The Pakistan Freelancers Association (PAFLA) has called on the Federal Board of Revenue (FBR) and the Ministry of Finance to ensure continued policy support for freelancers and the wider digital workforce in the Federal Budget 2026–27.
The association recommended maintaining the 0.25% tax rate on foreign exchange earnings for the next decade, alongside targeted measures such as expanded capacity-building programmes, development of freelancing hubs in major cities, and subsidies for internationally recognized professional certifications.
PAFLA Chairman Ibrahim Amin said a stable and predictable tax regime would encourage freelancers to route more of their income through formal banking channels and help widen participation in freelancing among students, young professionals, and women.
He noted that registered freelancers under the Pakistan Software Export Board (PSEB) currently benefit from the reduced tax rate, and said efforts are underway to simplify the registration process so more individuals can access the scheme. He added that consistent tax policy would strengthen the broader IT and software services ecosystem.
Referring to International Labour Organization (ILO) recognition of Pakistan as a major global supplier of digital labour, he said the country’s freelance sector is gaining international traction.
Data from the State Bank of Pakistan shows freelancing export earnings reached $959 million during July–April FY2025–26, up 49% year-on-year.
PAFLA President and CEO Dr. Imran Batada said the government should avoid introducing additional tax burdens on content creators producing educational, informational, and skills-based digital content, including training, news analysis, and infotainment.
He cautioned that complex or unclear taxation structures could push digital workers toward informal channels, reducing documented inflows and weakening foreign exchange earnings.
He also urged investment in modern payment infrastructure, including a globally integrated national payment gateway to facilitate smoother international transactions for freelancers and IT exporters.
Dr. Batada added that freelancers have contributed nearly $1 billion in foreign exchange earnings this fiscal year, describing them as a rapidly growing segment of Pakistan’s digital economy.
