A New Economic Reality
It is a well-evident fact that business landscape in Pakistan has been revolutionized over the past few years indicating a shift from traditional job models to multi-income model. Intuitively, this could be attributed to inflationary burdens, lethargic job market, and exceedingly digitalized sectors. This has in turn forced many professionals to reimagine the patterns of earning, spending, and value creation through credit. This dynamic business setting has induced the world to develop a new “side hustle economy” that is trending due to its capacity to reshape both businesses and careers.
Transformation from Passion to Practicality
Given this, it is a ritual now to see a banker promoting his online apparel brand, a marketing executive as a freelancer, or a university student using Instagram as a small e-commers manager. So, we can say that people here are now more strategically oriented towards “earning something extra” for modern economic survival. Here the motivation is not only about “entrepreneurial curiosity” but it is now a necessity as mmounting living outlays, impulsive job markets, and technological openness have further powered up this transformation. On the other hand, the business sector is adapting a new model that requires hiring of workforce on project basis, outsourcing digital amenities, and mixing gig-based procedures.
Entrepreneurial Potential of Pakistan
Referring to the entrepreneurial potential, Pakistan is progressing its digital infrastructure through promotion of online payment systems and social media marketing tools. As per the estimates, 2.73 million active freelancers are contributing around worth of USD 1.6 billion in the digital market This clearly indicates that the side hustle economy has been powered by innovation as majority of them are young individual (75% are under 35 years). Additionally, 90% of them are university degree holders exhibiting and expertise skills in computer science, business, and digital marketing into profitable micro-enterprises. However, this new economy is also subject to a few limitations regarding its sustainability in the long run, compatibility with the financial systems, taxation, and business education. This raises serious concerns for such a vibrant yet informal section of Pakistan.
Resilience and Future of Modern Work
Despite, there is no state of quandary that hustle economy is serving as a short-term response to crisis and thus it can be regarded as an emerging model of work and enterprise. Therefore, the rise of the side-hustle economy imitates the resilience of the business sector of Pakistan and illustrateses the potential of individuals and organizations to innovate in the face of constraint turning challenges into opportunities.
Table 1: Pakistan’s Side Hustle and Freelance Economy — Key Indicators (2025)
Category | Key Data and Findings |
Freelance Market Size | · Estimated at USD 1.6 billion in 2020, with USD 269.8 million in freelance remittances recorded in 2023. |
Active Freelancers | · Around 2.73 million active freelancers across Pakistan in 2023, one of the largest freelance workforces globally. |
Gender Composition | · 79% male, 21% female participation in freelancing. |
Age Distribution | · 18–24 years: 33% · 25–34 years: 42% · 35–44 years: 20% · 45–54 years: 4% · 55–64 years: 1% · 65+ years: 0.5% |
Education Level | · Graduate: 63% · Undergraduate: 28% · High School: 8% · PhD: 2% |
Top Universities Represented | · Karachi University · Virtual University (VU) · Iqra University · Punjab University · SZABIST · NUML |
Fields of Study | · Predominantly Computer Science, followed by Business Administration, Accounting, and Engineering. |
Years in Freelancing | · Majority (about 60%) have 1–5 years of freelancing experience. |
Monthly Income (PKR) | · <15,000 PKR: Significant portion · 15,000–30,000 PKR: Moderate · 30,000–100,000 PKR Moderate · 100,000–500,000+ PKR28.5% earning at higher tiers. |
Skill Combination Trends | · Most freelancers work in 2–3 niches simultaneously — common mixes include Graphic Design, Digital Marketing, and Content Writing, or E-commerce Management, SEO, and Marketing. |
Automation Vulnerability | · Around 23% of freelancers work in low-paid niches with high automation risk (e.g., basic design, data entry). |
Source: Pakistan Freelancers Association (PAFLA)
By Nargis Noman
Lecturer – Department of Business Administration
Iqra University Business School
