Passive Income ideas for Pakistan and Why is it important in 2020

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Passive income in PakistanWhat is Passive income and how to make it in Pakistan?

Well, before diving in the ocean of reasons why passive income in Pakistan is important, I would like to shed some light on passive income first. The passive income means the amount of money you are earning while you are sleeping or on vacations. Passive income is different from your active income and it’s a good approach if you wish to focus on secondary income. The first rule of life is to focus on multiple money streams and secondary income could be your second stream of money which could be later scaled up.

There is a reason behind the saying “if you want to get rich, increase your sources of income” The reason I am writing this article is because a lot of people in Pakistan specially those who have just graduated have no idea of about secondary income and they just enjoy the amount of money they are making from their job.


And that is exactly what I don’t prefer to do. Everyone in there in the ’20s should be thinking about passive income because that is going to stick with them for a longer period.

Why passive income in Pakistan is important?

Aint getting what I have mentioned above? No worries, Let me put it this way, what will happen if you are fired or you just decide to leave your job and follow your dreams? the harsh reality is that the money will stop floating in your bank account and you would survive on the reserves which will eventually be consumed in a month if not in days. So for this particular reason, smarter people rely on secondary income. there are multiple ways of earning a secondary income and I will be mentioning them below shortly.

But talking about the reasons for secondary income I have fought my case well up there. Talking further about this approach, assume that you have a good lucrative job and you are making good bucks out there but the reality is that you cannot be employed at two companies to double your monthly income but with passive income, you can scale it up whenever you want. So f

Can extra income make you rich?

Getting rich is a subjective term but yes extra income can help you overcome your fears, stress and it will help you earn a better lifestyle especially in Pakistan. So the essence here is to start working on your secondary income and try to match it with 50% of your active income in the beginning.

How to make passive income in Pakistan in 2019 and 2020?

So let’s get to work now. There are multiple ways of making extra bucks while you are employed and it also depends on how much of a risk-taker you are. For me, I would say that if I have 100 rupees, I will only take a risk of 50% of my portfolio. Well, that’s your call and without talking further about the approach and perspective, I would dive directly into how someone can add another source of income in Pakistan or earning a passive income in Pakistan.

The easiest way of making extra income is to invest in any venture or funds or the stock market. Yes, we know that the stock market and investments are subject to risk and loss but that is the way people make money or you could say double the money. Although the objective should never be doubling the money but earning good returns.

Making Extra bucks from Stock Exchange or mutual Funds

So if you are just new to this and eagerly wants to make more income, you could start by saving at least 35% of your active income for a year and at the end of the year, you should invest 50% of that in monthly or daily dividend funds and rest of the 50% in stock market funds by splitting between medium risk and high risk  depending upon the market situation.

The advantage of daily/monthly dividend funds is that your capital is always safe and you are making money on the top of it while with the stock fund your money could be increased by 12% to 30% (again this profit is subjected to market risk and situation)

To make things easier I would recommend something that I was introduced to a few months back. There is an online website ‘iSave‘ which is operated by MCB Arif Habib and it gives you ease to buy, sell or research on different funds and their history. (this is not a sponsored post)

But the reason for sharing iSave is because I learned a lot about stocks and they give you diverse options to invest including mutual funds, dividend funds, etc

Making extra income through freelancing

Another way that we all are aware of is to make money from freelancing which is a good addon over the active income but this money should directly go to your savings by acquiring a savings bond or something similar which gives you good returns with the lowest market risk. For example, a Defence saving certificate is a good option if you could lock your payment for up to 5 years. They promise good returns depending upon the current Kibor rate.

Making Money Online in Pakistan 

Well, if you are aware of the online world than I would say that it’s easy to make money online in Pakistan but trust me it’s not that easy and it requires a lot of struggle and time to reach a point where you start making money. But for the sake of information, I would say you can make money by making youtube videos, running a blog, becoming an Instagram influencer.

BTW, if you succeed to be an Instagram influencer, you would be getting free food, free clothes freebies for the rest of your life.😃😃😃

Making Money from youtube in Pakistan

There is another way to make some passive income in Pakistan is to open up a youtube channel and make videos as per your skills but that is quite a time-consuming thing to do but you can give it a shot. Here is a complete guide on how you can make money from Youtube in Pakistan

Making Money through Investing in ventures

So let’s suppose, you have been saving up on money or you have X amount of money on which you are willing to take a risk, you could just invest that amount in any of the business owned by your close friends or family. The reason behind this type of investment is that these investments are not too huge and you can invest in multiple ventures to increase your sources of income.

Real Estate Income

This type of income has a medium scale risk but it could give you a good return. We all know one thing for sure and that is “Property never devaluates”. So if you are much of a risk-taker, you could team up with your friends or family to collectively invest in real estate or rental properties.


The basic idea of mentioning all of the above is that you can never multiply your active income unless you have a passive stream of income which you could scale up whenever you want. It’s easy to invest when your investment is coming from the profits over your capital.

Do remember one thing, you should never put all the eggs in the same basket. Multiple money streams mean more comfort and a comfortable future. One could easily retire at an early age and follow his/her dreams if they are able to match 70% of their passive income to active income.

This is a nice tutorial if you wish to read more about investments. And for the market’s situation, you can check these stories

A tip from reddit!

I was just talking about this topic with a friend who lives in Pakistan last night. I had asked him to work as a VA (virtual assistant) for my American blog/business. I then asked about the blogging scene there and he explained many are blogging about their life, food reviews, etc. This is a very hard market to break into unless you already have a large following. It’s also less profitable as there is less affiliate marketing opportunities and it would be harder to sell your own physical product or e-courses on the subject. Instead, why not reverse engineer how you use the internet. I use it to search for questions I need answered, or to find tutorials/DIY videos. You find the tutorial or answer to your question and you often click the link in the article to buy the service needed or product/materials needed. By doing this can affiliate market and even sell courses on your topic/niche.

An example would be say a med student. They can give advice on applications, study tips, sell “study guides” digitally, affiliate market for supplemental study materials and other courses. Even create their own courses. Lots of various articles to write answering various questions someone thinking about that path or on that path may have. Linking to YouTube videos in the blog articles would drive traffic and opening a FB group for med students to support one another would also help grow their audience. It’s all about giving value FIRST before you ASK for sales. Show your value and knowledge and gain their trust. This path is alot of work upfront before it can become more “passive”

Another option for traditional passive income if you are a creative is digital sales. An example is selling vectors and raster files on creative market platforms. I tested this a while back and posted 19 vector images on a platform and left it. I never even log in and still make 100-200 $ (US) from that a week! Research what is trending. Find keywords with high search volume and low competition and it’s much easier to break into the market.

The opportunities are out there but I think sometimes things just need to be reversed engineered instead of randomly picking what sounds “fun”. Find your target audience (those with extra income), what are their hobbies/interests, and what can you offer that will be easy to affiliate market with and sell digital products about. Then you have your “niche”. And of course, start building the email list from day one! Opt ins are KEY! Free value! Give before you ask!

I also agree with multiple income streams! Do not rely on ad revenue alone as it’s just not enough. Esp if your demographic is not US-based (as it will pay much less RPM). Ads, affiliate marketing, digital products, e courses, brand deals, all together will add up over time.

Important Update: In the wake of Coronavirus crisis Government of Pakistan has announced a care package by the name of Imdad Insaf Package.

Maiza Razzaq
Maiza Razzaq
Digital Content Strategist and Blogger

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