As misfortunes never come alone, Pakistani workers now face another challenge due to the rejection of their visa applications in Gulf countries, particularly the United Arab Emirates (UAE).
Pakistan has faced a historic brain drain over the past two years as worsening economic and political conditions drive skilled and unskilled workers abroad.
As the nation’s manpower exports reached 663,186 by the end of November 2024, the trend of Pakistani workers departing the country has slowed in recent months. By the end of 2023, there were 862,625 Pakistani migrant workers, a record number that represented a 199,439 rise from the previous year, according to the Bureau of Emigration and Overseas Employment (BEOE).
With just one month remaining in the year, it is anticipated that labour exports will show a significant decline from the previous year.
Over 408,709 Pakistanis were employed in the Kingdom of Saudi Arabia in 2024, making it the most popular destination for Pakistani workers in the Gulf. Oman came next with 72,345 and the United Arab Emirates with 63,245. In the first eleven months of 2024, 37,235 Pakistani workers were welcomed in Qatar and 22,455 in Bahrain.
In terms of total manpower exports, the vast majority of Pakistanis (329,126) departed the nation as labourers. Driver exports came in second with 170,487. A friendly country’s change in visa rules was cited as the reason for the decline in labour exports.
In the meantime, these workers increased remittances to Pakistan, which grew steadily, mostly from the GCC. Remittances from Pakistan abroad reached $11.8 billion by the end of October 2024, a respectable 35% increase from the previous year. This was from July to October of 2029.
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The fact that fewer workers are travelling overseas suggests that those who are currently there are still contributing to their families and the domestic economy.
The second-highest migration since 2015 was recorded by the nation’s labour exports last year. According to an analyst, Pakistan’s potential of export of labour is far more than acknowledged.
Remittances have a significant impact on the economy, especially in developing countries like Pakistan.
- Stability of the Economy:
By sustaining foreign exchange reserves and lowering the volatility of economic development, remittances offer a consistent supply of foreign currency, which contributes to economic stabilisation.
- Welfare of the Household:
Remittances enhance recipient households’ well-being on a microeconomic level. They enable families to spend more on necessities like food, medical care, and education. Higher educational achievement and improved health outcomes may result from this.
- Growth of the Economy:
Remittances boost household spending and investment, which supports economic expansion. The demand for goods and services is subsequently increased, which results in increased output and economic growth.
But there can be drawbacks as well. Reliance on remittances, for example, can occasionally foster a culture of dependency, which lowers labour force participation in receiving nations4. Furthermore, significant remittance inflows may cause currency appreciation, which could reduce a nation’s export competitiveness.
All things considered, remittances are vital for sustaining economies, but it’s critical that nations put rules in place that optimise their benefits and minimise any drawbacks.
To address the visa challenges faced by Pakistan’s workforce and improve migration outcomes, Pakistan could draw inspiration from the Philippines’ model of organised labour migration and skill development.
The Philippines has long been recognised by the World Bank for its proactive approach in training, deploying, and supporting overseas workers