Pakistan's leap into the future: National Freelancing Facilitation Policy 2023
Monday 3 February 2025
Sahar Iqbal
Akhund Forbes, Karachi
sahar.iqbal@akhundforbes.com
Pakistan's Ministry of Information Technology and Telecommunication (MoITT) has drafted the National Freelancing Facilitation Policy 2023, a substantial initiative aimed at strengthening its digital economy.[1] The objective of this policy is to establish Pakistan as a prominent global centre for freelancing, thereby augmenting the average yearly income of freelancers and making a substantial contribution to the country's influx of export remittances.
Objective and scope
The policy aims to augment the quantity of active freelancers in Pakistan to one million, with the objective of elevating their average annual income to US$5,000. This has the potential to increase export remittance inflows by US$5bn, which is a significant increase compared to the present average earnings of approximately US$3,500 per year per active freelancer in Pakistan. This ambitious objective lays the foundation for Pakistan to position itself as a prominent facilitator in the worldwide freelancing industry.
Incentives and support
At the core of this policy are financial benefits for independent workers, such as a tax exemption on money earned from exporting goods or services until 2030, provided that the cash is received through official banking channels. This action aligns with global norms and seeks to optimise the financial processes of self-employed individuals.
In addition, the Pakistan Software Export Board (PSEB) plans to implement a registration fee package for freelancers, which will provide them with access to a range of support services. These offerings encompass complimentary and subsidised instruction, certificates, subsidised office accommodations at Software Technology Parks (STPs), and access to global marketing and matchmaking prospects.
Financial assistance
The proposal proposes offering interest-free loans up to PKR 1m to freelancers, without requiring any assets as security. This project aims to assist freelancers in expanding their operations and strengthening their competitive advantage in the worldwide market. Additionally, freelancers who establish a single-member company with the SECP are eligible for a 20 per cent discount on the registration price. This concession aims to alleviate the financial strain on aspiring entrepreneurs.
Insurance and home loan facilities
The policy offers extensive assistance by incorporating provisions for subsidised health and life insurance. Additionally, it includes eligibility for house loan schemes for freelancers who fulfil specific export remittance limits. This comprehensive approach not only tackles the current financial need but also ensures the long-term stability and security of freelancers.
Policy impact and economic growth
The policy is anticipated to bring about a significant and profound change in Pakistan's digital environment. By augmenting the quantity of freelancers and their remuneration, it will make a substantial contribution to the economic expansion of the nation. The policy aims to establish Pakistan as a prominent player in the global freelancing market, implementing a clear and accountable governance structure, and facilitating foreign market entry.
Moreover, the strategy seeks to narrow the divide and streamline communication between freelancers and regulatory authorities, fostering a conducive climate for business. The policy is poised to transform the freelancing industry in Pakistan by introducing features such as digital banking, e-payments and access to financial instruments.
Challenges and future prospects
Enacting such a lofty policy will inevitably face obstacles. The effectiveness of the policy will depend on the smooth implementation of fiscal incentives, efficient distribution of financial help and successful training programmes. Additionally, it will be crucial to address the digital gap and guarantee widespread accessibility to these services for freelancers nationwide.
In conclusion, Pakistan's implementation of the National Freelancing Facilitation Policy 2023 will demonstrate a strong commitment to embracing the digital revolution and establishing itself as a prominent participant in the global freelancing industry. It not only guarantees to improve the quality of life for numerous skilled freelancers but also to make a substantial contribution to the nation's digital economy. If implemented and supported effectively, this policy has the capacity to revolutionise Pakistan into a dominant force in freelancing, providing significant prospects for advancement and creativity in the era of digital technology.