ISLAMABAD: Pakistani freelancers earned a record $557 million during the first half of the current fiscal year, state media reported on Sunday, saying the achievement reflected the country’s emergence as a global hub in software development and e-commerce. 

Pakistan’s IT and IT-enabled services sector has emerged as one of the country’s fastest-growing sources of foreign exchange, generating over $3 billion annually and employing roughly a million freelancers in addition to formal software firms.

“Pakistani freelancers earned a valuable 557 million dollars in foreign exchange during the first half of the current fiscal year, setting a historic record,” state broadcaster Radio Pakistan reported. 

It described the achievement as a “significant milestone,” noting that it was a 58 percent increase in foreign exchange earnings compared to the same period last year.

The state media said that rapid growth in freelancers’ earnings highlighted Pakistan’s prowess as a hub of software development, digital marketing, graphic design and e-commerce. 

“Improved facilitation, targeted training programs and a supportive ecosystem have contributed to the rapid growth of the freelancing economy in the country,” Radio Pakistan said. 

The state media said Pakistan hosts over 170 venture capital-backed startups that have a combined enterprise value exceeding $4 billion.

It said the pace of Pakistan’s venture capital and startup ecosystem growth has outperformed several international markets such as India, Dubai and New York. 

Pakistan has increasingly relied on technology exports over the years, including software development, outsourcing and freelance services, to generate foreign exchange. 

The development takes place as Islamabad targets sustainable economic growth driven by exports as Pakistan’s economy adjusts under structural reforms and tight import controls following a balance-of-payments crisis.