Small in size, big in survival

Pakistan’s gig economy

The recently published Labour Force Survey (LFS) 2024–25 includes, for the first time, detailed data on gig work in Pakistan, revealing a labour market still dominated by physical work and survival strategies rather than gig economy.

For the first time, Pakistan now has official data on gig work. The LFS 2024–25 provides a comprehensive snapshot of platform-mediated employment, offering policymakers, researchers, and the public a much-needed evidence base. This new data is significant because, until now, the narrative around Pakistan’s gig economy was largely anecdotal, focused on freelancing success stories and digital exports. The survey shows the gig economy is emerging but fragile. It shows that gig work constitutes only 2.9 percent of overall employment, while 97.1 percent of workers remain engaged in conventional physical jobs. This first glimpse into the structure of gig work provides a reality check on the scale and composition of platform-based employment in the country.

The data highlights that online platform work is still rare and slightly male-dominated. Among the small segment of online gig workers, 3.0 percent are men compared to 2.5 percent women. While the difference is modest, it points to persistent gender inequalities in access to technology, digital skills, and labour market participation. Importantly, this confirms that Pakistan’s gig economy is still nascent in digital terms, and most platform work remains physical rather than knowledge-based or remote. The LFS data finally allows us to move beyond assumptions and anecdotes to understand the real scope of gig employment.

Sectoral insights from the survey reveal that gig work is primarily service-oriented and survival-driven. According to the LFS 2024–25, the largest shares of gig workers are in teaching (17.8 percent), taxi services (16.8 percent), selling goods (16.8 percent), freelancing (14.3 percent), and delivery services (12.2 percent), with smaller shares in content creation (YouTube, TikTok, vlogging 5.6 percent), medical/healthcare (4.2 percent), on-location services (4.7 percent), and renting services (2.8 percent). This composition underscores that the gig economy in Pakistan is not a high-tech, Silicon Valley-style sector but a labour market embedded in urban services, informal trade, and education-based work.

The gender dimension of gig work is particularly revealing. Men dominate mobility-intensive sectors such as taxi services (20.9 percent) and delivery services (14.9 percent), while women are concentrated in teaching (39.8 percent) and selling goods (21.9 percent). This indicates that gig platforms expand women’s access to income but largely within socially acceptable and home-based roles. The data suggests that while digital platforms may open new avenues for women, they are still shaped by traditional social norms, reflecting both opportunity and constraint.

Policymakers, researchers, and platform operators now have the first official evidence to design interventions that balance flexibility with security, digital access with inclusion, and urban opportunity with regional equity. This includes legal recognition of gig workers, gender-sensitive inclusion programs, expansion of digital access, provincial infrastructure investments, and mechanisms for social protection. By addressing these gaps, Pakistan can move from a gig economy of necessity toward one that offers stability, security, and real opportunities for all segments of the workforce.

Provincial data provides the first official evidence of regional disparities. Sindh leads in gig work participation at 3.4 percent, followed by Khyber Pakhtunkhwa (2.9 percent), Punjab (2.8 percent), and Balochistan (1.2 percent). Male participation mirrors this trend, with Sindh at 3.5 percent, Punjab 3.0 percent, Khyber Pakhtunkhwa 2.6 percent, and Balochistan 1.2 percent. For female gig workers, Khyber Pakhtunkhwa surprisingly has the highest share at 4.0 percent, followed by Sindh (2.6 percent), Punjab (2.2 percent), and Balochistan (1.2 percent). This is the first-time official statistics allow us to understand how digital and platform-based work varies across provinces, highlighting the role of urbanisation, infrastructure, and local economic opportunities.

The survey also captures the growing role of subsidiary or secondary gig work. Among workers with subsidiary employment, 10.6 percent are engaged in gig activities, with women more active online than men (15.0 percent vs. 9.8 percent). Teaching and selling goods dominate at 22.3 percent each, while taxi services account for 10.8 percent, delivery for 10.1 percent, freelancing for 9.2 percent, and digital content creation (YouTube, TikTok, vlogs) for 11.4 percent. These statistics confirm that gig work often functions as a coping mechanism, a way for workers to supplement household income amid inflation, unemployment, and limited formal opportunities.

The first-time data also underscores the policy gap. Most gig workers operate outside formal labour protections, lacking minimum wage guarantees, social security, health insurance, or pensions. The state’s focus on promoting freelancing and IT exports does not address the reality that the majority of gig work is physical and urban. Without regulation, protection, and inclusive digital policies, the gig economy risks institutionalising informality rather than fostering sustainable livelihoods. The LFS 2024–25 is crucial in highlighting the scale of these gaps and providing an evidence base for intervention.

This historic data finally allows Pakistan to understand the true nature of its gig economy. It shows a labour market that is small in size but vital in function, reflecting resilience and adaptation in the face of economic pressures. Gig work in Pakistan is less about high-tech digital opportunity and more about survival strategies whether it’s a taxi driver navigating fuel hikes, a woman tutoring online from home, or a delivery worker supplementing meagre wages.

Policymakers, researchers, and platform operators now have the first official evidence to design interventions that balance flexibility with security, digital access with inclusion, and urban opportunity with regional equity. This includes legal recognition of gig workers, gender-sensitive inclusion programs, expansion of digital access, provincial infrastructure investments, and mechanisms for social protection. By addressing these gaps, Pakistan can move from a gig economy of necessity toward one that offers stability, security, and real opportunities for all segments of the workforce.