From opportunity to exit – How vague tax policies are hurting the gig economy

Just a few short years ago, the buzz around Pakistan was electrifying. Experts and investors alike were pitching it as the next frontier for the global gig economy, and for good reason. The nation boasted a perfect storm of ingredients for digital work to thrive: a vast, energetic young population eager for work, the widespread availability of affordable smartphones connecting millions, massive underemployment creating a ready workforce, and rapidly rising urban demand for services and skilled labor.

It was a vision of immense potential – a pathway for countless individuals to secure livelihoods, contribute to the economy, and elevate their living standards through flexible, digitally-enabled work. Platforms were emerging, freelancers were connecting with global clients, and local services were being transformed.

However, that initial wave of optimism has begun to recede, giving way to growing concern and, for many, an exodus. The promise of the ‘next big market’ is being overshadowed by a critical issue that threatens to stifle this nascent industry: vague and often challenging tax policies. This lack of clarity and consistent implementation is creating an environment of uncertainty, making it difficult for gig workers to operate and for platforms to invest and grow. What was once seen as a golden opportunity is now, for many, becoming a reason to exit.

Source: Original Article