Rise in freelancers’ earnings

EDITORIAL: State Bank of Pakistan has quantified the computer and IT freelancers’ earnings at 856 million dollars in just nine months. In March alone, at a time when one would have assumed that the services provided by the freelancers to the Gulf countries were negatively impacted due to the US-Israel war against Iran, earnings registered a 21 percent increase compared to March last year and a 13 percent increase compared to February 2026. IT exports after adjusting for imports were 360 million dollars in March 2026, reflecting a 16 percent annual increase. Two observations are critical. First, the annual percentage rise in IT export revenue and in net earnings was higher than in the traditional sectors during this period notably textile and products, carpets, and surgical goods that remain hostage to higher input costs including cost of borrowing, higher taxes and higher utility rates compared to their regional competitors. It is relevant to note that members of the Pakistan Business Council recently outlined major factors that continue to impede their activities: “Pakistan’s economic difficulties stem from a combination of fiscal imbalances, a narrow tax base, weak export competitiveness and persistent policy uncertainty. .. and high taxation on the formal sector, coupled with a large undocumented economy, has created an uneven playing field where compliant businesses bear a disproportionate heavy burden. ” While it was the pandemic with its associated lockdown that compelled many around the world to not only communicate but also continue business activity through the IT sector yet in the current scenario where transport is severely affected in the Gulf countries Pakistan’s enhanced freelancers’ earnings indicates that this particular activity is thriving. Secondly, and equally pertinently foreign exchange earnings from freelancers may well presage a change in the source of the country’s income due to technological changes in communication. The change may be as momentous as during the time railways displaced horse-drawn carriages in the West, leading to job losses in one subsector and a more than a commensurate rise in employment opportunities in another though the latter required training. At the present moment in time freelancers are limited to the educated youth, belonging largely to lower to middle income groups; however, one would hope that the government takes cognizance of the tremendous potential of this sector and launches policies that are specifically designed to train people from across the income divide. To conclude, technological advancements do change existing demand for an old product to be replaced by a new one and in this context Pakistan must take advantage and implement policies that are supportive of this – policies which may require a revisit to rules and regulations pertaining to the periodic closure of internet. Copyright Business Recorder, 2026

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