The Ministry of IT and Telecom has submitted the National Freelancing Facilitation Policy to the Federal Cabinet for approval.
The policy, developed after extensive consultations with relevant stakeholders, aims to position Pakistan as a leading global freelance market, enhancing exports and foreign exchange earnings.
According to the IT Ministry, the policy will provide freelancers with access to international markets, projects, and clients, supported by a robust marketing and promotional strategy. Fiscal and non-fiscal incentives are proposed to boost the freelancing sector, with goals to increase the number of active freelancers to one million and raise the average annual earnings to $5,000.
This could potentially contribute $5 billion in export remittance inflows, making Pakistan a top freelancer marketplace.
Key elements of the policy include the creation of a freelancer registry through a dedicated portal, which will facilitate interaction with local and international markets and regulatory authorities. The policy proposes a transparent governance model and framework, digital banking, e-payments, and access to financial instruments, including low-interest loans for freelancers. Additionally, registered freelancers would benefit from an income tax holiday.
The policy emphasizes building a digital-ready environment and increasing the adoption of learning and skill development practices. Capacity building and training programs aim to enhance the skills of human resources. Special initiatives are planned for underserved areas and districts in Southern Balochistan to promote inclusivity.
A facilitation desk for freelancers, visa facilitation, and digital banking channels are recommended. Banks are encouraged to establish technology business branches in at least six Pakistani cities to support freelancers. The Pakistan Software Export Board (PSEB) and relevant organizations will collaborate to provide subsidized, collateral-free loans up to Rs. 1 million, and health, life, and employee liability insurance through subsidies.
Further steps include maintaining an income tax holiday for registered freelancers until 2030, launching new training and technology certification initiatives, and streamlining inward foreign exchange remittances using defined codes exempted from income tax.
The policy also seeks to enable foreign exchange bank account openings for freelancers, allowing retention of over 50 percent of foreign exchange income in these accounts.
The PSEB will work with the Ministry of Finance and the Federal Board of Revenue to ensure these remittances remain tax-exempt until 2030.
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