Challenges Faced by Freelancers in Pakistan and Indonesia: Infrastructure, Payments, and Policy Gaps

Abstract

This study investigates the challenges faced by freelancers in Pakistan and Indonesia within the context of the global gig economy. Despite the increasing participation in online freelancing platforms, freelancers in these countries encounter significant obstacles related to infrastructure, payment systems, and policy gaps that hinder their income stability and long-term engagement in the digital economy. Utilizing a quantitative approach, the research employs structured surveys to collect data from freelancers in both nations, with a focus on the roles defined by the International Standard Classification of Occupations (ISCO-08) to categorize the freelance workforce. The study is grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT), extended to include constructs such as payment security, policy support, and communication skills, in order to analyse the behavioural intentions of freelancers in using global freelancing platforms. This paper introduces the Freelancer Resilience and Integration Model (FRIM), which explores how challenges such as unreliable internet access, payment delays, high transaction costs, and lack of legal protections influence freelancers' strategies and resilience within the gig economy. The research findings reveal statistically significant correlations between infrastructure reliability, ease of payments, and income stability among freelancers. Based on these findings, evidence-based policy recommendations are provided to improve infrastructure, streamline payment systems, and establish legal frameworks that offer greater protection and security for freelancers. The study emphasizes the importance of addressing these gaps to enhance the sustainability and resilience of freelancing in both Pakistan and Indonesia.