The Pakistan Freelancers Association (PAFLA) has urged the Federal Board of Revenue (FBR) and the Ministry of Finance to continue supporting the growing freelancing and digital workforce in the Federal Budget 2026-27.

PAFLA recommends maintaining the reduced 0.25% tax rate on foreign exchange earnings for the next ten years, funding capacity-building programs, establishing freelancing hubs, and providing subsidies for internationally recognized certifications. Chairman Ibrahim Amin stated that extending this tax regime would encourage freelancers to use local banks and attract more individuals to freelancing.

With freelancing export receipts reaching $959 million during July-April FY2025-26, up 49% from last year, Dr. Imran Batada, PAFLA President, cautioned against imposing additional taxes on content creators, as complex tax classifications could drive digital workers into informal channels. He also called for improving payment infrastructure with a national gateway to support digital service providers across Pakistan.

“Pakistan’s freelancers are making nearly $1 billion in foreign exchange this fiscal year, representing a significant economic opportunity,” Dr. Batada concluded.