Small Business

The Pakistan Freelancers Association (PAFLA) has urged the government to maintain the 0.25% tax rate on foreign exchange earnings for the next decade to support the country's growing digital workforce. PAFLA also proposed state funding for capacity-building programs, the creation of regional freelancing hubs, and subsidies for international professional certifications. This request comes as freelancing export receipts reached USD 959 million between July and April of FY2025–26, marking a 49% increase from the previous year. Furthermore, PAFLA warned that imposing additional taxes on knowledge-based content creators or implementing complex tax mechanisms could drive freelancers toward informal financial channels, ultimately harming Pakistan's foreign exchange position.

Former FPCCI Vice President Tariq Haleem has warned that the upcoming FY2026–27 federal budget, drafted under stringent IMF conditions, may impose significant hardships on the public and business community by stifling economic growth. To mitigate these risks, he urges the government to abandon aggressive revenue collection tactics in favor of broadening the tax base, implementing a single-digit General Sales Tax (GST), and offering targeted incentives for the maritime and shipping sectors. Ultimately, Haleem advocates for a strategic shift toward economic self-reliance by reducing dependence on external debt and prioritizing policies that foster employment and productivity.

Pakistan's proposed power tariff reforms will stoke inflation by shifting IMF-mandated subsidy cuts to middle-class households, while cutting industrial prices 13-15% for export relief. Middle-class bills may rise 50%, with 100-300 unit users facing up to 76% hikes from new fixed charges; low-income households get PKR 400 fees. NEPRA's solar export rate cuts spark review to avert grid defection amid utility strains.

TikTok has launched a new self-serve advertising platform in Pakistan to help small and medium-sized businesses create and manage their own ad campaigns more easily and affordably. The TikTok For Business Ads Manager gives local entrepreneurs flexible tools, creative resources and performance targeting to reach new audiences without needing specialist expertise. The company says Pakistani SMBs can now better tap into TikTok’s highly engaged user base, building brand visibility at home and abroad while using flexible budgets and intelligent targeting to improve campaign results.

Pakistan has begun its new kinno export season, already shipping about 6,000 tonnes to the Middle East, Sri Lanka and the Philippines since Dec 1. Exporters aim to send 300,000 tonnes this season, targeting around $110m in earnings, up from 250,000 tonnes worth $95m last year. Despite a bumper crop of 2.7m tonnes, exports remain about 50pc below levels five years ago due to limited research and reliance on older citrus varieties, though proposed government-backed plans could lift annual kinno export revenues to $400m within five years

PM Shehbaz Sharif approved the AI-powered Womenpreneurship Platform to boost women in the SME sector and reviewed SMEDA's reforms.SMEDA has opened new regional offices and formed a new board of experts. The PM ordered a clear timeline for the reforms. Finally, SMEDA/TDAP will represent Pakistan at BIOPROM-2025 in Russia.

The Ufone-Telenor merger has transformed Pakistan's telecom sector into a three-player market, creating a near two-horse race. The new entity, MergeCo (≈32.8% share), is now a powerful rival to the market leader, Jazz (≈43%). This consolidation is expected to spark intense competition, forcing both giants to invest heavily in 4G and 5G networks. Customers are set to benefit from better network quality and more competitive pricing, while Zong (≈24.1%) adapts as the third major competitor.

Alibaba.com has signed an MoU with Pakistan’s Ministry of IT & Telecom (MoITT) through Ignite to strengthen the digital economy, support SMEs and startups, and expand global e-commerce opportunities. The partnership will offer AI-powered tools, B2B training, and trade show initiatives to boost exports and enhance Pakistan’s role in digital trade.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal has launched "Pakistan One," a nationwide business plan competition designed to transform youth creativity into globally competitive ventures. The initiative, part of the new URAAN five-year plan, aims to engage over 10,000 young entrepreneurs and will award a record-breaking $5 million Grand Prize to promising ventures. The program seeks to shift Pakistan from a job-seeking to a job-creating economy by focusing on high-growth sectors like IT, agri-tech, and sustainable manufacturing to boost the country's stagnant export figures.