A few days after P@SHA retracted its budget tax proposal to close a 0.25 percent tax loophole, the Pakistan Freelancers Association (PAFLA) has warned the federal government to avoid any abrupt tax or regulatory changes affecting freelancers as they will damage Pakistan’s fast-growing dollar-export economy.
In a statement ahead of upcoming budget discussions, PAFLA said Pakistan’s freelance and remote work community has become a major source of foreign exchange, bringing in close to $900 million in the first nine months of the current fiscal year.
The association expects the sector to surpass $1 billion in annual earnings for IT and digital services exports.
PAFLA highlighted that this growth has been achieved over several years through improved banking access, policy engagement, awareness initiatives, and ecosystem development involving both public and private stakeholders, including government institutions and industry partners.
The association noted that freelance earnings have risen sharply in recent years, up from an estimated $450 million in 2022, reflecting strong expansion in Pakistan’s global remote workforce.
While acknowledging ongoing discussions around taxation and classification of remote workers, PAFLA warned that introducing complex or heavy compliance measures without proper infrastructure could push freelancers toward informal channels and reduce documented foreign exchange inflows.
It warned that excessive regulatory pressure could weaken trust in banking systems, encourage talent migration, and slow down Pakistan’s momentum in digital exports.
PAFLA stressed that the freelancer economy is a key pillar of Pakistan’s emerging digital sector and called for broad consultation with stakeholders, including the Ministry of Finance, the Ministry of IT, and the Federal Board of Revenue, before implementing any new framework.
The association said the priority should be to protect foreign exchange earners and preserve the growth of Pakistan’s digital economy, which is critical for youth employment and long-term economic stability.
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یہاں تو موبائل کمپنیز نے نیٹ ہی استطاعت سے باہر کردیا ہے۔
اور جو تھوڑا بہت بیلنس ہوتا ہے وہ خود ہی فالتو سروسز لگا کے ختم کر دیتے ہیں۔
ایسے ہی تھوڑی موبائل کمپنیز، بینکس، بجلی، گیس کے ادارے پرافٹ میں جا رہے۔ جبکہ سروس بھی خراب دیتے ہیں۔
Remote job walon ko kaun si facilities di gai hain jo un per tax lagaya ja rha hai? Freelancers ki terha hi treat kiya jatay unhain bhi.
After the news freelancers started setting up accounts to keep their hard earned abroad and stared shifting to alternative methods.