The government of Pakistan has announced a new policy to support freelancers in Pakistan.
The aim is to boost the position of Pakistan as a leading global freelance market.
Freelancers with two years of IT export remittances exceeding $5,000 will be granted visa facilitation.
The Ministry of Information Technology and Telecommunication (MoITT) has announced a new policy, ‘National Freelancing Policy,’ which offers a reduced sales tax of up to 2% to freelancers officially registered with the Pakistan Software Export Board (PESB).
Launching the policy aims to bring Pakistan a leading global freelance market and increase the country’s foreign exchange earnings.
In collaboration, PESB and the State Bank of Pakistan are working to streamline the inward foreign exchange remittance process for freelancers in Pakistan. The SBP will generate a freelancing-defined code eligible for income tax exemption.
However, PESB and SBP are working together to enable registered Freelancers to open foreign exchange bank accounts. This is a golden opportunity for freelancers to easily manage their foreign exchange earnings.
The National Freelancing Policy aims to support the growth of the freelance industry and boost the financial sector of Pakistan through foreign exchange. It will create a conducive environment for freelancers; the objective is to increase the country’s digital economy and intensify the freelance market position in the global freelance market.
Moreover, SBP will allow freelancers to retain 35% of their foreign exchange income in associated foreign exchange business accounts. PESB will join hands with FBR and MoF to ensure tax exemption for foreign exchange export remittances received under Freelancing codes until 2030.
Not only this, Pakistan has taken a strong step to boost the freelance industry and freelancers. According to the policy, visa facilitation will also be given to those with at least two years of IT and ITeS export remittances exceeding US $5,000 annually through formal banking channels.
This will provide freelancers an opportunity and make the visa process easier for freelancers, acknowledging their valuable contribution to the report IT services.In addition, registered Freelancers will also get multiple opportunities, such as subsidized home loan schemes, provided they can explain a minimum of five years of Freelancing export remittances costing more than $12,000 annually. The new system will help freelancers to grab securing an affordable housing scheme.
The policy focuses on enhancing access to international markets, projects, and clients and providing growth opportunities to freelancers. To achieve this, a promotional plan and robust marketing strategy have been prepared to showcase freelancers’ skills and capabilities on a global scale.
According to the policy, the PESB will offer a fantastic opportunity to register for Rs 1,000 and renew their registration annually for only Rs 3,500/-. This will enable freelancers to access various PSEB programs and initiatives, including free and subsidized training, certifications, and subsidized office space at Software Technology Parks (STP) roos the country. It will also provide access to international marketing and matchmaking opportunities.
The government’s measures will create a supportive environment for freelancers in Pakistan, offering them multiple incentives and resources to thrive in the freelance industry. They will help to grow the country s digital economy.
Moreover, PESB, in collaboration with other government sectors, provides visa facilitation to freelancers with a record of ITeS export remittance of over $5,000 annually through formal banking channels.
Banks are requested to open technology business branches in six major cities where technology-aware bank staff can help freelancers.
Offer an income tax holiday to registered Freelancers till 2030 on export income, revenue, or receipts of freelancers.
PESB to establish a freelance desk for freelancers to go and get any information regarding their concerns, such as taxation, banking, intellectual property rights (IP), voice-over IP VPN access, or any information related to commercial matters. However, PSEB, in collaboration with government officials, will work on providing subsidized life insurance, health insurance, and employee liability insurance to registered Freelancers through existing and future initiatives and subsidies.
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