Aitizaz Hassan

The freelancing industry showed a disappointing growth in export remittances in Fiscal Year 2021-22 compared to the Fiscal Year 2020-21, reports WealthPK.

According to the data on information communication technology (ICT) released by the Ministry of Information and Telecommunication, freelancers earned export revenue of $397.328 million in FY2021-22 at a growth rate of just 0.27% compared with $396.243 million revenue generated during the FY2020-21.

According to the data, the IT freelancers posted $265.444 million in FY2021-22 compared to $363.06 in FY2020-21, showing a decline of 26%. Non-IT freelancers generated $131.884 million during the FY2021-22 compared to $33.179 million during the Fiscal Year 2020-21, registering a growth of 297.49%.

The IT export remittances of freelancers during the FY2021-22 were $265.444 million accounting for 14.77% of the total ICT export remittances of $2.616 billion during the FY2021-22.

According to Tufail Ahmed Khan, CEO of Pakistan Freelancers Association, the Pakistani freelancing industry secured 3^rd position in 2020 in the world freelancing market. When the leading freelancing industries choked due to Covid-19 pandemic, the Pakistani freelancing industry got itself recognized in the world. He suggested that the govt incentivize and facilitate freelancers because the global freelancing market will grow in the post-Covid episode.

“The freelancing export remittances of $397.328 million is nothing and it should double according to the industry potential and increasing trends of freelancing in different services,” Tufail added.

“The market will be USA and Europe and the freelancers can make millions of dollars while working from their homes. A freelancer just seeks initial enabling from the government whereas the rest of the work is done by themselves. Freelancers find the work on their own using the internet on Fiverr, Upwork, Amazon, Python, etc.” Tufail added.

According to a report of the Pakistan Software House Association (P@SHA), in order to facilitate and incentivize the freelancers, the registered freelancers should be allowed to retain foreign currency up to a value of $100,000 so that they do not lose the value of their earnings due to volatility in the foreign exchange rates. This incentive will encourage them to bring the foreign exchange to Pakistan currently parked offshore. The encouragement of freelancers will help Pakistan to boost its economy.

The report, a copy of which is available with WealthPK, said currently freelancers were not included in the standard definition of IT and ITeS industry due to which they could not avail themselves of the services and incentives given to an industry.

“For instance, the foreign currency account retention is not allowed to freelancers. Also, every year freelancers contribute considerable revenue to the economy, but it goes unreported,” the report added.

Credit: Independent News Pakistan-WealthPak