The Pakistan Freelancers Association (PAFLA) has urged the Federal Board of Revenue and the Ministry of Finance to protect Pakistan's freelancing sector in the Federal Budget 2026-27. The association is calling for tax continuity, infrastructure investment, and expanded support for digital workers as freelance foreign exchange earnings approach $1 billion this fiscal year. #### What does PAFLA want from Budget 2026-27? PAFLA is asking the government to retain the 0.25 percent reduced tax rate on foreign exchange earnings for ten years, fund capacity-building programs, establish freelancing hubs across multiple cities, and subsidize internationally recognized certifications. The association also wants no new taxes on content creators and better payment infrastructure for digital workers. #### Why does the 0.25% tax rate matter for freelancers? PAFLA Chairman Ibrahim Amin said that extending the 0.25 percent tax regime would encourage freelancers to route their earnings through local banks. He added that a stable rate would inspire students, young professionals, and women to pursue freelancing as a long-term career. "A stable, simple tax regime benefits the entire digital economy, freelancers, software houses, and the broader IT industry alike," he said. Freelancers registered with the Pakistan Software Export Board already benefit from the 0.25 percent rate. PAFLA has expressed willingness to work with PSEB to simplify registration so more freelancers can access the incentive. The association sees streamlined onboarding as key to growing the documented freelance workforce. Chairman Amin also cited the International Labor Organization's recognition of Pakistan as one of the world's largest providers of digital labor. He described this as a reflection of the collective strength of Pakistan's tech ecosystem rather than individual achievement. #### How much are Pakistani freelancers earning in foreign exchange? According to the State Bank of Pakistan, freelancing export receipts reached $959 million between July and April of FY2025-26, a 49 percent increase from the same period the previous year. The figure places Pakistan's freelance sector close to generating $1 billion in a single fiscal year for the first time. Dr. Imran Batada, President and CEO of PAFLA, said this growth must be protected through sound policy. He warned that imposing new taxes on content creators producing knowledge-based content, including skills training, news and analysis, educational material, and infotainment, could slow that momentum. #### What risks does PAFLA warn against in the upcoming budget? Dr. Batada cautioned that complex tax classification systems could push digital workers toward informal payment channels, reducing documented remittances and weakening Pakistan's foreign exchange position. He argued that the consequences would extend beyond freelancers to affect the wider digital economy. He also called on the government to invest in a globally integrated national payment gateway. Such infrastructure, he said, would benefit all digital service providers operating across Pakistan, not just freelancers. "Pakistan's freelancers have contributed nearly $1 billion in foreign exchange this fiscal year. These are young Pakistanis from every corner of the country, competing globally and bringing dollars home. Together with the broader IT industry, they represent Pakistan's greatest economic opportunity," Dr. Batada said.

Pakistan's freelancers earned more than $950 million in foreign exchange during the first 10 months of the current fiscal year, according to the Pakistan Freelancers Association (PAFLA). State Bank of Pakistan data showed export receipts from computer and information services reached $959 million between July and April, up from $642 million in the same period a year earlier. ### How much did Pakistan freelancers earn this year? Pakistan freelancers generated $959 million in export receipts between July 2025 and April 2026, according to State Bank of Pakistan data. That marks a 49% increase, or $317 million more than the same period last year. The figures put the sector on course to cross the $1 billion mark before the fiscal year closes. ### What is driving the growth in Pakistan's freelance earnings? PAFLA president and CEO Imran Batada attributed the surge to growing participation on global platforms including Upwork and Fiverr, as well as increased activity across social media platforms. Awareness of freelancing has risen significantly in recent years, drawing more Pakistanis toward digital work. Online learning, private training institutions, government programs and NGO-led initiatives have all contributed to expanding the country's digital workforce. Pakistan's freelancing community now stands at an estimated 3 million people, according to Batada. He said continued growth would depend on closer collaboration among the government, banks and other stakeholders. Batada, who has trained more than 25,000 freelancers and received the Global CIO Award five times, called on Pakistani freelancers to keep upgrading their skills to stay competitive internationally. ### What skills are Pakistani freelancers being encouraged to develop? Batada specifically urged students and young professionals to focus on advanced artificial intelligence and soft skills. PAFLA has developed a strategy to hold online and in-person sessions across Pakistan covering emerging industry trends, business development and payment processes. These sessions are intended to prepare freelancers for the evolving demands of global clients. ### Which institutions have supported Pakistan's freelance sector? PAFLA credited the sector's progress to joint efforts by the Ministry of IT and Telecommunication, the Pakistan Software Export Board, the State Bank of Pakistan and the Special Investment Facilitation Council. These bodies have worked to improve infrastructure, ease payment access and expand training opportunities for freelancers. Pakistan is now approaching the $1 billion milestone in freelance export receipts, a target that PAFLA says reflects the sector's growing maturity.

Pakistan is full of inspiring entrepreneurial journeys. In this episode of Scaled, we explore the story of Ibrahim Amin, who began his career selling leather jackets and went on to build a thriving business empire. What started with just three employees has grown into a group of companies with over 300 staff and operations across Pakistan, the UAE, Singapore, and China. Today, his ventures — TriStar, Delson, and PAFLA — operate in sectors ranging from banking and IT to agriculture. In conversation with Nukta’s Sheraz Ahmed, Ibrahim Amin shares how he scaled his businesses, the challenges he faced along the way, and the decisions that helped turn a small trading venture into a global enterprise.

KARACHI: The Pakistan Freelancers’ Association (PAFLA) has planned an initiative to empower journali

KARACHI: The Pakistan Freelancers Association (PAFLA) and the National Incubation Center (NIC) Karachi have signed a Memorandum of Understanding (MoU) to jointly promote entrepreneurship and provide mentorship opportunities for freelancers and startups across the country. According to a statement released on Friday, the strategic partnership aims to empower young entrepreneurs with guidance, training, and resources to help them build sustainable businesses in the growing digital economy. Under the agreement, PAFLA and NIC Karachi will work together on initiatives including entrepreneurial boot camps, mentorship sessions, capacity-building workshops, and networking events designed to nurture innovation and business growth.