Genius lies in seeing opportunity in crisis. This is why in the Mandarin language, the word “crisis” is composed of two characters, one representing danger (Wei) and the other, changing point (Ji). The Pak Rupee has touched a new low, reaching parity of 200 with the United States Dollar. While the falling value of the rupee and higher fuel prices will lead to hyperinflation, there is also an opportunity hidden in this crisis. This is only if our leadership gets its act together.
Middle-class Pakistanis are now feeling the crunch. Fuel prices are making the commute to work too expensive hence bike ride-sharing is the new trend and carpools are being formed. Single-income families are now finding it hard to make ends meet. This is the opportune moment to encourage the global digital economy.
Dr Atta-ur-Rehman’s reform in higher education and the overall change brought about in society during the Musharraf era, through the media and social media, has created a large pool of professionally educated men and women, with degrees in globally relevant fields. Many of these female graduates are now out of the workforce as they are young mothers looking after children. Since women are not primary providers, these women have small amounts of savings and they are keen to find opportunities to invest them for some extra monthly income. Older widows and retired men also have small savings, and everyone can benefit from some extra income.
This group of small savings holders collectively owns a considerable sum of money, which can be pooled and redirected to encourage economic growth in Pakistan during a slowdown of the global economy.
Many white-collar jobs previously performed by employees inside the office premises are now being outsourced to freelancers and gig workers around the globe.
The global freelance economy will only grow because, in the capitalist model of business, capital flows towards the least cost of production. The industrial manufacturing sector of the US shifted to Asia, beginning in 1980, as the cost of production was dramatically low. With outsourced manufacturing, the US turned into a service-based economy, where retail businesses hire temporary workers. Big businesses such as Walmart, Amazon, KFC, Taco Bell and others hire temporary workers to avoid giving costly employee benefits such as healthcare. The next phase is digitally outsourcing technical work which can be performed remotely. This increases profits by additionally cutting down overheads, which are still incurred with a temporary workforce.
Many white-collar jobs previously performed by employees inside the office premises are now being outsourced to freelancers and gig workers around the globe. These people work for US corporations, from their homes in Pakistan, Bangladesh India, Ukraine, Philippines etc.
The five most common fields for freelance or gig work with mid-level technical skills are Content writing (blog writers, medical writers and book/ghostwriting); Translation; Office and Customer support services (bookkeepers, social media managers, administrative assistants and customer service); Mental Health Support Services (social worker, therapist and psychologist and wellness coach); and Home design and Renovation Services (interior design, architecture and home design).
Technology and finance/business operations are the top two occupations for highly skilled freelancers. The most high-paying freelance skills of today are direct response copywriting, ad management, SEO consulting, software development, lead generation and sales. People with expertise in artificial intelligence can name their price.
The global economy and the global academia are now increasingly digital. Currently, at 58 million and counting, freelancing is poised to become the US majority workforce by 2027. Contributing over $1.4 trillion to the US economy, the steady increase in the number of skilled individuals taking up freelancing every year has made freelancers the favourite to become the US majority workforce within the next few years.
As of March 2019, Google’s workforce comprised 120,000 contractors/freelancers, more than the 102,000 permanent employees on its payroll.
India, Bangladesh and Pakistan -in that order – rank in the Top 10 countries with the fastest-growing earnings for freelancers, mainly due to the English language being the moral surplus of colonialism. Ukraine and the Philippines are the other two major players catering to this market.
The freelancing economy is still dominated by young Indian freelancers between 18-34, about 57 per cent of whom find work through Fiver and UPwork. In 2022, Indian women are earning 81 per cent of what their male counterparts do with their average hourly rates of $22 per hour compared to men’s hourly rate of $ 27.
With the Pakistani Rupee at an all-time low, Pakistan can claim the top spot to replace India, if the state gives patronage to this sector. Skilled Pakistanis only need to offer a lower rate between $ 18-20 per hour to get more business.
This is where the small savings holders come into play. These people presently hold their small savings in US Dollars or gold coins to hedge against currency devaluation. Their savings are outside of the financial system, as most do not wish to earn usury. This money only needs a religiously permissible and financially safe option to be invested.
On the other hand, many freelancers lack the resources to buy the laptop needed to find gig work and also the guidance on how to build their skills and market themselves to get business.
The state can provide the guidance and also procure laptops and other equipment needed for the job, by arranging for duty-free bulk imports of new laptops at low cost.
These purchases can be financed by the holder of the small savings turning into an investor in the digital economy. Thus the financing of equipment and relevant training can be managed without the government needing to increase circular debt.
The homemaker with 1 lac savings can lend it to the unemployed graduate for him to acquire the skills and to purchase a laptop. The state will be the guarantor of the transaction and there must be strict penalties for default and fraud. The freelancer can slowly return the loan and also pay a small profit from his earnings to his investor. Both can bring in precious foreign exchange by pooling their resources, under state patronage.
Pakistan’s colonial past can be turned into a boon from a bane, by encashing our English language skills. We are also a smart and tech-savvy nation. Our media-savvy youth can be transformed from toxic memers and tick-tockers to valuable gig workers and techno-wizards energizing the economy.
Once the state turns its attention to this sector, new opportunities will also spring up. Western Academia, media, publishing houses, hospitals, libraries and all kinds of institutions, as well as individuals, can outsource work to Pakistan if the right strategy is devised and effectively executed. This would not only bring in the much-needed foreign exchange but it would also transform our work ethic and our work culture. The socio-economic transformation spurred by a digital economy can lead Pakistan to greatness.
The writer is an independent researcher, author and columnist. She can be reached at [email protected]