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The ‘Net economy’ | The Express Tribune

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The ‘Net economy’ | The Express Tribune



KARACHI:

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 shift is quietly reshaping the economy.

The country’s digital or “net” economy – anchored in IT services, freelancing, and a rapidly expanding content creator ecosystem – is emerging as a credible and scalable engine of growth. In 2025, this transformation can no longer be dismissed as peripheral.

The most visible expression of this shift is the rise of Pakistani content creators on global digital platforms, particularly YouTube. What began as isolated experimentation has evolved into a structured ecosystem of digital enterprises that earn foreign exchange, create employment, and project Pakistan’s cultural identity to global audiences. Running parallel to this is the strong performance of Pakistan’s IT and IT-enabled services exports, which have reached record levels and now form a key pillar of services trade.

Recent platform data indicates that Pakistan hosts more than 95,000 YouTube channels with over 10,000 subscribers – a threshold generally associated with sustainable monetisation. More than 13,000 channels have crossed the 100,000-subscriber mark, while over 1,000 channels boast more than one million subscribers. These figures reflect not merely popularity, but the scale of a growing digital workforce embedded in global markets.

Each successful channel functions as a small enterprise. Beyond the creator, there are editors, scriptwriters, designers, animators, camera operators, and social media managers. This ecosystem is generating thousands of jobs, many of them flexible, skill-based, and location-independent – characteristics well aligned with Pakistan’s youthful labour force and constrained domestic job market.

One of the most striking aspects of Pakistan’s creator economy is its international reach. Industry analysis suggests that over 60% of watch time on Pakistani YouTube content originates from outside the country. This marks a decisive shift from domestic consumption to digital exports. Pakistani creators are increasingly producing content for global audiences while remaining physically based at home, earning revenue in foreign currency.

Certain genres have proven particularly effective. Food and culinary content attract global viewers seeking authenticity. Travel and rural-life vlogs showcase landscapes and lifestyles rarely visible in international media. Educational explainers, lifestyle programming, and family vlogs also perform strongly, especially on connected television platforms where long-form content thrives.

Channels such as Kitchen with Amna and Village Food Secrets illustrate how culturally rooted content can achieve global resonance. 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 one million subscribers can earn between $50,000 and $200,000 annually, depending on niche, engagement, and audience geography. With more than 1,000 such channels, Pakistan’s YouTube economy alone could be generating $50-$200 million per year in foreign revenue. Much of this income flows directly into Pakistan, supporting household incomes and contributing to external account stability. Beyond earnings, creators contribute to Pakistan’s soft power. Through humour, food, travel, and social commentary, they present nuanced portrayals of Pakistani society that counter stereotypes and enhance international visibility in ways traditional diplomacy often cannot.

While the creator economy is highly visible, it represents only one layer of a broader digital export story. Pakistan’s IT and IT-enabled services sector has posted record performance in recent years. In fiscal year 2024-25, IT and ITeS exports crossed $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 services exports and have become one of the most reliable sources of foreign exchange. Pakistani firms 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 form another critical pillar of this digital economy. Pakistan is among the world’s leading suppliers of freelance digital services, with professionals engaged 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 grows.

From a macroeconomic perspective, the significance of digital exports is substantial. IT and ICT services have consistently generated trade surpluses within the services account, helping 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 earnings.

Another dimension often overlooked in discussions on the net 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 agile. IT services, freelancing, and content creation depend primarily on human capital and connectivity rather than physical supply chains.

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

Equally important is the net economy’s potential to reduce brain drain without restricting mobility. For decades, Pakistan has exported talent while importing value, as skilled professionals migrated abroad in search of opportunity. Digital work 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 earnings 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 net economy is considerable. If current trends persist, IT and IT-enabled services exports could reach $8-10 billion annually by the end of the decade. Digital services would then stand alongside textiles as one of Pakistan’s top export earners.

The creator economy is also poised for expansion. With continued platform growth and improved monetisation strategies, the number of Pakistani channels with over 100,000 subscribers could exceed 20,000 by 2030. Combined creator revenues – including sponsorships and merchandising – could approach $1 billion annually, with significant spillover effects for employment and allied services.

However, this potential will not be realised automatically. Regulatory clarity remains limited, particularly around taxation and income classification for freelancers and creators. Uncertainty discourages formalisation and full revenue repatriation.

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

Skill development presents another constraint. Although Pakistan produces a large number of graduates, shortages persist in advanced areas such as artificial intelligence, cloud computing, cybersecurity, and data analytics. Content creators, meanwhile, often rely on self-taught skills that limit scalability. Structured training could significantly raise productivity and earnings. To fully harness the net economy, policymakers must treat digital exports as a strategic priority rather than a side activity. Stable tax regimes, simplified compliance, infrastructure investment, and targeted skill development can accelerate growth. Educational institutions must align curricula with global digital demand, while public-private partnerships can support incubation and international market access.

The writer is a Mechanical Engineer



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RBI Proposes 4 Major Changes In Kisan Credit Card Scheme: What Beneficiaries Must Know

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RBI Proposes 4 Major Changes In Kisan Credit Card Scheme: What Beneficiaries Must Know


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RBI releases draft to revise Kisan Credit Card Scheme, standardizing crop cycles, extending loan tenure to six years, and aligning credit limits with cultivation costs.

From Crop Cycles To Loan Tenure: 4 Key Changes In RBI’s KCC Proposal

From Crop Cycles To Loan Tenure: 4 Key Changes In RBI’s KCC Proposal

Kisan Credit Card Scheme: The Reserve Bank of India (RBI) has released draft directions to revise the Kisan Credit Card (KCC) Scheme, aiming to expand coverage, streamline operations, and align credit norms with evolving agricultural needs.

Standardized Crop Cycles And Extended Loan Tenure

As outlined in the draft, crop seasons have been standardized to introduce uniformity in loan sanctioning and repayment schedules. Short-duration crops will now be treated under a 12-month cycle, while long-duration crops will follow an 18-month cycle.

Example:

A farmer growing paddy or wheat (harvested in a few months) will follow a 12-month loan cycle.

A farmer growing sugarcane (which takes 12–18 months) will get an 18-month cycle.

To better align loan tenure with these crop cycles, especially for longer-duration crops, the overall tenure of the KCC facility has been extended to six years. The move is expected to provide farmers with greater flexibility in repayment and reduce rollover pressures.

Example:

If a farmer growing sugarcane faces a bad monsoon in Year 2, he doesn’t have to rush repayment immediately. The 6-year window gives more breathing space and reduces pressure to take fresh loans to repay old ones.

The draft directions apply to Commercial Banks, Small Finance Banks, Regional Rural Banks, and Rural Co-operative Banks, indicating a system-wide implementation once finalized.

Drawing Limits Linked To Cost Of Cultivation

The RBI has proposed aligning drawing limits under the KCC scheme with the scale of finance for each crop season . This adjustment aims to ensure that farmers receive credit in line with the actual cost of cultivation, addressing concerns around under-financing.

Example:

If growing cotton in a district costs Rs 60,000 per acre (as per agriculture department data), banks will align KCC limits accordingly — instead of giving a lower, outdated amount like Rs 40,000.

In addition, the draft expands eligible components under the KCC framework. Expenses related to technological interventions—such as soil testing, real-time weather forecasts, and certification for organic or good agricultural practices—have been included within the existing 20% additional component earmarked for repairs and maintenance of farm assets .

Example:

If a farmer wants to:

  • Test soil before sowing
  • Subscribe to real-time weather alerts
  • Get organic farming certification

These costs can now be covered under KCC instead of paying from pocket.

What Is Kisan Credit Card Scheme?

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedures to the farmers for their cultivation and other needs.

The KCC scheme was introduced in 1998 for the issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.

KCC covers post-harvest expenses, produce marketing loan, consumption requirements of farmer households, working capital for maintenance of farm assets and activities allied to agriculture, investment credit requirement for agriculture and allied activities.

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Four ports under construction in Andhra Pradesh, Centre tells Lok Sabha – The Times of India

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Four ports under construction in Andhra Pradesh, Centre tells Lok Sabha – The Times of India


The Centre is pushing port-led infrastructure expansion in Andhra Pradesh, with four ports currently under construction, even as it steps up nationwide port modernisation and efficiency measures.As per information shared on Friday in Parliament, the ports under construction in Andhra Pradesh are Mulapeta Port (formerly Bhavanapadu Port) in Srikakulam district, Machilipatnam Port in Krishna district, Ramayapatnam Port in SPSR Nellore district, and Kakinada SEZ Port in Kakinada district.The government said it is undertaking measures such as mechanisation of berths and terminals, digitalisation and logistics integration, new berth construction, capital dredging for larger vessels, and connectivity upgrades across road, rail and waterways.It has also rolled out initiatives including elimination of manual forms, direct port delivery and entry, container scanners, e-delivery of documents and payments, RFID-based gate automation and Maritime Single Window platform SagarSetu 2.0 to cut vessel turnaround time.Two new ports — Vadhavan Port in Maharashtra and Galathea Bay Port in Andaman and Nicobar Islands — have been notified as major ports. At present, 12 major ports operate under the central government, while 68 other-than-major ports are under state governments.Under the Sagarmala scheme, financial assistance is provided across five pillars including port modernisation, connectivity, port-led industrialisation, coastal community development and inland water transport.The government has also launched HaritSagar green port guidelines, the Green Tug Transition Programme (GTTP), and the Cruise Bharat Mission to promote sustainability and cruise tourism.The information was given by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal in a written reply to the Lok Sabha.At present, 12 major ports operate under the administrative control of the central government, while 68 operational other-than-major ports are under state governments.The government said it has launched multiple national programmes for port development, expansion and upgradation. Under the Sagarmala scheme, financial assistance is provided under five pillars — port modernisation, port connectivity, port-led industrialisation, coastal community development, and coastal shipping and inland water transport.Green and sustainability-linked initiatives have also been introduced. The government has launched HaritSagar green port guidelines to promote environment-friendly port ecosystems and initiated the Green Tug Transition Programme (GTTP) to shift harbour tugs towards greener fuel alternatives.Further, the Cruise Bharat Mission has been launched to prioritise cruise tourism development across the country.



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Anthropic At $380 Billion Surpasses India’s Top IT Firms Combined As AI Fears Rock Stocks

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Anthropic At 0 Billion Surpasses India’s Top IT Firms Combined As AI Fears Rock Stocks


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Anthropic’s AI tools have triggered a sharp decline in Indian IT stocks like TCS, Infosys, Wipro, eroding Rs 3,11,873 crore in market value.

Anthropic's valuation surpassed combined value of total IT firms in India

Anthropic’s valuation surpassed combined value of total IT firms in India

The entire Information Technology (IT) industry in India is battering with the existential threat, which comes on the heels of rising generative AI, posing doubts over the viability of their business model.

Stocks of the IT industries, including Tata Consultancy Services (TCS), Infosys, Wipro, etc., hit brutally over the past week. This was triggered with the launch of new AI tools by Anthropic’s Claude for Cowork, which is like an office teammate helping the user to do tasks such as file sorting, reading legal drafts, etc.

Anthropic’s Valuation vs Nifty IT Index

Anthropic’s phenomenal valuation rise has surpassed the combined value of India’s top IT firms. Standing at a valuation of $380 billion, the US-based AI company has eclipsed India’s Nifty IT index, whose market cap was at $296.4 billion by the time of writing this report.

Investors are accelerating their exit from technology stocks as concerns intensify that advanced artificial intelligence tools could disrupt core segments of the global software and IT services industry.

This week alone, TCS, Infosys and HCL Technologies dragged 9-11 per cent.

The sharp correction has wiped out substantial investor wealth. Based on intraday lows, the combined market capitalisation of the top five domestic IT companies has eroded by nearly Rs 3,11,873 crore this week.

TCS emerged as the biggest laggard, losing Rs 1,28,800 crore in market value, with its market capitalisation slipping to Rs 9,35,253 crore. The fall also pushed it to the fifth-most valued listed company from the fourth position.

Infosys has seen its market capitalisation shrink by Rs 91,431 crore following a 15 per cent decline this week. HCL Technologies has lost Rs 53,647 crore in market value over the past five trading sessions. Wipro and Tech Mahindra have also recorded declines, with their market capitalisations falling by Rs 22,762 crore and Rs 15,233 crore, respectively, during the same period.

Company Name Mcap ($Billion)
Tata Consultancy Services 107.4
Infosys 61.2
HCL Technologies 43.6
Wipro 24.8
Tech Mahindra 16.6
LTIMindtree 16.7
Persistent Systems 9.5
Oracle Financial Services Soft 6.4
Coforge 5
Mphasis 5.2
Total 296.4
Source: Bloomberg

Anthropic’s Recent Funding Round

Anthropic has recently raised $30 billion in Series G funding led by GIC and Coatue, valuing Anthropic at $380 billion post-money, as announced by the company in the press release.

The investment will fuel the frontier research, product development, and infrastructure expansions that have made Anthropic the market leader in enterprise AI and coding.

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