In the wake of the COVID-19 pandemic, there has been a significant rise in freelance work.....
CAREER
In the wake of the COVID-19 pandemic, there has been a significant rise in freelance work. More and more people are choosing to work from home due to changes in society and technology. The pandemic has played a major role in this shift, introducing new working methods and making it the new normal.
Interestingly, the number of freelancers worldwide has surpassed 1.5 billion, making it a rapidly growing industry. On average, freelancers earn $21 per hour worldwide. It’s worth noting that most freelancers have postgraduate education, and almost 70 percent are under 35 years old. Additionally, the number of freelancers with only a high school diploma or less has decreased. According to the World Bank, almost half of all workers worldwide are self-employed.
Pakistan has emerged as a significant player in the global freelancing industry, ranking fourth in the top ten countries for freelancers, according to the Payoneer 2019 report. Furthermore, Pakistan’s freelancing industry grew by 48 percent in 2021–2022, earning $400 million for freelancers. The country’s remittance inflows increased by 2.74 percent, reaching $397.328 million in 2022. With around 3 million freelancers in 2022, the industry is expected to grow and contribute significantly to the country’s economy.
Freelancing comes with a lot of challenges in Pakistan. These include limited Internet access and digital devices which hinder freelance job security. Pakistani freelancers often work on devices lagging in the global freelance market. Legal and regulatory issues include a lack of rights protection and unclear taxation and financial obligations. Investment in training programs, improved technology access, and supportive legal frameworks are needed. Government collaboration with private sector organizations is recommended to promote freelancing and provide resources.
Freelancing is a primary income source for many, contributing to the economy. Pakistan’s government can provide initiative quotas in different organizations for people who are engaged in freelancing and promote the gig economy. The government has launched initiatives to support the freelancing industry, including the Pakistan Freelancers Academy, the Digital Pakistan initiative, and a dedicated task force. These initiatives provide training, mentorship, and networking opportunities for freelancers; promote digitalization; and offer digital services like high-speed internet, e-commerce platforms, and payment systems. Tax incentives, such as tax exemptions and reduced rates, further support the industry and can help freelancers grow their businesses.
