The freelancing ecosystem in Pakistan, once a booming sector providing livelihoods to millions, now faces an uncertain future. A stable and secure internet connection is essential for freelancers to deliver their work efficiently and support the country's foreign exchange reserves. The Economic Survey of Pakistan reported that Pakistani freelancers generated $350 million in FY 2023-24, a 40% increase from the previous year.
Recently there have been nationwide internet disruptions in Pakistan that have resulted in freelancers missing deadlines, losing clients and consequently income. As one of the major global IT outsourcing hubs, Pakistan’s economy could potentially lose up to $300 million if these disruptions persist, as estimated by Pakistan Software Houses Association (P@SHA).
The internet slowdowns have been attributed to the alleged testing of an internet firewall to drive censorship across social media. Rumored to have been inspired by China’s ‘Great Firewall’, the firewall is equipped with filters that block unwanted content from reaching a wider audience by restricting access to certain websites and platforms that the government deems problematic. However, the consequences extend beyond content regulation; such a firewall can severely impact internet speed and accessibility, hindering freelancers' ability to work.
Pakistani Freelancers Association’s (PAFLA) President and CEO, Tufail Ahmed Khan, told Business Recorder,
“Pakistan is the fourth largest freelancing industry globally, with over 2.3 million full-time and part-time freelancers. If this issue persists, online freelancing platforms may downgrade our standing, further damaging the industry.”
The rise of freelancing platforms like Fiverr, Upwork, and Freelancer have allowed Pakistanis to tap into the global economy, providing services to clients worldwide. Fiverr's decision to mark profiles from Pakistan as "unavailable" is a direct response to the ongoing internet issues that have afflicted the nation.
The government has also increasingly cracked down on VPN usage, requiring registration and imposing penalties on unregistered users. This creates another obstacle for freelancers who rely on VPNs to maintain their operations.
The country’s digital workforce is resilient, but the challenges they face are significant. While internet disruptions, Fiverr’s restrictions, and VPN issues present an immediate issue there are steps that can be taken to mitigate the damage. For the past few years, the Pakistani government has been working on supportive measures like tax exemptions, incubation centers and coworking spaces to support freelancers. However, none of this will matter if freelancers can’t rely on a stable and uninterrupted internet connection.
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