Wednesday, February 16, 2022

Salaries of International Remote Employees From Pakistan Jump 27%

Salaries of Pakistanis hired for remote work by foreign employers are among the world's fastest rising, according to the "State of Global Hiring  Report 2021" produced by San Francisco based Deel. The company provides employment and payroll services for companies hiring international employees and contractors online. Hiring for work from remote locations has taken off since the start of the COVID19 pandemic. The pandemic and recent advances in communications technology are helping globalize the labor market for talent, creating new opportunities for people in developing nations to work remotely at higher wages for global companies. 

Rising Salaries of Global Hires. Source: Deel 


 Salaries rose the fastest for international online hires in Mexico (57%), followed by Canada (38%), Pakistan (27%), and Argentina (21%).  Salaries for global hires from India rose 8%, Philippines 7% and Russia 4%.   Philippines, India and Pakistan are the top three countries in Asia Pacific region where people were hired through Deel. 


Top 3 Source Countries of Employees. Source: Deel


Deel has over 250 legal, accounting, mobility, and tax experts as partners. The company allows any business to create, sign and send compliant localized contracts and pay teams in more than 120 currencies with just a click, according to its latest report on global hiring. It allows contract employees to withdraw a percentage of or their entire paychecks in cryptocurrency—Bitcoin, Ethereum, Solana, Dash, and USDC.

Deel report did not disclose the exact salaries paid in Pakistan after the 27% pay hike. However, a global survey conducted by Payoneer in 2019, showed that Pakistani women freelancers were earning $22 an hour, 10% more than the $20 an hour earned by men. While Pakistani male freelancers earnings are at par with global average, Pakistani female earnings are higher than the global average for freelancers. Digital gig economy is not only helping women earn more than men but it is also reducing barriers to women's labor force participation in the country. The survey also concludes that having a university degree does not help you earn more in the growing gig economy. The survey was conducted in 2015.

Freelancers Hourly Rate by Gender. Source: Payoneer


An average Pakistani freelancer working 34 hours a week at $20 an hour earns $34,000 a year, or nearly 6 million Pakistani rupees a year, a small fortune for a young Pakistani. This is one of the upsides of the online global labor marketplace for skilled young men and women in developing nations like Pakistan. Sometimes freelancing experience leads to tech startups in Pakistan. Year 2021 was a banner year for tech startups in Pakistan

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4 comments:

Majumdar said...

Good tidings. This is the way forward for Pakistani talent. Move more towards cross border gigs/IT services/ IT enabled services and earn globally benchmarked wages plus forex for the country.

Riaz Haq said...

Riaz Haq has left a new comment on your post "2021: A Banner Year For Pakistani Tech Startup Investments":

Rising #smartphone penetration in #Asia. #India, #Bangladesh and #Pakistan have new opportunities to #export online #labor to #America, #Europe. #Asia has the highest mobile phone users globally. #freelancing #gig #digital #economy https://theprint.in/world/india-bangladesh-and-pakistan-have-new-opportunities-exporting-online-labour-to-the-west/828549/

https://twitter.com/haqsmusings/status/1492664640039309312?s=20&t=pHOuQWj-VFbB-wMdOCry_Q


The region should adopt more cross-country collaborations, such as Go Digital ASEAN. These kinds of initiatives undeniably broaden the landscape of the digital economy and boost related infrastructures in the region. Meanwhile, national-level strategies like India’s National Digital Communication Policy (2018), 1st Policy for Digital Pakistan (2018), and Bangladesh’s National ICT Strategy need to be fully implemented and monitored as an utmost priority. Finally, South and Southeast Asian governments should foster a more sustainable digital ecosystem by promoting digital start-ups, removing entry barriers, developing human capital, and establishing national regulatory frameworks for the digital economy.



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Digital transformation worldwide was already increasingly changing how companies make and offer their propositions and interact with their customers. But the COVID-19 pandemic has intensified this, with technology emerging as a critical means of resolving public health challenges and continuing to facilitate the new online consumer landscape. This accelerated digitalization is disrupting the world’s economy, making it one of the most significant growth engines for many developing nations.
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What’s more, with the advent of rapid digitalization, Asian countries like India, Bangladesh, Pakistan and the Philippines are tapping new opportunities by exporting online labour to the West. In Bangladesh, for example, the digital economy is bringing employment to hitherto excluded sections of the population.
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We are already seeing how digitalization is reshaping Asia. The digital transformation of South and Southeast Asia is opening a range of opportunities for its citizens, especially for younger generations. Many Asian countries are even in the lead globally in certain sectors of digitalization. For example, the Philippines and Malaysia have become the top two countries in e-commerce retail growth, increasing by 25% and 23% per year, respectively.


Asia countries are performing impressively on e-commerce growth
Image: eMarketer
What’s more, with the advent of rapid digitalization, Asian countries like India, Bangladesh, Pakistan and the Philippines are tapping new opportunities by exporting online labour to the West. In Bangladesh, for example, the digital economy is bringing employment to hitherto excluded sections of the population.

The pandemic effect
During the COVID-19 pandemic, digital connectivity in Asia played a vital role in overcoming the difficulties of conventional trade. The digital economy acted as a key enabling factor in the Asian recovery, Observer Research Foundation reports. According to Nikkei Asia, the pandemic has had a striking impact on Southeast Asia’s digital economy: 60 million people in the region became online consumers during this period. With this accelerated uptake of technology, there was an increase in nearly all e-commerce during the pandemic, with solid growth in sports equipment and supermarket items.


The pandemic had a beneficial effect on most areas of e-commerce

Asia now accounts for nearly 60% of the world’s online retail sales. Asian-Pacific e-commerce is expected to nearly double by 2025, reaching $2 trillion, according to Euromonitor International. From online retail to ride-sharing services to exporting online labour, this digital boom is reshaping almost every aspect of business and social life in this region.

Riaz Haq said...

#Pakistan #IT incentives: IT/ITES firms & #freelancers to pay no tax, keep earnings in Pak banks in #US$. No restriction on outward #remittances from #PSEB-registered IT Companies & freelancers. No capital gain tax for #startup #investors. #tech #exports https://www.brecorder.com/news/40156290

Pakistan Prime Minister Imran Khan approved on Tuesday a number of incentives, including tax exemptions, to facilitate the IT sector, freelancers and startups, a statement from the ministry said, as the country looks towards the digital economy to boost its dollar inflow.

The Ministry of Information Technology and Telecommunication (MoITT) added that the tax exemption benefit was the biggest demand of the sector.

"The other fiscal and non-fiscal incentives for the industry were proposed by the MoITT," it said.


https://twitter.com/MoitOfficial/status/1496148406380769285?s=20&t=gOGJFpMBfKEH24sqcYaWiw

"Long-outstanding issue of IT companies regarding easy inflow/outflow of foreign currency has also been addressed as specialised foreign currency accounts (FCY) for IT/ITES companies and freelancers will be introduced to meet their operational needs."

The approval was made in a meeting chaired by Prime Minister Imran Khan on Tuesday. Officials of MoITT, Pakistan Software Export Board (PSEB), State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Special Technology Zone Authority and Ignite National Technology Fund were also present in the meeting.

Faulty submarine cable causes internet disruption in Pakistan

According to the MoITT statement, the PM has directed to allow IT/ITES Companies and freelancers to retain 100% amount of remittances received through proper banking channels, in FCY Accounts without any compulsion to convert them into PKR.

Furthermore, there will be no restriction of outward remittances from FCY account for PSEB-registered IT Companies and freelancers.

PM Imran bets on IT sector to generate employment, dollar inflow

The prime minister has also directed the SBP to introduce financing streams for IT/ITES sector and freelancers keeping in view operational architecture and industry needs for these sectors.

"Recommendations of the Pakistan Technology Startup Fund was also approved by the Prime Minister as part of this historic package for the creation of a public-private partnership venture capital fund. Ignite National Technology Fund will create this Fund through Public private partnership."

Earlier, Business Recorder reported that the MoITT has prepared a package of fiscal and non-fiscal incentives for freelancers including the proposal of reduced sales tax rate, not exceeding two percent, as well as income tax holiday on exports income/ revenue/ receipts till 2030 and fast-track and simplified opening of foreign currency bank accounts to create a favourable business environment.

As per the report, the MoITT wanted to re-align the government strategies to attract a reasonable chunk from global spending on outsourcing and freelancing services in Pakistan, which, according to the ministry, will help create thousands of new jobs for freelancers in different sectors in line with the current government policy of creating high-end and well-paying white-collar jobs for youth employed in the digital economy.

Riaz Haq said...

Vehicle Sales in Pakistan

https://minutemirror.com.pk/speedy-recovery-33561/

In the first eight months of the current financial year (July 2021-February 2022), the automobile industry sold cars at a record pace and car sales went up by a record 57 per cent. According to the data released by the Pakistan Automotive Manufacturers Association, 149,813 vehicles were sold in the first eight months of the current financial year as against 95,139 units in the same period of the previous financial year. The breakup of the sale data tells interesting tales: of the sold vehicles, car sales accounted for 57.5 per cent, truck sales for 82.2 per cent, jeep/pickup sales for 51.5 per cent and farm tractor sales for 6 per cent during the period. However, the sale of motorcycles and rickshaws declined by 3%. Car sales are likely to continue to rise till the end of the current financial year. The increased sale of trucks shows the revival of economic activities across the country. Farm tractors’ sale figures are also encouraging as the agriculture sector has seen an unprecedented boom, thanks to the farmer-friendly policies of the government. The figure strengthens the government’s claims of economic recovery.

This has happened at a time when car prices have increased multiple times, and the opposition has been protesting inflation. The figures of car sales have puzzled many and they may scramble the main reasons for the increase in car sales when people are worried about inflation.

According to experts, the main reason for the vehicle sale is the single-digit rate trade and macro recovery, which played a significant role in increasing auto sales in the first eight months of the current financial year. The increase in the purchase of such necessities of life, which are considered luxuries in Pakistan, is not a sign of the recovery or improvement of the economy, but the recent figures on car sales establish the fact that the purchasing power of a certain class has increased multiple times. The increasing gap between the rich and the poor makes it hard for social scientists to determine the overall rate of poverty.

These figures are, however, welcome for the automobile sector, which went through troubling times in the last three years. Several plants had to close down operations and lay off the staff. However, the life of the common man may remain the same as their purchasing power has shrunk. The government needs to take concrete steps for the welfare of the people.