Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin said the government must avoid creating an impression that a large number of content creators will be brought under the tax net, as this could discourage struggling freelancers and budding digital creators. However, he suggested that the Federal Board of Revenue (FBR) could consider taxing a select group of high-earning entertainment content creators with substantial followings and revenues. Amin urged the government to categorise content creators carefully, exempting those who provide educational content and skills training to millions of subscribers in Pakistan and abroad from any new tax burden.
He pointed out that both the public and private sectors have invested heavily in developing freelancers and digital creators, who have used these skills to support their families and attract much-needed foreign exchange into the country. Despite challenges such as frequent internet disruptions and electricity outages, freelancers' income surged to $400 million during the nine months of FY25, according to the latest Pakistan Economic Survey. Amin pointed out that most freelancers already pay taxes on every transaction and also bear deductions charged by freelancing platforms and payment gateways for transaction services.
Estimates suggest there are around 2.37 million freelancers in Pakistan, making it the fifth-largest freelance workforce globally.
"If we double the size of this community, annual foreign exchange inflows could exceed the $1 billion mark," said the PAFLA chief.
Hisham Sarwar, a social media influencer and a well-known digital skills and freelancing trainer, said the government must support the freelancing sector's efforts to bring foreign exchange into Pakistan rather than introduce measures that may create fear and discourage digital workers. Citing Bangladesh as an example, Sarwar noted that tax holidays and cashback incentives for its IT sector and freelancers have driven rapid growth. Pakistan, he argued, should strengthen its high-potential IT sector similarly to boost exports to $10 billion per annum.
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