Gig Economy Flourishes in Pakistan Despite Challenges, Calls for Policy Reforms and Social Security. The gig economy in Pakistan is experiencing growth, with many individuals opting for flexible working hours and entrepreneurial ventures. However, experts point out that there are significant obstacles hindering its full potential. Shahzad Khan, a gig economy expert, expressed concerns over the lack of social security and proper employee status for freelancers in the country.
Hassan Arshad, Director of Policy and Communications at FoodPanda, highlighted the need for empowering gig economy workers by capitalizing on their existing skill sets and implementing a comprehensive policy framework to protect their rights.
One of the main challenges faced by freelancers in Pakistan is the lack of widely accepted payment channels like PayPal, which affects their growth in foreign markets. While Pakistan offers payment options like Payoneer and Skrill, international clients often prefer PayPal, making it difficult for freelancers to fully tap into global opportunities.
According to the Organisation for Economic Co-operation and Development (OECD) projections, only about 2% of Pakistan’s labor force engages in the platform economy through online and location-based services. With a substantial youth population entering the workforce, experts stress the need to create more opportunities and a reliable cash transfer system for gig workers.
To foster greater participation in the gig economy, public-private cooperation is crucial. The government can collaborate with the private sector to provide necessary skill training and support packages, enabling young people to access sustainable livelihoods through gig platforms.
Despite challenges, the gig economy presents economic and financial options for workers, such as FoodPanda riders, who have the flexibility to supplement their income from other full-time jobs. Ensuring social security and recognizing gig workers as legitimate employees are essential steps to empower them and promote growth in the gig economy.
Overall, embracing the gig economy and implementing supportive policies can unleash its potential, providing opportunities for millions of young people in Pakistan.
