Pakistan needs strategy for manpower export
Many job opportunities are emerging in the region and beyond
PHOTO: REUTERS
ISLAMABAD:
Overseas employment is considered critical for employment generation and poverty reduction. Overseas Pakistani workers contribute significantly in the form of foreign currency remittances to support economy of the country.
However, with the passage of time, the flow of Pakistanis going abroad for work has slowed down. The government needs to frame a strategy to tap potential job opportunities in different countries in addition to Middle Eastern states.
Since 1971, more than 10.1 million Pakistanis have proceeded abroad for employment. Prior to 1970, the flow of Pakistani migrant workers was mostly towards European countries, particularly the United Kingdom and the United States.
However, the oil boom of the 1970s in the Gulf sparked massive economic and infrastructure development in the region, which changed the pattern of migration. South Asian countries, especially Pakistan, India and Bangladesh, were the major ones from where a large workforce proceeded to member countries of the Gulf Cooperation Council (GCC).
Manpower export from Pakistan increased from 2012 onwards and 2015 recorded the highest growth. The trend reversed and manpower export declined in 2016, 2017 and 2018, when 382,439 migrants proceeded abroad for employment. It showed a drop of 23% compared to 2017.
The fall in the export of manpower is a cause for concern as overseas workers contribute significantly to Pakistan’s economy in the form of foreign currency remittances, which are an important source of foreign exchange.
Pakistan and other labour-exporting countries are facing challenges to the export of manpower because of various reasons such as economic recession and declining employment opportunities for expatriates in the GCC countries. Other challenges include the policy of giving preference to locals in jobs and imposition of taxes on expatriates and their families besides reduction in the number of mega projects, which are a major source of employment for Pakistani workers.
At present, the prevalent policy in Saudi Arabia and Gulf countries that give priority to locals over expatriates in job markets and the gap between demand for specific skills at the international level and those available in the country act as impediments in the way of promoting overseas employment. This not only affects the demand for human resources but also the remuneration for Pakistani expatriates.
Future opportunities
The demand for Pakistani manpower in Arab countries like the United Arab Emirates (UAE) and Saudi Arabia has decreased considerably. In addition to these Gulf states, Pakistan is now also eyeing some other countries such as Qatar, Germany, Canada and Japan for exporting its workers.
In Qatar, the football world cup is scheduled to be held in 2022, which is expected to create demand for two million jobs. The emir of Qatar has announced 100,000 jobs for the Pakistanis. For this purpose, visa centres of Qatar have been established in Islamabad and Karachi to facilitate intending workers in completing the visa procedure and allied requirements.
According to the Ministry of Foreign Affairs, Germany will require 3 million skilled workers by 2030 in different sectors like information technology, engineering, health care, services, automobile, energy and environmental sciences.
Canada is facing a shortage of 430,000 workers in different categories such as electricians, welders, mechanics, salesman, drivers, technicians, engineers, IT experts, office support staff, health care and educational professionals.
According to the World Economic Forum, Japan’s population has fallen by nearly one million in the past five years, which is creating a challenging situation for its economy, especially when Japanese products are in high demand globally. To tackle this situation, the government of Japan has introduced a new policy by approving a bill on December 8, 2018, which has great similarities with the South Korean Employment Permit System that will overhaul the nation’s immigration control law by introducing new visa categories for foreign workers in an attempt to address issues of ageing population and shrinking workforce.
According to reports, there will be 0.5 million employment opportunities for foreign workers by 2025 in sectors like construction, agriculture, lodging, nursing care, shipbuilding and manufacturing.
In the case of UAE, according to estimates, there will be a demand for 0.3 million skilled and unskilled jobs for the Expo 2020 in Dubai. Foreign workers selected for the Expo 2020 will be given free visas. Pakistan government wants to avail of this opportunity for manpower export.
In the meantime, Saudi Arabia has planned to invest $3 billion in the New Taif city project, which includes a new airport, expansion of Souq Okaz City, technology and industrial parks, a residential suburb of more than 10,000 homes and a new university.
Saudi Arabia also plans to build the $500-billion Neom mega city that will link the country to Africa via a bridge over the Red Sea. Under the Saudi Vision 2030, it is envisaged that 30 million pilgrims will arrive annually, who will create huge opportunities in the hospitality sector. It also wants to restart the Makkah Haram project.
Strategy to increase overseas employment
Pakistan government needs to improve skills of labour to match requirements of employers abroad and to improve remuneration for Pakistani expatriates. The government plans to have close cooperation with Germany, Japan, Canada and Austria in an effort to enhance opportunities for Pakistanis in view of the potential for the employment of expatriates in these countries due to their ageing population.
The government should also direct community welfare attaches and missions in different countries to play an active role in identifying job opportunities in the manpower-importing countries. Pakistan should also avail of opportunities being provided by the Expo 2020 in the UAE and Fifa World Cup in Qatar to win a maximum share for the Pakistanis.
The government has already formed an inter-ministerial task force under the chairmanship of special assistant to the prime minister on overseas Pakistanis and human resources development with mandate to devise a mechanism for identifying job opportunities abroad. This is a good step which the government has taken.
At present, Pakistan is facing a balance of payments crisis and has to take IMF loan due to the dwindling foreign exchange reserves. An increase in export of manpower can be a good step for boosting foreign exchange reserves of the country and creating employment opportunities.
The writer is a staff correspondent
Published in The Express Tribune, June 3rd, 2019.
Overseas employment is considered critical for employment generation and poverty reduction. Overseas Pakistani workers contribute significantly in the form of foreign currency remittances to support economy of the country.
However, with the passage of time, the flow of Pakistanis going abroad for work has slowed down. The government needs to frame a strategy to tap potential job opportunities in different countries in addition to Middle Eastern states.
Since 1971, more than 10.1 million Pakistanis have proceeded abroad for employment. Prior to 1970, the flow of Pakistani migrant workers was mostly towards European countries, particularly the United Kingdom and the United States.
However, the oil boom of the 1970s in the Gulf sparked massive economic and infrastructure development in the region, which changed the pattern of migration. South Asian countries, especially Pakistan, India and Bangladesh, were the major ones from where a large workforce proceeded to member countries of the Gulf Cooperation Council (GCC).
Manpower export from Pakistan increased from 2012 onwards and 2015 recorded the highest growth. The trend reversed and manpower export declined in 2016, 2017 and 2018, when 382,439 migrants proceeded abroad for employment. It showed a drop of 23% compared to 2017.
The fall in the export of manpower is a cause for concern as overseas workers contribute significantly to Pakistan’s economy in the form of foreign currency remittances, which are an important source of foreign exchange.
Pakistan and other labour-exporting countries are facing challenges to the export of manpower because of various reasons such as economic recession and declining employment opportunities for expatriates in the GCC countries. Other challenges include the policy of giving preference to locals in jobs and imposition of taxes on expatriates and their families besides reduction in the number of mega projects, which are a major source of employment for Pakistani workers.
At present, the prevalent policy in Saudi Arabia and Gulf countries that give priority to locals over expatriates in job markets and the gap between demand for specific skills at the international level and those available in the country act as impediments in the way of promoting overseas employment. This not only affects the demand for human resources but also the remuneration for Pakistani expatriates.
Future opportunities
The demand for Pakistani manpower in Arab countries like the United Arab Emirates (UAE) and Saudi Arabia has decreased considerably. In addition to these Gulf states, Pakistan is now also eyeing some other countries such as Qatar, Germany, Canada and Japan for exporting its workers.
In Qatar, the football world cup is scheduled to be held in 2022, which is expected to create demand for two million jobs. The emir of Qatar has announced 100,000 jobs for the Pakistanis. For this purpose, visa centres of Qatar have been established in Islamabad and Karachi to facilitate intending workers in completing the visa procedure and allied requirements.
According to the Ministry of Foreign Affairs, Germany will require 3 million skilled workers by 2030 in different sectors like information technology, engineering, health care, services, automobile, energy and environmental sciences.
Canada is facing a shortage of 430,000 workers in different categories such as electricians, welders, mechanics, salesman, drivers, technicians, engineers, IT experts, office support staff, health care and educational professionals.
According to the World Economic Forum, Japan’s population has fallen by nearly one million in the past five years, which is creating a challenging situation for its economy, especially when Japanese products are in high demand globally. To tackle this situation, the government of Japan has introduced a new policy by approving a bill on December 8, 2018, which has great similarities with the South Korean Employment Permit System that will overhaul the nation’s immigration control law by introducing new visa categories for foreign workers in an attempt to address issues of ageing population and shrinking workforce.
According to reports, there will be 0.5 million employment opportunities for foreign workers by 2025 in sectors like construction, agriculture, lodging, nursing care, shipbuilding and manufacturing.
In the case of UAE, according to estimates, there will be a demand for 0.3 million skilled and unskilled jobs for the Expo 2020 in Dubai. Foreign workers selected for the Expo 2020 will be given free visas. Pakistan government wants to avail of this opportunity for manpower export.
In the meantime, Saudi Arabia has planned to invest $3 billion in the New Taif city project, which includes a new airport, expansion of Souq Okaz City, technology and industrial parks, a residential suburb of more than 10,000 homes and a new university.
Saudi Arabia also plans to build the $500-billion Neom mega city that will link the country to Africa via a bridge over the Red Sea. Under the Saudi Vision 2030, it is envisaged that 30 million pilgrims will arrive annually, who will create huge opportunities in the hospitality sector. It also wants to restart the Makkah Haram project.
Strategy to increase overseas employment
Pakistan government needs to improve skills of labour to match requirements of employers abroad and to improve remuneration for Pakistani expatriates. The government plans to have close cooperation with Germany, Japan, Canada and Austria in an effort to enhance opportunities for Pakistanis in view of the potential for the employment of expatriates in these countries due to their ageing population.
The government should also direct community welfare attaches and missions in different countries to play an active role in identifying job opportunities in the manpower-importing countries. Pakistan should also avail of opportunities being provided by the Expo 2020 in the UAE and Fifa World Cup in Qatar to win a maximum share for the Pakistanis.
The government has already formed an inter-ministerial task force under the chairmanship of special assistant to the prime minister on overseas Pakistanis and human resources development with mandate to devise a mechanism for identifying job opportunities abroad. This is a good step which the government has taken.
At present, Pakistan is facing a balance of payments crisis and has to take IMF loan due to the dwindling foreign exchange reserves. An increase in export of manpower can be a good step for boosting foreign exchange reserves of the country and creating employment opportunities.
The writer is a staff correspondent
Published in The Express Tribune, June 3rd, 2019.