Pakistan eyes one million manpower exports amid unemployment, economic downturn

Pakistanis seeking employment overseas sit at the Bureau of Emigration & Overseas Employment in Karachi, Pakistan, on June 22, 2023. (AN Photo)
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Updated 29 June 2023
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Pakistan eyes one million manpower exports amid unemployment, economic downturn

  • Pakistani official says foreign companies are rehiring workers as business conditions improve after the coronavirus pandemic
  • Experts say highly qualified professionals, skilled workers leaving country due to low industrial activities at home

KARACHI: A Pakistani government official said on Wednesday that the country aimed to increase its manpower exports to one million per annum, as job opportunities worldwide improve with the disastrous effects of the coronavirus pandemic fading, and many Pakistanis looking to flee the prevailing economic crisis at home. 

Grappling with an economic meltdown that has led to surging inflation and a balance of payments crisis, Pakistan exported 0.83 million human resources in 2022 mainly to Saudi Arabia and the United Arab Emirates (UAE). 

The Gulf market is a traditional one that absorbed around 77% of Pakistan’s skilled labor force, with the South Asian country exporting over 12.7 million people to about 50 countries since 1971, official data shows.

“During the COVID-19 period, the overall Pakistani export of manpower suffered a lot and most international companies disengaged their workers,” Abdul Shakoor Soomro, deputy director protectorate of the emigrant at Bureau of Emigration & Overseas Employment (BEOE), told Arab News last week.

Pakistani officials are confident the country can export up to one million workers per year provided the labor market improves further and the effects of the coronavirus pandemic continue to erode.

“In 2015 we almost reached the one million mark and after the COVID-19 (normalization) we are restoring [these numbers] at the same pace," Soomro said.

Soomro said the manpower exports facilitated by the BEOE in 2023 have reached 372,000 people as companies start rehiring employees.

“The employment ratio is increasing as companies have started rehiring workers that were impacted by COVID-19,” Soomro said, adding that since there is surplus manpower in Pakistan and prevailing unemployment, people are anxious to get jobs in the country or abroad.

The BEOE official said most Pakistani laborers are seeking jobs in the Gulf countries and “almost 80% to 85% people are going to Saudi Arabia, UAE and other Gulf region countries.”

In 2022 alone, 17,976 highly qualified and 20,865 highly skilled Pakistanis left their country for better opportunities abroad, the BEOE data states.

“Doctors, engineers and the skilled, semi-skilled [laborers], all type of people are going abroad for a bright future," Adnan Paracha, an emigration expert and overseas employment promotor told Arab News. "In 2022, almost 2,300 to 2,400 doctors and almost 5,500 engineers went abroad.”

Paracha said foreign companies seeking Pakistani professionals was a positive development as it would increase remittances to the country. “Normally, doctors in Pakistan draw Rs80,000 to Rs90,000 salary ($278-319) and if they go abroad, they can get Rs600,000 ($2,092) to Rs700,000 ($2,441).” 

Economists said the outflow of skilled professionals from Pakistan, often referred to as “brain drain,” is mainly due to lack of industrial activities and job opportunities in the South Asian country. 

“People are leaving Pakistan because they don’t get good employment,” Ammar Habib Khan, a research economist, told Arab News.  

“Our industry has not developed and the professionals we produce go abroad and send remittances but without the development of local industry, how long would we depend on remittances," he said.  

Khan said for the past 10 years, Pakistan's dependence on remittances has been increasing as compared to exports. 

Paracha agreed, saying that not utilizing professionals and skilled laborers is a "drawback" for the government.  

However, Soomro disagreed with both, saying that this is not brain drain but a "normal foreign employment process.”  

Pakistani professionals, on the other hand, say they are going abroad for better training opportunities and higher salaries. 

“There are training facilities in Pakistan but because it is the UK, we will get a better learning opportunity and will be able to serve people after coming back,” Dr Ankash Kumar, a 26-year-old from Sindh’s remote Tharparkar district, told Arab News. 

Another professional, Sufyan Rasheed, said he received a better salary offer from an IT company in Dubai hence he opted to move abroad. 

“I was working as accountant here but found a better opportunity there and I am going to join the company as account manager," he added. 

Overseas employment promotors said European countries, Japan, and Korea apart from the Gulf countries, are looking for IT specialists in addition to doctors and engineers from Pakistan.  

Pakistan can increase its manpower exports through proper training, which should include learning languages for Germany, Poland, Romania, and England, Paracha said. 


Pakistan parliament approves bills to extend tenure of services chiefs to five years

Updated 04 November 2024
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Pakistan parliament approves bills to extend tenure of services chiefs to five years

  • Extension in services of army, navy and air force chiefs follows controversial amendments to the constitution last month
  • The opposition PTI party condemns the amendments for changing Pakistan “from a democracy into a monarchy”

ISLAMABAD: Pakistan’s National Assembly and Senate on Monday approved bills to extend the tenure of the army, navy, and air force chiefs from three to five years, amid protests by the opposition benches. 

The office of the army chief is considered to be the most powerful in the country, with the army having ruled Pakistan for almost half of its 75-year history. Even when not directly in power, the army is considered to be the invisible guiding hand in politics and holds considerable sway in internal security, foreign policy, and economic affairs, among other domains. 

Six bills were passed by the upper and lower houses on Monday evening, including one to increase the term of the services chiefs.

“In the said Act, in section 8A, in sub-section (1), for the expression “three (03)” the word “five (05)” shall be substituted,” read the bill, seeking to amend the Pakistan Army Act, 1952.

Similar bills were passed to increase the duration of the country’s naval and air force chiefs to five years also. 

“The purpose of these amendments are to make consistent the Pakistan Army Act, 1952 (XXXIX of 1952) The Pakistan Navy Ordinance, 1961 (Ordinance No. XXXV of 1961) and The Pakistan Air Force Act, 1953 (VI of 1953) with the maximum tenure of the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff and to make consequential amendments for uniformity in the aforementioned laws.” 

Speaking outside parliament, the chairman of the opposition PTI party, Gohar Ali Khan, said:

“Today, democracy has been changed into a monarchy.”

Leader of the Opposition in the National Assembly, Omar Ayub Khan, said “modifying the service chiefs’ tenure is not a good thing for the country and the armed forces.”

The passage of the new bills follows controversial amendments made to the constitution last month, granting lawmakers the authority to nominate the chief justice of Pakistan, who previously used to be automatically appointed according to the principle of seniority.

The amendments allowed the government to bypass the senior-most judge of the Supreme Court, Justice Mansoor Ali Shah, and appoint Justice Yahya Afridi as the country’s top judge, replacing former chief justice Qazi Faez Isa. 

The opposition and the legal fraternity had opposed the amendments, arguing that they were aimed at granting more power to the executive in making judicial appointments and curtailing the independence of the judiciary. The government denies this.


Pakistani forces kill six militants in shootouts near border with Afghanistan — military

Updated 04 November 2024
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Pakistani forces kill six militants in shootouts near border with Afghanistan — military

  • Pakistan’s Khyber Pakhtunkhwa province, which borders Afghanistan, has witnessed a number of attacks recently
  • Pakistan blames the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegations

ISLAMABAD: Pakistani security forces have killed six militants in two separate engagements in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Monday.
A militant was killed in an exchange of fire during an intelligence-based operation in North Waziristan’s Dosali area, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
In the second incident, Pakistani forces intercepted a group of militants while infiltrating the country’s border with Afghanistan in the South Waziristan district. Five militants were killed as a result.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the ISPR said in a statement.
“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij [militants] for perpetuating acts of terrorism against Pakistan.”
Khyber Pakhtunkhwa, which borders Afghanistan, has witnessed a number of attacks by the Tehreek-e-Taliban Pakistan (TTP) and other militant groups that targeted security forces convoys and check posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.
Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting militant groups, urging the Taliban administration in Kabul to prevent its territory from being used by armed factions to launch cross-border attacks.
Afghan officials, however, deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.
 


Pakistan Navy test-fires ship-launched ballistic missile ranging 350 kilometers

Updated 04 November 2024
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Pakistan Navy test-fires ship-launched ballistic missile ranging 350 kilometers

  • The missile is capable of striking land and sea targets with ‘high precision’
  • Pakistan, India consider their missile programs as deterrent against each other

KARACHI: Pakistan Navy has successfully test-fired a ship-launched ballistic missile having a range of 350 km and capable of striking both land and sea targets, it said on Monday.
Pakistan sees its missile development as a deterrent against nuclear-armed arch-foe India. Both countries have fought multiple wars since their independence from Britain in 1947.
The two South Asian neighbors have long been developing missiles of varying ranges in a bid to ensure deterrence against possible attacks from each other, with analysts often warning these developments could push the region into an arms race.
“Pakistan Navy conducted a successful flight test of an indigenously developed ship-launched ballistic missile,” the Directorate General of Public Relations (DGPR) of Pakistan Navy said in a statement.
“The weapon system with 350km range is capable of engaging land and sea targets with high precision.”
https://www.youtube.com/watch?v=ikldB3jieWo
The flight test of the weapon system, equipped with a state-of-the-art navigation system and maneuverability features, was witnessed by Chief of Naval Staff Admiral Naveed Ashraf, senior naval officers, scientists and engineers.
President Asif Ali Zardari, Prime Minister Shehbaz Sharif, Chairman Joint Chiefs of Staff Committee General Sahir Shamshad Mirza, Chief of Army Staff General Asim Munir and Chief of Air Staff Air Marshal Zaheer Ahmad Babar Sidhu congratulated the participating navy units and scientists on the development.
 
 


Qatar investment team due in Pakistan this month, PM Sharif says after Doha visit

Updated 04 November 2024
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Qatar investment team due in Pakistan this month, PM Sharif says after Doha visit

  • The statement comes days after Sharif visited Qatar seeking to bolster economic cooperation between both nations
  • Before arriving in Doha, Sharif attended the Future Investment Initiative in Riyadh and met the Saudi Crown Prince

ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday a team of the Qatar Investment Authority (QIA) will visit Pakistan this month to set up an information technology (IT) park in the South Asian country.
The statement came days after Sharif visited Qatar while seeking to bolster economic cooperation amid Pakistan’s efforts to boost foreign investment to stabilize its frail $350 billion economy.
Before arriving in Doha, Sharif attended the Future Investment Initiative in Riyadh, Saudi Arabia, where he discussed trade and investment with Saudi Crown Prince Mohammed bin Salman.
Speaking at a meeting of his cabinet, Sharif said a QIA team will visit Pakistan this month, while its chief of Asia-Pacific & Africa Investments, Faisal Bin Thani Al Thani, will also arrive in Islamabad by the end of this month.
“Qatar emir said the same thing. They also suggested setting up an IT park here [in Pakistan],” Sharif told his cabinet members in televised comments.
During his visit, Sharif led delegation-level talks with the Qatari emir before holding a separate meeting with him to discuss a wide array of issues.
“The leaders reviewed the entire spectrum of Pakistan-Qatar relations, exploring potential avenues for enhanced cooperation in trade, potential areas of investment, energy, and culture,” Sharif’s office said last week.
He also met a delegation of the Qatar Businessmen Association (QBA) and invited them to invest in Pakistan’s energy, infrastructure and technology sectors.
The developments came amid Pakistan’s attempts to increase trade and foreign investment after it narrowly escaped a default last year by securing a last-gasp $3 billion financial assistance package from the International Monetary Fund (IMF).
The South Asian country has since sought to promote closer economic ties with regional and international allies to bolster its fragile economy, which has been suffering from a prolonged macroeconomic crisis.
 


Pakistan central bank cuts key rate by 250 bps to 15%

Updated 04 November 2024
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Pakistan central bank cuts key rate by 250 bps to 15%

  • Monday’s move follows cuts of 150 bps in June, 100 in July and 200 in September
  • It takes the total policy rate cuts in the country to 700 bps in under five months

KARACHI: Pakistan’s central bank cut its key policy rate by 250 basis points to 15 percent on Monday, it said in a statement, for a fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.
Most respondents in a Reuters poll last week expected a cut of 200 bps after inflation moved down sharply from a multi-decade high of nearly 40 percent in May 2023, saying reductions were needed to bolster growth.
Average consumer price index inflation in the South Asian country is 8.7 percent in the current financial year, which started in July, the statistics bureau says. The International Monetary Fund (IMF) expects inflation to average 9.5 percent for the year ending June.
Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.
October inflation came in at 7.2 percent, slightly above the government’s expectation of 6 percent to 7 percent. The finance ministry expects inflation to slow further to 5.5 percent to 6.5 percent in November.
However, inflation could pick up again in 2025, driven by electricity and gas price increases after a new $7-billion IMF bailout, and the potential impact of taxes on the retail, wholesale and the farm sector announced in the June budget to take effect in January 2025, some analysts say.