• The government has introduced a policy to support freelancers in Pakistan.
• The policy aims to position Pakistan as a leading global freelance market.
• Freelancers with two years of IT export remittances exceeding $5,000 will get visa facilitation.

The Ministry of Information Technology and Telecommunication has introduced the “National Freelancing Policy,” which proposes a reduced sales tax rate of up to 2 percent for freelancers registered with the Pakistan Software Export Board (PSEB). The aim of this policy is to position Pakistan as a leading global freelance market and boost the country’s exports and foreign exchange earnings.

Under the policy, the PSEB and the State Bank of Pakistan (SBP) will collaborate to simplify the process of inward foreign exchange remittances for freelancers. This will be achieved by using freelancing-defined codes designated by the SBP, which will also be eligible for income tax exemptions.

In addition, the PSEB will work alongside the SBP to enable registered freelancers to open foreign exchange bank accounts. This will provide freelancers with a dedicated platform to manage their foreign exchange earnings conveniently.

Overall, the National Freelancing Policy aims to support the growth of the freelance industry in Pakistan by introducing favorable taxation measures and facilitating foreign exchange remittances. By creating a conducive environment for freelancers, the policy seeks to boost the country’s digital economy and enhance its position in the global freelance market.

SBP will enable freelancers to retain 35 percent of their foreign exchange income in dedicated foreign exchange business accounts. PSEB will collaborate with the MoF and FBR to ensure tax exemption for foreign exchange export remittances received under freelancing codes until 2030.

Visa facilitation will be granted to freelancers who have a minimum of two years’ record of IT and ITeS export remittances exceeding US $5,000 annually through formal banking channels. This facilitation will streamline the visa process for eligible freelancers, acknowledging their valuable contributions to the export of IT services.

Registered freelancers will also be eligible for subsidized home loan schemes, provided they can demonstrate a minimum of five years of freelancing export remittances amounting to more than $12,000 annually. This initiative aims to support freelancers in securing affordable housing options.

The policy emphasizes the importance of business development for freelancers, focusing on enhancing their access to international markets, projects, and clients. To achieve this, a robust marketing strategy and promotional plan will be implemented to showcase freelancers’ skills and capabilities on a global scale.

As part of the proposed policy, the PSEB will offer freelancers the opportunity to register for Rs. 1,000 and renew their registration annually for Rs. 3,500. This will grant them access to various PSEB programs and initiatives, including free and subsidized training, certifications, subsidized office space at Software Technology Parks (STPs) across the country, and access to international marketing and matchmaking opportunities.

These measures aim to create a supportive environment for freelancers in Pakistan, providing them with incentives and resources to thrive in the freelance industry while contributing to the growth of the country’s digital economy.

Moreover

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• PSEB to establish a facilitation desk for freelancers at the PSEB office and a PSEB-operated STP to address matters related to registrations, taxation, banking, Intellectual Property (IP) rights, Voice over IP (VoIP) whitelisting, Virtual Private Network (VPN) access, dispute resolution, or any other legal or commercial matters.
• PSEB and relevant government bodies will provide visa facilitation to freelancers with a record of a minimum of three years of IT and ITeS export remittances exceeding US $5,000 per annum through formal banking channels.
• Provide digital banking channels to freelancers for opening bank accounts, enabling e-payments, providing access to other financial instruments, increasing export remittances, and simplifying outward remittances for purchasing services, software, tools, and digital platforms.
• Banks to establish technology business branches in at least six Pakistani cities where technology-aware bank staff can help freelancers. PSEB will work with SBP and banks to provide relevant training for the staff of these branches.
• PSEB and relevant government and private sector organizations to collaborate on providing subsidized, collateral-free loans up to Rs. 1.0 million to registered freelancers through existing and new initiatives of banks and financial institutions.
• Provide an income tax holiday to registered freelancers till 2030 on export income, revenue, or receipts of freelancers, subject to receipt of income or revenue through formal banking channels in the specific purpose codes assigned by the SBP.
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• PSEB and relevant government and private sector organizations collaborate on providing subsidized health insurance, life insurance, and employee liability insurance to registered freelancers through existing and future subsidies and initiatives.
• HR Development and Entrepreneurship

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PSEB, in collaboration with public and private sector entities, will introduce training and certification programs for registered freelancers. These initiatives will involve partnerships with multinational technology companies (Tech MNCs) to offer subsidized course materials and certifications, providing access to registered freelancers.