• Tuesday, December 10, 2019

Pakistan's Digital Gig Economy Growth Among World's Fastest

Discussion in 'Pakistan Economy' started by RiazHaq, Aug 12, 2019.

  1. RiazHaq

    RiazHaq SENIOR MEMBER

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    https://www.riazhaq.com/2019/08/pakistans-digital-gig-economy-growth.html

    Pakistan's digital gig economy growth is the fastest in Asia and fourth fastest in the world, according to digital payments platform Payoneer.

    [​IMG]
    Gig Economy Growth in Q2/2019. Source: Payoneer
    United States led gig economy growth of 78% followed by the United Kingdom 59%, Brazil 48%, Pakistan 47% and Ukraine 36%. Asia growth was led by Pakistan followed by Philippines (35%) , India (29%) and Bangladesh (27%).

    The rapid gig economy expansion of 47% in Pakistan was fueled by several factors including the country's very young population 70% of which is under 30 years of age coupled with improvements in science and technical education and expansion of high-speed broadband access. Pakistani freelancers under the age of 35 generated 77% of the revenue in second quarter of 2019.

    Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
    international jobs".

    [​IMG]
    Global Freelance Revenue By Age. Source: Payoneer.


    In Q2/2019, Asia cemented its status as a freelancer hub. Pakistan, Bangladesh and India, Philippines made it to the top 10 list, collectively recording 238% increase from Q2/2018.


    [​IMG]
    Online Labor Index. Source: Oxford Internet Institute

    As of 2017, Pakistan freelancers ranked fourth in the world and accounted for 8.5% of the global online workforce, according to Online Labor Index compiled by Oxford Internet Institute. India led with 24% share followed by Bangladesh 16%, US 12%, Pakistan 8.5% and Philippines 6.5%.

    Related Links:

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    South Asia Investor Review

    Digital BRI and 5G in Pakistan

    Pakistan EdTech and FinTech Startups

    State Bank Targets Fully Digital Economy in Pakistan

    Campaign of Fear Against CPEC

    Fintech Revolution in Pakistan

    E-Commerce in Pakistan

    The Other 99% of the Pakistan Story

    FMCG Boom in Pakistan

    Belt Road Forum 2019

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    Riaz Haq's Youtube Channel

    Viewpoint From Overseas Channel


    https://www.riazhaq.com/2019/08/pakistans-digital-gig-economy-growth.html
     
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  2. Shah Khalid

    Shah Khalid FULL MEMBER

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  3. Imran Khan

    Imran Khan PDF VETERAN

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    god damn and this we did without paypal
     
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  4. Ahmet Pasha

    Ahmet Pasha SENIOR MEMBER

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    Pakistan is the future
     
  5. Syed1.

    Syed1. SENIOR MEMBER

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    I can't understand why PayPal has rejected to come to Pakistan thus far.... heck they are even in lulloo punjo countries like Nigeria and Djibouti



    The current finance minister is American educated, he understands their system, can conduct himself in a manner which appeals to the Americans and can speak their language very well. I do not know why he doesn't hold a one on one meeting with CEO of PayPal and figure out what exactly Pak needs to do for them to get started here.
     
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  6. Kabira

    Kabira ELITE MEMBER

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    How is BD way ahead of Pakistan?
     
  7. Samlee

    Samlee SENIOR MEMBER

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    Paypal Is Not Here Due To Poor Anti Money Laundering Laws
     
  8. 1Paki$tani

    1Paki$tani FULL MEMBER

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    Also from what I know State Bank of Pakistan requires $2 million to obtain licence for anyone opening up similar service as Paypal.

    In another word it is killing off any local wanting to open a start up that can offer services similar to paypal. Why would a start up pay $2 million when a banking licence in places like Australia only costs $100k.
     
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  9. Kabira

    Kabira ELITE MEMBER

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    Doubt fees is the problem. Apparently paypal had some internal issues according to last report few months ago. FATF could also be problem.
     
  10. 1Paki$tani

    1Paki$tani FULL MEMBER

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    its a problem as it discourages investment from start ups. why should be seek paypal and why not encourage local start up with incentives.

    I have on personal level put serious consideration into starting something similar as I had identified this problem some 3 to 4 years ago. But due to other personal commitment I just abandoned it but I spoke to few people about it but the final nail was this initial fee in Pakistan.

    Its a major problem for start ups as something like paypal requires licences in multiple jurisdiction and in some cases in multiple states. Now imagine if you are only required to spend $2 million in Pakistan alone for for licence let alone the cost of equipment, employees and initial cost of designing and creating the whole back end systems etc.

    My idea as different from Paypal and it was to combine multiple remittance platform into one point which would enable targeting of cash economies. Something like Paypal relies mostly on banks which is a hurdle in many cash economies and in countries like Pakistan where only 20% people have bank accounts.
     
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  11. AsifIjaz

    AsifIjaz FULL MEMBER

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    If only paypal was there.. We would easily beat brazil and give uk a tough time to retain its ranking...
     
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  12. خره مينه لګته وي

    خره مينه لګته وي FULL MEMBER

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    Main Reason is -- Money Laundering & ineffective laws to deal with it.... No one would enter Pakistan until they are not satisfied about money laundering laws & they wont risk their company to be caught in a scandal like money laundering....
    __________________________________
    Secretary IT, Maroof Afzal, said that PayPal’s internal issues were the reason behind the company’s refusal to Pakistan. He said that security and anti-money laundering related laws have been tightened and there is no issue on Pakistan’s part now. (This is the only reason)

    Senator Mohammad Ateeq Sheikh said that the company is not coming to Pakistan due to lack of legal backing.

    https://www.propakistani.pk/

    ______________________________


    Thanks to PTI Govt & FATF -- These things will be sorted out & I hope to Hear a good news Regarding Paypal after we get out from Grey List ^__^
     
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