Time to focus on the ‘clean economy’

Pakistan’s economic discourse has long been dominated by familiar concerns: fiscal deficits, balance of payments pressures and the performance of traditional export sectors such as textiles and agriculture. Yet beneath these recurring challenges, a structural change is quietly reshaping the economy.

The country’s digital or “clean” economy – based on IT services, freelancers and a fast-growing ecosystem of content creators – is emerging as a reliable and scalable growth engine. In 2025, this transformation can no longer be dismissed as peripheral.

The most visible expression of this change is the rise of Pakistani content creators on global digital platforms, particularly YouTube. What started as isolated experimentation has grown into a structured ecosystem of digital businesses that earn foreign exchange, create jobs and project Pakistan’s cultural identity to a global audience. Alongside this is the strong performance of Pakistan’s IT and IT services exports, which have reached record levels and are now a key pillar of services trade.

Recent platform data shows that Pakistan hosts more than 95,000 YouTube channels with more than 10,000 subscribers – a threshold generally associated with sustainable monetization. More than 13,000 channels have crossed the 100,000 subscriber mark, while over 1,000 channels have more than one million subscribers. These figures reflect not just the popularity, but the scale of a growing digital workforce that is being integrated into global markets.

Every successful channel operates as a small business. Beyond the creator, there are editors, screenwriters, designers, animators, camera operators and social media managers. This ecosystem creates thousands of jobs, many of which are flexible, skill-based, and location-independent—characteristics that align well with Pakistan’s young workforce and limited domestic labor market.

One of the most striking aspects of Pakistan’s creative economy is its international reach. Industry analysis shows that over 60% of watch time on Pakistani YouTube content comes from abroad. This marks a decisive shift from domestic consumption to digital exports. Pakistani creators are increasingly producing content for a global audience while remaining naturally home-based, earning foreign currency income.

Certain species have been shown to be particularly effective. Food and culinary content attracts global viewers looking for authenticity. Travel and rural life vlogs feature landscapes and lifestyles rarely seen in international media. Educational explainers, lifestyle programming and family vlogs also perform strongly, especially on connected TV platforms where long-form content thrives.

Channels like Kitchen with Amna and Village Food Secrets illustrate how content with cultural roots can gain global appeal. Their success highlights a key advantage of the digital economy: high export potential with relatively low capital requirements. Authenticity, consistency and storytelling often matter more than production budgets.

The economic implications are significant. Conservative estimates suggest that a YouTube channel with over a million subscribers can earn anywhere from $50,000 to $200,000 per year, depending on audience niche, engagement and geography. With more than 1,000 such channels, the YouTube economy in Pakistan alone could generate $50-200 million annually in foreign earnings. Much of this income flows directly into Pakistan, supporting household incomes and contributing to the stability of the external account. Apart from the profits, the creators contribute to the soft power of Pakistan. Through humor, food, travel and social commentary, they showcase nuances of Pakistani society that challenge stereotypes and enhance international exposure in ways that traditional diplomacy often cannot.

While the creator economy is highly visible, it represents only one layer of a larger digital export story. Pakistan’s IT and IT services sector has achieved record-breaking performance in recent years. In the financial year 2024-25, IT and ITeS exports exceeded $3.8 billion, with monthly figures through 2025 repeatedly setting new records. This growth reflects sustained global demand rather than temporary spikes.

IT exports now account for a significant share of Pakistan’s service exports and have become one of the most reliable sources of foreign exchange. Pakistani companies provide software development, mobile and web applications, cloud services, cybersecurity solutions and business process outsourcing to clients across North America, Europe, the Gulf and Asia.

Freelancers are another critical pillar of this digital economy. Pakistan is among the leading providers of digital freelance services worldwide, with professionals involved in programming, design, content creation and digital marketing. Freelancing contributes hundreds of millions of dollars annually in foreign exchange and continues to expand as global demand for remote work increases.

From a macroeconomic point of view, the importance of digital exports is significant. Information technology and ICT services generate stable trade surpluses on the services account, helping to offset chronic deficits in goods trade. At a time when external financing options are limited, digital exports offer a relatively stable and scalable source of foreign income.

Another dimension often overlooked in discussions of the clean economy is its role in economic resilience and shock absorption. Unlike traditional export sectors, which are vulnerable to global commodity cycles, logistics disruptions and geopolitical tensions, digital exports are inherently more flexible. IT services, freelancing and content creation depend more on human capital and connectivity than physical supply chains.

During periods of currency volatility or import squeeze, digital exporters can continue to earn foreign exchange with minimal reliance on imported inputs. This structural advantage positions the clean economy as a stabilizing force in an otherwise fragile macroeconomic environment.

Equally important is the ability of the clean economy to reduce brain drain without restricting mobility. For decades, Pakistan has exported talent while importing value, as skilled professionals have migrated abroad in search of opportunities. Digital labor offers an alternative: global income without physical migration. Software engineers, designers, educators and creators can serve international markets while remaining rooted locally. This ensures that profits circulate within the domestic economy, strengthens household resilience and preserves human capital that would otherwise be lost.

Looking ahead, the potential scale of Pakistan’s clean economy is significant. If current trends persist, exports of IT and IT services could reach $8-10 billion annually by the end of the decade. Digital services will then stand alongside textiles as one of Pakistan’s top earning exports.

The creator economy is also poised for expansion. With continued platform development and improved monetization strategies, the number of Pakistani channels with more than 100,000 subscribers could exceed 20,000 by 2030. The combined revenue of creators – including sponsorships and merchandising – could approach $1 billion annually, with significant knock-on effects for employment and related services.

However, this feature will not happen automatically. Regulatory clarity remains limited, particularly regarding taxation and income classification for freelancers and creators. Uncertainty discourages formalization and full repatriation of proceeds.

Predictable, export-friendly policies are essential. Infrastructure gaps also remain. Reliable electricity, high-speed internet and efficient digital payment systems are prerequisites for sustainable development. While urban centers have improved, many rural and semi-urban areas remain under-connected.

Skill development presents another limitation. Although Pakistan produces a large number of graduates, shortages persist in advanced fields such as artificial intelligence, cloud computing, cyber security and data analytics. Content creators, meanwhile, often rely on self-taught skills that limit scalability. Structured training could significantly increase productivity and profits. To fully leverage the clean economy, policymakers must treat digital exports as a strategic priority, not a sideline. Stable tax regimes, simplified compliance, infrastructure investment and targeted skill development can accelerate growth. Educational institutions need to align curricula with global digital demand, while public-private partnerships can support incubation and international market access.

The author is a Mechanical Engineer