Daily Times

Pakistan is a developing country with a population of over 220 million. The agriculture sector is the backbone of Pakistan’s economy, contributing about 20% to its GDP. The country is known for its production of cotton, rice, sugarcane, and fruits. However, this sector is often affected by natural disasters such as floods and droughts, which can have a negative impact on the economy.

The industrial sector is another important contributor to Pakistan’s GDP, accounting for around 25%. The country has a growing textile industry, as well as a significant number of small and medium-sized enterprises that produce goods such as leather goods, surgical instruments, and sports goods. However, the industrial sector also faces challenges, including a lack of access to electricity and a shortage of skilled labour.

The services sector is the largest contributor to Pakistan’s GDP, accounting for around 55%. This sector includes information technology, finance, transportation, and telecommunications. The country has a rapidly growing telecommunications industry, with an increasing number of mobile phone users and internet subscribers.

The country’s economy has been through its fair share of ups and downs over the years but has been showing signs of collapse in recent times. One of the main challenges is the country’s high budget deficit, which has been caused by a combination of factors such as low tax revenues, high government spending, and a large trade deficit. According to the FBR, the country’s tax regulatory authority, in the fiscal year 2022, the tax-to-GDP ratio in Pakistan was around 9.5%. This is lower than the average for countries in South Asia, which is around 13%. The country also has a high level of inflation, which has been driven by rising food and energy prices due to internal as well as external factors.

The government can establish a freelancing hub or a one-stop shop for freelancers to access resources.

Right now, it is facing a shortage of foreign exchange reserves, which has made it difficult for Pakistan to finance its import needs and pay off its external debt. This has led to a depreciation of the Pakistani rupee against the US dollar. In lieu of the struggling environment, the dollar is being smuggled through Physical means, Under-invoicing and the Hawala system. Increasing imports are adding insult to injury.

One of the main issues is the country’s large trade deficit due to high imports. Imports are increasing due to the growing middle class, which has led to an increase in demand for consumer goods such as cars, electronics, and clothing. This has resulted in a large increase in imports of these goods, which has contributed to the trade deficit. Another factor contributing to high imports is the decline in exports from Pakistan. The country’s exports have been negatively affected by a number of factors, including a lack of access to export markets, poor infrastructure, and a lack of competitiveness in the global market. In the fiscal year 2022, Pakistan’s trade deficit increased due to a significant increase in imports, which was driven by rising oil prices and strong demand for consumer goods. The country’s imports in 2022 totaled around $80 billion, while its exports were around $31 billion. The major contributor to the trade deficit was the high cost of oil imports, which accounted for more than 20% of the total imports.

Pakistan has also been trying to increase its exports to help boost its economy. The country has a large potential market in the Middle East, and Europe (in terms of textile export) as well as in China and other countries in the region. Apart from diplomacy to negotiate free trade agreements (FTAs) with the countries to help increase exports, the government of Pakistan should focus on increasing startup and IT exports. As can be seen in the example of India how it has expanded its IT exports. India’s IT industry is now one of the largest in the world, with the country accounting for around 60% of the global market for IT services. It has also made significant investments in STEM education, which has helped to create a highly skilled workforce. The Indian government has been promoting the development of the semiconductor industry through initiatives such as the National Policy on Electronics and the Modified Special Incentive Package Scheme (MSIPS). Which attracts foreign investment in the sector, with companies such as Samsung, Intel, and Texas Instruments setting up operations in India. Moreover, India has one of the fastest-growing startup ecosystems in the world and is considered the third-largest startup ecosystem globally, after the United States and China.

To address these issues, the different governments of Pakistan have implemented a number of measures to try to reduce imports and increase exports. These measures include implementing import tariffs and other trade barriers. A number of economic reforms, including tax reforms, energy sector reforms, and measures to improve the business environment. The government has also been working to increase exports and attract foreign investment. But, no substantial results have been seen as the country’s reserves are declining.

Pakistan should focus on the untapped sectors and incentivize the sectors that can boost exports and hence the economy. The shift from energy subsidies, which had been a major drain on the country’s finances, to investment in IT, startups, and innovation can only be the way forward. The world is digitalizing and moving toward IT. Freelancing can be a viable option for Pakistan to boost its economy by providing more opportunities for self-employment and earning foreign currency. The government can invest in developing the IT infrastructure and providing access to high-speed internet in order to support freelancers and entrepreneurs in the IT and software development sectors. The government can provide training and education programs to help individuals acquire the skills they need to succeed as freelancers, such as digital marketing, graphic design and programming. The government can provide financial assistance and resources to help small businesses and entrepreneurs, including freelancers, to start and grow their businesses. The government can create a more favourable business environment to attract foreign investment in the freelancing sector, by providing tax incentives and simplifying regulations. The government can Foster a culture of entrepreneurship, encouraging a culture of entrepreneurship and self-employment by promoting the benefits of freelancing and providing support and resources to help individuals start their own businesses. The government can establish a freelancing hub or a one-stop shop for freelancers, entrepreneurs, and small businesses to access resources, training, and networking opportunities. The government can develop a legal and regulatory framework that protects the rights of freelancers, establishes clear guidelines for freelancing, and resolves disputes.

It’s worth noting that freelancing can be a great way to provide employment opportunities and support economic growth, especially in a country like Pakistan where the unemployment rate is high. By promoting freelancing, the government can help to reduce unemployment and increase the country’s foreign currency earnings.

The writer is a freelance columnist.