The Pakistan Freelancers Association (PAFLA) has urged the government to avoid introducing new taxes or complex regulations on freelancers in the upcoming budget, warning that such measures could negatively affect Pakistan’s foreign exchange inflows.
In a statement, PAFLA said Pakistan’s freelance and remote work community has grown into a key contributor to the country’s digital economy, generating close to $900 million in foreign exchange during the first nine months of the current fiscal year. The association expects total IT and digital export earnings from freelancers to cross $1 billion this year.
The group noted that this growth has been achieved over several years through improved banking access, policy engagement, and ecosystem development, with support from public and private stakeholders.
PAFLA highlighted that freelancer earnings were around $450 million in 2022, and have since increased significantly as Pakistan’s global remote workforce expanded.
While acknowledging the need for clearer tax classification and regulatory frameworks for remote workers, the association warned against imposing heavy or poorly structured compliance measures in the absence of proper systems.
It cautioned that such steps could push freelancers toward informal channels, reduce documented dollar inflows, weaken trust in banking systems, and encourage skilled workers to move abroad.
PAFLA said the freelancer sector is now a major source of foreign exchange and should be protected as part of Pakistan’s broader digital economy strategy. It called for consultation with relevant stakeholders, including the Ministry of Finance, Ministry of IT, and the Federal Board of Revenue, before any new framework is introduced.
