Is influencer marketing legal in Pakistan?

Influencer marketing in Pakistan is booming across Instagram, TikTok, YouTube, and X. But is it legal—and what rules actually apply? This guide explains the legal landscape, disclosure obligations, restricted categories, taxation, and best practices for brands, agencies, and creators.

Quick answer: Yes, influencer marketing is legal in Pakistan if you follow existing advertising, consumer protection, competition, sectoral, and tax rules. There is no single “influencer law,” but several laws and regulators apply.

Snapshot: The Legal Framework for Influencer Marketing in Pakistan

Influencer marketing in Pakistan sits at the intersection of several laws and regulators. While there isn’t a single statute titled “Influencer Marketing Law,” the following frameworks typically apply:

Consumer and competition law: Prohibitions on deceptive marketing and misleading claims under competition and consumer protection regimes.
Advertising and media: Broadcast and decency rules for electronic media; platform policies for social media.
Sector-specific regulation: Special rules for health products, tobacco, alcohol, finance, housing, and other sensitive categories.
Electronic crimes and online content: Rules for unlawful online content and takedowns.
Intellectual property: Copyright, trademarks, personality rights, and fair use/licensing.
Tax: Income tax and potential provincial sales tax on services for advertising and related services.
Contract and consumer law: Enforceable terms, returns policies, and remedies in e-commerce or social commerce deals.

In short, influencer marketing is treated like advertising—and must be honest, fair, transparent, and compliant with category-specific rules.

Is Influencer Marketing Legal in Pakistan? The Short Version

Yes. Influencer marketing is lawful, provided it’s compliant with:

Transparency: Disclose paid partnerships, gifts, and affiliate relationships.
Truthfulness: Avoid false, misleading, or unsubstantiated claims.
Category restrictions: Don’t promote prohibited or illegal products and follow special rules in regulated sectors.
Taxes: Register and pay applicable taxes on influencer income and services.
IP and privacy: Use licensed content and respect others’ rights.

Brands and creators that follow these principles can safely run legal influencer campaigns in Pakistan.

Disclosures and Transparency: How to Label Paid Content

Transparency is central to lawful influencer marketing. Even without a standalone “endorsements” regulation, Pakistani law prohibits deceptive marketing, which covers undisclosed material connections between a brand and a creator.

What should you disclose?

Paid partnerships and sponsored posts.
Gifts, PR packages, and barter (e.g., free stays, free meals).
Affiliate links and promo codes that pay commission.
Employee/ambassador relationships or equity stakes.

How and where to disclose

Use clear, upfront labels such as “Paid Partnership with [Brand],” “Sponsored,” or “#ad.” Consider Urdu equivalents for local audiences.
Place the disclosure at the beginning of the caption or within the first lines—don’t bury it under a “See more.”
In Stories/Reels, use on-screen text and spoken disclosure. For long videos, disclose near the beginning and whenever the product is discussed.
Ensure the disclosure is conspicuous on all platforms and formats, including live streams and podcasts.
Use platform tools like “Paid Partnership” or “Branded Content” where available—these are helpful but should not replace a clear disclosure in your own words.

Good disclosure builds trust, reduces legal risk, and improves campaign performance by aligning audience expectations.

Truthful Claims and Substantiation

Influencer content is advertising. Any product claims must be truthful, not misleading, and supported by evidence before posting. This is critical for:

Performance claims (e.g., “fastest,” “longest-lasting,” “guaranteed results”).
Health and wellness claims (e.g., weight loss, immunity, therapeutic benefits).
Environmental claims (e.g., “eco-friendly,” “biodegradable,” “net zero”).
Price and savings (e.g., “lowest price,” “50% off,” “limited-time deal”).
Comparative claims versus competitors.

Creators should request substantiation from brands and keep records (briefs, approvals, test results). Avoid absolute guarantees; use accurate qualifiers and avoid fine print that contradicts the main message.

Restricted and High-Risk Categories in Pakistan

Some product categories carry strict rules or outright prohibitions. Brands and creators should screen campaigns in these areas:

1) Tobacco and nicotine products

Generally prohibited from advertising and promotion, including online. Avoid direct or indirect promotion, brand stretching, or surrogate ads.

2) Alcohol

Advertising is prohibited. Endorsements or indirect promotion can lead to penalties.

3) Pharmaceuticals and health products

Prescription-only medicines cannot be advertised to the general public.
Over-the-counter products, supplements, cosmetics, and devices must follow labeling and claim restrictions. Avoid therapeutic claims without regulatory support.

4) Financial services and investments

Be cautious promoting trading apps, forex, crypto, lending, and investment schemes. Licensing and approvals may be required for providers; unlicensed promotions can be unlawful.
Avoid unrealistic returns or guarantees; include risk disclaimers approved by the brand’s compliance team.

5) Real estate and housing schemes

Do not promote unapproved or illegal housing societies. Verify approvals and NOCs. Misleading claims about possession dates or returns can attract enforcement.

6) Gambling, betting, and lotteries

Gambling and betting are illegal. Avoid direct or indirect promotion, including offshore sites targeting Pakistani users.

7) Children’s products and infant formula

Infant formula and breastmilk substitutes are subject to strict marketing restrictions—avoid public promotion.
Marketing to children must be especially cautious; avoid unsafe, exploitative, or age-inappropriate content.

8) Sensitive content and morality

Comply with decency and cultural norms. Avoid obscene, hateful, or blasphemous content.

When in doubt, get legal clearance from the brand or agency—especially for health, finance, and real estate campaigns.

Decency, Minors, and Platform Policies

Beyond the law, platforms and broadcast bodies enforce content standards. Keep in mind:

Use age gating for adult or risky topics where appropriate.
Get parental consent when featuring minors; avoid unsafe challenges or stunts.
Follow platform branded content rules, community guidelines, and ad policies for TikTok, Instagram, YouTube, and Facebook.
If content is repurposed for TV/radio, observe broadcast decency standards and time-band restrictions.

Remember, platform takedowns can occur even if your content complies with local laws.

Intellectual Property and Music Rights

Using third-party content without permission is risky. Influencers and brands should:

Use licensed or platform-cleared music only, especially for commercial use. Creator music libraries often limit business usage—check terms.
Get permission for logos, brand names, or copyrighted visuals not covered by fair use.
Respect trademark law: avoid confusing endorsements or passing off.
Secure model releases when featuring people and location permissions for private property.
Define IP ownership and usage rights in contracts: who owns content, where it can be used, for how long, and in which territories.

Contracts and Consumer Protection

Written agreements are essential for compliance and clarity. A solid influencer contract should include:

Scope and deliverables: content formats, quantity, timelines, and approval process.
Disclosure requirements: clear labeling and adherence to non-deceptive marketing rules.
Claims control: brand to provide substantiation; creator to avoid unapproved claims.
Fees, invoicing, and taxes: specify gross/net, withholding, and sales tax where applicable.
Usage rights: organic posts only or paid ads whitelisting, duration, and territory.
Exclusivity and conflicts: competing brand blackout periods.
Morality and takedown clauses: for legal or reputational issues.
Dispute resolution: governing law, jurisdiction, or arbitration.

For social commerce (selling via DMs or live streams), ensure clear pricing, delivery timelines, return/refund policies, and complaint handling. Misrepresentations can trigger consumer complaints, chargebacks, and enforcement.

Taxes, Business Setup, and Cross-Border Payments

Influencer income in Pakistan is taxable. Treat your online presence like a business:

Income tax and registration

Obtain a National Tax Number (NTN) and file annual income tax returns under the Income Tax Ordinance, 2001.
Declare income from brand deals, affiliate commissions, platform monetization, and speaking or appearance fees.
Keep books and records: contracts, invoices, bank statements, and receipts.

Sales tax on services (provincial)

Advertising and related services may attract provincial sales tax (e.g., Sindh SRB, Punjab PRA, KPRA, Balochistan BRA). Whether your activity is taxable depends on the nature of services and place of supply.
Agencies and larger creators should evaluate registration thresholds and invoicing requirements in their operating province.

Withholding and invoicing

Some client payments may be subject to withholding. Ensure contracts clarify who bears withholding and how net amounts are computed.

Cross-border campaigns and remittances

Receive foreign income via proper banking channels. Keep documentation for compliance and potential foreign income concessions where applicable.
Be mindful of exchange control and bank KYC requirements for inward remittances.

Always confirm tax positions with a qualified tax advisor—rules and rates change and can vary by province.

Data, Privacy, and PECA Considerations

Pakistan does not yet have a fully enacted, comprehensive personal data protection law, but privacy and cybersecurity still matter:

Obtain consent before collecting or sharing personal data (emails, phone numbers) for giveaways or newsletters.
Protect user data; avoid exposing private information in content (e.g., unredacted documents or plates).
Do not dox, harass, or run smear campaigns—cyber laws can apply to harmful online behavior.
Be prepared for content takedowns if authorities deem material unlawful under applicable online content rules.

Use reputable email/SMS tools, keep data minimal, and provide unsubscribe options for marketing communications.

Enforcement and Penalties: What Can Go Wrong

Authorities in Pakistan have acted against misleading advertising and unapproved promotions. Potential consequences include:

Orders to cease deceptive marketing and correct false claims.
Fines or penalties under competition/consumer frameworks or sector regulators.
Content takedowns, account de-monetization, or platform strikes.
Civil liability for misrepresentation, IP infringement, or defamation.
Tax assessments, penalties, and audits for non-compliance.

Keeping disclosures clear, claims supported, and documentation organized significantly reduces risk.

Influencer Marketing Compliance Checklist (Pakistan)

Disclosure: Use “Paid Partnership,” “Sponsored,” or “#ad” prominently; disclose gifts and affiliate links.
Claims: Verify accuracy and keep evidence; avoid guarantees and superlatives without proof.
Category screening: Avoid or pre-clear health, finance, real estate, tobacco, alcohol, and gambling promotions.
Content rights: Use licensed music and visuals; secure model/location releases.
Contracts: Include compliance, disclosure, substantiation, usage rights, and morality clauses.
Platform rules: Follow branded content tools and community guidelines.
Taxes: Get an NTN, file returns; assess provincial sales tax obligations; clarify withholding in contracts.
Data: Collect minimal data with consent; secure personal information; allow opt-outs.
Records: Keep briefs, approvals, and substantiation for at least the applicable limitation period.
Escalation: Assign a compliance point of contact for quick takedowns or corrections if needed.

FAQs: Influencer Marketing Law in Pakistan

Do I need to use “#ad” specifically?

No single hashtag is mandated, but the disclosure must be clear and upfront. “Paid Partnership with [Brand],” “Sponsored,” or “#ad” are widely understood. Use Urdu where helpful; avoid ambiguous tags like “#sp,” “#collab,” or “partner” alone.

Are gifting and PR packages covered?

Yes. If a gift is likely to influence your opinion—or is given in exchange for coverage—it’s a material connection that should be disclosed.

What about honest reviews?

Honest, unpaid reviews are fine. But if there’s any material connection (payment, gift, affiliate link), disclose it. Never agree to hide negative feedback as a condition of payment.

Can brands boost or whitelist my content as ads?

Only if your contract allows it. Agree in writing on platforms, duration, territories, and whether edits or dark posts are permitted.

Is comparative advertising allowed?

Comparisons should be truthful, fair, and supported. Avoid denigrating competitors or using their trademarks in a way that confuses consumers.

What if my audience is mostly outside Pakistan?

You may be subject to the laws of the audience’s country as well as Pakistan. Use the strictest applicable standard for disclosures and restricted categories.

Conclusion: Yes, It’s Legal—If You Play by the Rules

Influencer marketing in Pakistan is legal and thriving. The key to staying compliant is treating sponsored content like advertising: disclose clearly, tell the truth, substantiate claims, avoid prohibited categories, respect IP and data rights, and pay your taxes. With the right contracts and internal review processes, brands and creators can build high-performing campaigns that are both effective and lawful.

This article provides general information and is not legal advice. Laws and regulatory guidance evolve. Consult qualified counsel and tax advisors for advice tailored to your campaign and province.