Tech

The Telecom Operators’ Association (TOA), together with GSMA, hosted an event to mark the release of the GSMA Mobile Gender Gap Report 2026, which highlights Pakistan’s historic progress in narrowing the mobile gender gap. According to the report, Pakistan recorded the largest improvement among all surveyed countries in narrowing the mobile ownership gender gap, which declined from 37% in 2024 to 27% in 2025. Pakistan also ranked among the top-performing countries across the 14 low- and middle-income countries (LMICs) surveyed, recording improvements across nearly all indicators of women’s digital access and usage. A key highlight of the report was the sharp reduction in the mobile internet gender gap, from 25% to 8% in just one year, among the fastest improvements recorded globally. Women’s mobile internet usage increased significantly, while male usage remained relatively stable, indicating strong momentum in women’s digital adoption. The report also found that 94% of women with their own smartphones use mobile internet daily, compared to 48% among those using shared devices, highlighting the critical role of device ownership in enabling meaningful digital engagement. Speaking at the event, Aamir Ibrahim, Chairman TOA, said: “Pakistan’s progress in narrowing the gender gap in mobile ownership and internet use is a significant achievement and demonstrates what is possible when government, industry, and other stakeholders work toward a shared goal of digital inclusion. Sustaining this momentum will require continued focus on affordability, digital skills, and creating more opportunities for women to independently participate in the digital economy.” Julian Gorman, Head of Asia Pacific at GSMA, said: “Pakistan stands out as one of the strongest performers among the countries surveyed. The substantial reduction in the gender gap reflects meaningful progress driven by collective effort. Ensuring women have access to their own devices and a supportive digital ecosystem will be critical to maintaining this momentum.” Participants highlighted affordability, digital literacy and skills, and social norms and family disapproval as key barriers to women’s internet adoption. They emphasized the need for a multi-dimensional response, including affordable devices, improved digital literacy, safe and inclusive online environments, and efforts to address structural barriers limiting women’s access. Speakers reiterated that mobile internet access enables education, healthcare, financial services, entrepreneurship, and broader economic opportunity, making digital inclusion a key development priority for Pakistan. The Association also welcomed ongoing policy and industry efforts aimed at expanding digital access and inclusion. TOA commended the Government of Pakistan, the Ministry of Information Technology and Telecommunication (MoITT), the Pakistan Telecommunication Authority (PTA), development partners, and industry stakeholders whose collective efforts have contributed to improving digital access for women and accelerating Pakistan’s progress toward a more inclusive digital future.

KARACHI: The Pakistan Freelancers Association (PAFLA) has called on the Federal Board of Revenue (FBR) and the Ministry of Finance to continue supporting Pakistan’s growing freelancing and digital workforce in the Federal Budget 2026-27. PAFLA has recommended retaining the reduced tax rate of 0.25 percent on foreign exchange earnings for the next ten years, alongside allocating funds for capacity-building programs, establishing freelancing hubs in multiple cities, and providing subsidies for internationally recognized certifications. PAFLA Chairman Ibrahim Amin emphasized that extending the 0.25 percent tax regime would encourage freelancers to channel their earnings through local banks and inspire students, young professionals, and women to adopt freelancing as a sustainable career path. He noted that freelancers registered with PSEB currently benefit from the 0.25 percent rate, and PAFLA is eager to work closely with PSEB to simplify the registration process so more freelancers can access these incentives. “A stable, simple tax regime benefits the entire digital economy, freelancers, software houses, and the broader IT industry alike,” he said. Citing the ILO’s recognition of Pakistan as one of the world’s largest providers of digital labour, Chairman Amin added that this reflects the collective strength of Pakistan’s tech and digital ecosystem. According to the State Bank of Pakistan, freelancing export receipts surged to $959 million during July-April FY2025-26, up 49 percent from the same period last year. Dr. Imran Batada, President and CEO of PAFLA, said the government should also refrain from imposing additional taxes on content creators producing knowledge-based content, including skills training, news and analysis, educational content, and infotainment. He cautioned that complex tax classification mechanisms could push digital workers toward informal channels, reducing documented remittances and weakening Pakistan’s foreign exchange position, an outcome that would affect the entire industry. He also urged the government to invest in improving payment infrastructure, including a globally integrated national payment gateway, a step that would benefit all digital service providers across Pakistan. “Pakistan’s freelancers have contributed nearly $1 billion in foreign exchange this fiscal year. These are young Pakistanis from every corner of the country, competing globally and bringing dollars home. Together with the broader IT industry, they represent Pakistan’s greatest economic opportunity,” Dr. Batada concluded.

KARACHI The Pakistan Software Houses Association (P@SHA) has called for a clear distinction between genuine project-based freelancers and full-time remote employees working for foreign companies in its proposals for the Federal Budget 2026–27. The association warned that the lack of proper differentiation is causing serious distortions in the taxation of the digital economy. P@SHA highlighted growing reports of misuse of the freelancer tax framework. Many IT companies are allegedly exploiting the system—originally designed for independent gig workers—through “tax arbitrage” to lower their tax obligations. This practice is artificially inflating freelance export figures and creating an uneven playing field, ultimately harming genuine freelancers by limiting their opportunities and benefits. Despite various global and domestic challenges, Pakistan’s freelance earnings reportedly reached $950 million in the first ten months of the current fiscal year, seemingly surpassing major competitors like India, China, and the UAE. According to P@SHA, this trend is undermining fiscal fairness and damaging the formal IT sector. The association reiterated its support for a supportive environment for authentic freelancers while giving priority to the sustainable growth of registered IT companies and the gradual formalization of the gig economy. To ensure long-term stability, P@SHA has recommended extending the existing 0.25% final tax regime (FTR) for IT exporters and genuine freelancers for the next 10 years. The association stressed that policy continuity is crucial for attracting international clients, maintaining steady foreign exchange inflows, and strengthening registered technology firms. A central recommendation is the formal classification of digital workers. Independent, project-based freelancers should continue to enjoy the simplified tax regime, while individuals working full-time for foreign employers on fixed salaries should be taxed under the standard progressive income tax slabs applicable to salaried persons. Tufail Ahmed Khan, Honorary President of the Global Freelancers Union (GFU), endorsed P@SHA’s position, stating that authentic freelancers deserve to retain the 0.25% final tax benefit, whereas remote professionals on fixed salaries from overseas should be taxed appropriately as salaried employees. This clear distinction aims to create a level playing field for local IT companies, which invest significantly in infrastructure, regulatory compliance, employee benefits, and training, but currently face unfair competition from unregistered remote work arrangements. P@SHA Chairman Sajjad Syed emphasized that formalizing the tax treatment of full-time remote workers will help protect the domestic corporate sector, promote documentation of the economy, and encourage individual contributors to build structured, globally competitive IT businesses. Additionally, P@SHA called for structural reforms including simplified banking procedures, smoother inward remittance systems, and easier tax filing processes. While acknowledging the important role freelancers play in youth employment and digital exports, the association believes the long-term objective should be to help them scale up into formal organizations. The proposals also stress the need for substantial national investment in high-growth areas such as Artificial Intelligence, cloud computing, and cybersecurity. Through equitable taxation policies and strategic investments, P@SHA aims to position Pakistan as a leading global hub for formal, high-value technology outsourcing and innovation.

Islamabad, Pakistan, In a significant move to advance Pakistan’s digital economy and strengthen youth-driven innovation, young leader and fintech advocate Ibtisam Babar has been appointed as the Focal Person for the Prime Minister Youth Programme (PMYP) Fintech Division under the Prime Minister’s Digital and Cashless Pakistan Initiative. The official appointment letter was handed over by Chairman Prime Minister Youth Programme, Rana Mashhood Ahmad Khan, during a special meeting focused on empowering youth through technology, innovation, and financial inclusion. In his new role, Ibtisam Babar will lead the PMYP Fintech Division with a strategic focus on expanding youth financial inclusion, promoting digital payment systems, supporting fintech policy reforms, and transforming higher education institutions into digitally integrated and cashless ecosystems across Pakistan. The initiative is aligned with the broader vision of the Prime Minister’s Digital and Cashless Pakistan agenda, which aims to create a technology-driven economy where young people become key contributors to innovation, entrepreneurship, and sustainable digital transformation. As Focal Person, Ibtisam Babar will work closely with stakeholders from academia, fintech industries, innovation ecosystems, and youth communities to create opportunities that improve digital accessibility, financial empowerment, and nationwide youth engagement. Widely recognized for his leadership and impact-driven initiatives, he has emerged as one of Pakistan’s prominent young voices in entrepreneurship, innovation, and community development. Over the years, he has played an important role in connecting students, startups, universities, and policy-level platforms to support youth empowerment and economic inclusion. His work has largely focused on strengthening startup ecosystems, promoting innovation-led communities, encouraging leadership among students, and driving initiatives related to digital transformation and financial inclusion. Through several national initiatives and youth-focused platforms, he has contributed to building collaborative ecosystems that empower young entrepreneurs and aspiring changemakers across the country. Ibtisam Babar’s efforts have earned him multiple recognitions, including Young Entrepreneur of the Year, Future Leader of the Year, inclusion among the 100 Young Leaders of Pakistan, and recognition in Connected Pakistan 30 Under 30. He has also represented Pakistan at various national and international forums dedicated to innovation, entrepreneurship, youth leadership, and technology-driven development. Speaking on the occasion, Rana Mashhood Ahmad Khan said that Pakistan’s youth are the driving force behind the country’s digital future. He described Ibtisam Babar as a representative of a new generation of visionary leaders who understand innovation, community impact, and the transformative power of technology. He added that the appointment reflects the government’s commitment to empowering young minds under the vision of a Digital and Cashless Pakistan and expressed confidence that Ibtisam Babar’s leadership would help accelerate financial inclusion, digital adoption, and youth engagement nationwide. Expressing gratitude on his appointment, Ibtisam Babar said he was deeply honored by the trust placed in him by the PMYP leadership. He described the responsibility as not just an appointment, but a mission to empower Pakistan’s youth through fintech, innovation, and digital accessibility. He emphasized the vision of building a financially inclusive, digitally connected, and cashless Pakistan where every young individual has access to opportunities, technology, and economic empowerment. He also expressed his commitment to working with institutions, innovators, and communities across the country to help turn this vision into reality. The appointment marks another important milestone in Pakistan’s journey toward building a future-ready digital economy powered by innovation, youth leadership, and inclusive technological advancement.