Do we see gloom or hope? Will our incomes enhance? Is the economy ready to provide more jobs? Some themes that I feel the profesisonals will continue to ponder about:
- Higher Tax, Lower Savings – With the 39% max tax rate, professionals must find tax-efficient investment channels (e.g., pension fund rebates).
- Fewer Local Opportunities – Limited job growth will likely push top talent abroad, continuing the brain drain.
- Economic Uncertainty – Ongoing IMF negotiations and policy shifts create an unpredictable environment for career planning.
- Focus on Financial Security – Diversified investments and international opportunities are crucial to mitigate local economic risks.
- Higher fiscal pressure, limited job growth, and economic uncertainty.
Based on the key economic highlights of 2024, the following areas will need to be looked into by the professionals:
🔹 Tax Pressure on Salaried Class
- 39% tax rate on salaried individuals pushed many to the edge, contributing to a 57% jump in tax collection (Rs198B) from July to November.
- This rising tax burden leaves professionals with diminished disposable income, impacting savings and financial planning.
🔹 Stalled Career Growth & Job Creation
- Economic instability has stifled job creation, limiting career mobility and advancement.
- Many professionals are exploring opportunities abroad due to fewer local prospects and stagnant wages.
🔹 IMF Bailouts & Policy Uncertainty
- Pakistan secured its 25th IMF bailout in 2024, but debt rollovers (worth $17B) prolong reliance on the IMF.
- Fragmented decision-making across the Finance Ministry, PM Office, and Deputy PM Office has led to inconsistent policies that impact professionals directly.
🔹 Exchange Rate & Purchasing Power
- The rupee’s parity at Rs278/USD stabilized inflation but reduced incentives for exporters and remittance earners.
- Despite this, experts estimate the real rupee value at Rs240/USD, reflecting underlying market misalignments.
🔹 Digital Disruptions for Freelancers & Tech Professionals
- The PKR 39B firewall implemented to control social media slowed internet speeds, damaging Pakistan’s freelance economy and reducing opportunities for tech professionals.
🔹 Geopolitical Risks to Market Access
- EU’s warning over human rights concerns threatens to revoke Pakistan’s duty-free export status, putting industries (and jobs) at risk.
- A potential shift in US policies (Trump administration) could complicate Pakistan’s ability to secure favorable IMF terms.
2025 will demand resilience, adaptability, and strategic financial planning. Pakistani professionals must navigate carefully, focusing on personal growth, upskilling, and global engagement to withstand the challenges ahead.
What you can do to enhance your earning without worrying about the job market?
- Tech Industry Careers: Specialising in high-demand areas like software development, data science, AI, cybersecurity, and blockchain can lead to substantial earnings. Entry-level software developers earn approximately PKR 64,000 per month, while experienced professionals can earn up to PKR 3,000,000 annually. (Indeed, TheIQ, Nucamp)
- Freelancing and Remote Work: Engaging in international projects through platforms like Upwork or Fiverr can be lucrative. A top freelancer in Pakistan can earn between PKR 200,000 to PKR 1,500,000 monthly depending on the projects and specialization. For instance, a top-rated web developer can earn up to PKR 1,500,000 per month through freelancing. (Upwork, Freelancer)
- Entrepreneurship & Startups: Focus on identifying market needs and launching your own business. It might be tough in the beginning, but it will be worth it eventually. The more effort you give to your brand, the better your earnings will be
- Consulting in Finance and Business: Offering consulting services in finance, accounting, management, and strategy can be rewarding. Utilize your expertise to enhance organizations and employees knowledge
- Skill Development & Online Education: The demand for specialized online courses and training in fields like digital marketing, coding, graphic design, and business management is growing rapidly. Professionals who establish their own e-learning platforms or join existing ones as instructors can generate significant revenue. For instance, digital skills training providers can earn upwards of PKR 2,000,000 annually, especially if they tap into international markets through platforms like Udemy, Coursera, or LinkedIn Learning. The rise in Pakistan’s online learning market, estimated to reach USD 200 million by 2025, offers considerable opportunities for professionals in this space. (Business Recorder, TechJuice)
- Digital Marketing and Content Creation: With the growing reliance on digital platforms for brand promotion, skilled digital marketers and content creators can build lucrative careers by offering services to both local and international clients. Social media influencers, YouTubers, and bloggers, for example, can generate substantial income through sponsored content, affiliate marketing, and brand partnerships. A successful YouTuber in Pakistan can make up to PKR 500,000 or more per month based on viewership and engagements. Additionally, digital marketers who manage campaigns for international clients can earn anywhere from PKR 250,000 to PKR 2,500,000 annually. (SalaryExpert, The Business Model Analyst)
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References:
International Monetary Fund (IMF), 2024. IMF Executive Board Approves $7 Billion Extended Fund Facility for Pakistan. [online] Available at: https://www.imf.org [Accessed 21 December 2024].
Government of Pakistan, Ministry of Finance, 2024. Economic Survey of Pakistan 2023-24. Islamabad: Ministry of Finance.
Federal Board of Revenue (FBR), 2024. Tax Collection Report: July – November 2024. [online] Available at: https://www.fbr.gov.pk [Accessed 21 December 2024].
Dawn News, 2024. Pakistan’s Economic Struggles Continue Despite IMF Bailout. [online] Available at: https://www.dawn.com [Accessed 20 December 2024].
The Express Tribune, 2024. IMF Bailout Secures Economy but Tax Hikes Hit Salaried Class. [online] Available at: https://www.tribune.com.pk [Accessed 20 December 2024].
The News International, 2024. Pakistan’s Economic Challenges and IMF Conditions in 2024. [online] Available at: https://www.thenews.com.pk [Accessed 19 December 2024].
State Bank of Pakistan (SBP), 2024. State of Pakistan’s Economy: Annual Report 2023-24. Karachi: SBP.
Geo News, 2024. Tax Burden on Salaried Class Hits Record High in 2024. [online] Available at: https://www.geo.tv [Accessed 21 December 2024].
European Union, 2024. EU Review on Pakistan’s GSP+ Status. [online] Available at: https://www.europa.eu [Accessed 19 December 2024].
Reuters, 2024. Pakistan’s Rupee Stabilized at Rs278 Against USD, Experts Dispute Real Value. [online] Available at: https://www.reuters.com [Accessed 18 December 2024].
Benazir Income Support Programme (BISP), 2024. BISP Annual Impact Report 2024. Islamabad: BISP.
Indeed. (n.d.). Software Engineer Intern Salaries in Pakistan. Retrieved from https://pk.indeed.com/career/software-engineer-intern/salaries
TheIQ. (n.d.). Average Salary of Software Engineer in Pakistan. Retrieved from https://theiq.pk/average-salary-of-software-engineer-in-pakistan/
Nucamp. (n.d.). Ranking the Top 10 High-Paying Tech Jobs in Pakistan. Retrieved from https://www.nucamp.co/blog/coding-bootcamp-pakistan-pak-ranking-the-top-10-highpaying-tech-jobs-in-pakistan
SalaryExpert. (n.d.). Digital Marketing Manager Salary in Pakistan. Retrieved from https://www.salaryexpert.com/salary/job/digital-marketing-manager/pakistan
Glassdoor. (n.d.). Marketing Manager Salaries in Pakistan. Retrieved from https://www.glassdoor.com/Salaries/pakistan-marketing-manager-salary-SRCH_IL.0%2C8_IN192_KO9%2C26.htm
Dawn. (2020). E-commerce in Pakistan. Retrieved from https://www.dawn.com/news/1579547
TechJuice. (2021). Pakistan’s E-Commerce Market Statistics. Retrieved from https://www.techjuice.pk/pakistan-ecommerce-market-statistics/
Upwork. (n.d.). How Freelancers Earn on Upwork. Retrieved from https://www.upwork.com/i/how-it-works/
Freelancer. (n.d.). Freelancer Income and Earning Potential. Retrieved from https://www.freelancer.com/articles/freelancer-income
Business Recorder. (2023). Online Learning Market in Pakistan. Retrieved from https://www.brecorder.com/news/40150151
TechJuice. (2023). Pakistan’s Online Education Market. Retrieved from https://www.techjuice.pk/pakistans-online-education-market/
The Business Model Analyst. (2022). How Much Does a YouTuber Earn in Pakistan?. Retrieved from https://businessmodelanalyst.com/how-much-does-a-youtuber-earn-in-pakistan/