Pakistan’s freelancers and digital content creators are strongly opposing proposed tax measures in the upcoming federal budget. They believe such policies will hurt the fast-growing digital economy. Experts argue the focus should be on boosting foreign exchange earnings, not taxing struggling freelancers. They are urging the government to support digital workers who bring in millions of dollars each year despite facing power and internet disruptions.
Chairman of the Pakistan Freelancers Association (PAFLA), Ibrahim Amin, said the tax plan could discourage new creators. He believes only high-earning entertainment influencers should be taxed. He also asked the government to exempt educational and skill-based content creators. Amin pointed out that freelancers already pay taxes through each transaction and face heavy platform fees as well.
There are around 2.37 million freelancers in Pakistan, making it one of the largest freelance communities worldwide. According to Amin, this group earned $400 million in just nine months of FY25. He said if the number of freelancers is doubled, Pakistan could earn over $1 billion in foreign exchange. The sector, he added, has received both public and private support and now needs protection, not pressure.
Digital trainer and influencer Hisham Sarwar also criticized the tax proposal. He warned that copying the lifestyles of a few luxury vloggers to create tax policies will harm the entire industry. Sarwar suggested learning from Bangladesh, which gives tax breaks and incentives to freelancers. He added that AI adoption could further boost Pakistan’s IT services and exports if the environment remains friendly.
P@SHA’s Senior Vice Chairman Muhammad Umair Nizam called for long-term support of freelancers. He urged the government to extend the Final Tax Regime for 10 years and invest in skill development. According to the Pakistan Economic Survey 2024-25, IT exports reached $2.825 million and the sector recorded a $2.429 million trade surplus, showing its potential if properly supported.