Salaried class taxed record Rs368b in fiscal year 2023-24 (tribune). It paid 232% more than combined taxes paid by exporters, retailers!!
In a society where the relatively wealthy, such as exporters and retailers, receive numerous benefits at the expense of salaried individuals struggling to make ends meet, it is clear that the system is unjust. There is a lack of investment and job opportunities, and securing a pay raise often necessitates moving, which is not feasible for everyone. Instead of succumbing to the slow poison of taxes, we must be creative and find ways to break free from this cycle.
In the ever-evolving economic landscape of Pakistan, the salaried class faces a unique set of challenges and opportunities. As inflation rises and the cost of living increases, many are left wondering how to secure a more stable and prosperous future.
Here are some viable and, dare I say, interesting options for the salaried class to consider:
1. Entrepreneurship
One of the most empowering paths for the salaried class is to venture into entrepreneurship. This doesn’t necessarily mean starting a tech startup or securing huge investments, or to quit your job! It can be as simple as starting a small-scale business like a chips stall, a shampoo business, a general store, or even becoming a home chef. The key is to take the initiative and start something of your own.
Imagine this: you start a humble chips stall with an initial investment of PKR 50,000. In a month, this side hustle could potentially generate a profit of PKR 60,000 (with PKR 2k/day). That’s right, your passion for snacks could earn you more than your monthly salary!
2. Advocacy: Raising Your Voice for Change
Another critical approach is to actively advocate for better economic policies and representation. The salaried class can unite to speak with government officials, convey their challenges, and push for reforms that can lead to more favorable conditions. This collective pressure can lead to better representation and policies that reflect the needs of the salaried population.
Think of it this way: if 50,000 salaried individuals can come together to lobby for lower income tax rates, we might just see a policy change. Strength in numbers, people!
3. Exploring Global Opportunities
For those seeking immediate and significant financial improvement, moving abroad can be a viable option. Countries with stronger economies offer better job opportunities, higher salaries, and often a better quality of life. While this might not be an option for everyone due to personal and family commitments, it remains a pathway worth considering for those with the flexibility and resources to relocate.
Picture this: an IT professional earning PKR 150,000 per month in Pakistan could potentially earn USD 2,000 per month (approximately PKR 556k) in the Middle East. That’s enough to make anyone’s eyes pop and wallet expand (even if you are able to send 100k home per month). Further, you will contribute to the company with remittances that adds to our foreign exchange reserves (another problem for Pakistan)
4. Upskilling and Continuous Learning
The demand for new skills is constantly evolving, and staying updated can significantly enhance your career prospects. Online courses, certifications, and workshops in emerging fields such as digital marketing, data analysis, and tech development can open up new opportunities and lead to better-paying roles.
Here’s a fun fact: a marketing professional can take a digital marketing certification course for PKR 30,000. This certification can help secure a new role with a 20% salary increase, resulting in an additional PKR 20,000 per month. Over a year, that’s an extra PKR 240,000—enough to fund your next vacation or splurge on that fancy gadget you’ve been eyeing.
5. Freelancing and Gig Economy: Diversifying Income Streams
In addition to their regular jobs, individuals can explore freelancing opportunities and participate in the gig economy to supplement their income. Platforms like Upwork, Fiverr, and Freelancer offer a variety of projects that can be done remotely, ranging from graphic design and writing to programming and digital marketing.
For example, a graphic designer can take on freelance projects that pay an average of PKR 20,000 per project. Completing just two projects a month can add an extra PKR 40,000 to their monthly income
6. Investment and Financial Planning: Making Your Money Work for You
Effective financial planning and smart investments can significantly enhance income over time. The salaried class should consider various investment options such as stocks, mutual funds, real estate, and retirement plans. Consulting with a financial advisor can help in creating a personalized investment strategy that aligns with one’s financial goals and risk tolerance.
For instance, investing PKR 500,000 in a mutual fund with an annual return rate of 10% can yield an additional PKR 50,000 in a year. Over time, with compound interest, these returns can grow significantly, providing a robust financial safety net. It’s like planting a money tree in your backyard—except you don’t have to water it!
7. YouTube Channel: Turning Passion into Profit
Creating a YouTube channel is another excellent way to enhance income while sharing your passions with the world. Whether it’s cooking, tech reviews, travel vlogs, or educational content, YouTube offers a platform to reach a global audience and earn through ads, sponsorships, and merchandise.
Consider this: a cooking enthusiast starts a YouTube channel with regular recipe videos. With consistent content and engagement, the channel grows to50,000 subscribers. This can translate to approximately USD 500-1,000 (PKR 140 -280k) per month from ad revenue alone. Add in sponsorships and merchandise sales, and this hobby could become a significant income source.
Conclusion
The future for the salaried class in Pakistan is challenging, but it is not without hope. This country has made us. we cannot abondon it, but we need to protect ourselves while ensuring that we help to make the system better. By exploring entrepreneurship, advocating for change, considering global opportunities, committing to continuous learning, engaging in freelancing, making smart investments, and even starting a YouTube channel, individuals can navigate the economic hurdles and secure a more prosperous future. Each of these options requires initiative, dedication, and resilience, but the potential rewards make the effort worthwhile. The journey might be tough, but with the right strategies, the salaried class can pave the way for a brighter tomorrow.
Get ready to work the extra hours! The time needs it
Follow Umer Farooqi for relevant content to up skill yourself!
Do check out my latest podcast where we talk about LinkedIn branding, importance of branding to win jobs and clients, Canadian job market & getting an ideal job via LinkedIn