650,000 freelancers with clearer compliance structures.
The Path Forward
Immediate cabinet approval of the National Freelancing Facilitation Policy is essential. Implementation must involve collaborative coordination between government agencies, the PSEB, and industry associations like the Pakistan Freelancers Association to ensure practical, freelancer-centric execution.
Pakistan’s 2.3 million freelancers have already demonstrated the sector’s viability and competitiveness. With formal policy support, Pakistan could legitimately position itself as a leading global freelancing destination and unlock the estimated $1 billion in annual earnings currently unrealized.
