Capitalising on human capital

Pakistan witnessing biggest exodus of human resources in its history

KARACHI:

More than a decade ago, CNN anchor Becky Anderson inquired the then prime minister, Yousuf Raza Gilani, about Gallup’s survey report, which showed that a fifth of the Pakistanis want to leave the country. However, the response from the PPP’s PM stunned the anchor when he replied “why don’t they just leave then!” and while the CNN anchor was still recovering from a state of shock and disbelief, Gilani further said, “Who is stopping them?”

Fast forward to today, due to the continued apathy of political leadership towards the economic hardship faced by the common people and the failure to generate sustainable growth and job opportunities for the youth, we are witnessing the biggest exodus of human resources in the history of Pakistan.

More than 800,000 Pakistanis left the country in search of jobs in 2022, according to the Bureau of Emigration and Overseas Employment, and there is a strong uptrend established by now.

With the country under the knife of the strictest IMF programme ever, the resultant slowdown in the economy and the looming uncertainty on the political front has made matters worse for the youth entering the job market. There are no signs that the brain drain is going to reverse or even slow down any sooner as people are losing hope for a recovery in the near future.

On the contrary, the situation is totally reversed in the developed world where, as per a report published by the US Labour Statistics, there is a shortage of 40 million skilled workers in the post-pandemic recovery. Moreover, the report suggests that if the trend continues, the companies may stand to lose $8.4 trillion of revenue due to the shortage of skilled manpower.

Being the fifth most populous country in the world with an employable population of 64%, we can turn this impending crisis of skills shortage into an incredible opportunity. By adopting the models employed by many countries that rely heavily on exporting skills such as the Philippines, we can become a reliable supplier of skilled manpower and gain our rightful share in the global market, which currently remains untapped.

These strategies require the alignment of national curriculum to global demands by increasing cultural adaptability and employability through focusing on the specific regional requirements such as teaching spoken Arabic with GCC dialect for better adaptability in Saudi Arabia and the UAE or teaching German or French language for adaptability in Europe, etc.

Also, our diplomatic missions abroad should play active role by fostering stronger ties with destination countries through bilateral agreements and memoranda of understanding (MoUs), which can facilitate smoother recruitment processes and ensure the protection of overseas workers.

It is highly recommended to partner with international organisations to create platforms for skill recognition and certification. This not only enhances the credibility of Filipino workers but also ensures that their qualifications are recognised globally. In the past many decades, we have heavily relied on exporting semi-skilled or unskilled labour force, particularly to Gulf countries such as Saudi Arabia, the UAE and Qatar where there was a huge demand for such workers during infrastructure development.

However, as these markets are becoming more mature, there is a shift in demand now for more and more skilled workforce in tourism, travel, services, information technology, finance, and industrial sectors. If we do not align ourselves with these changing dynamics, then chances are that we can easily lose our share in these markets.

This transformation can be witnessed by the change in the composition of the workforce entering into these markets from all around the globe, which now mostly consist of highly skilled individuals such as IT engineers, doctors, accountants, and financial professionals.

Developing Pakistan’s human capital for global export is a multifaceted task that requires a concerted effort from the government, educational institutions, and the private sector.

By tailouring education and training programmes to the specific needs of different regions (such as GCC, Europe, the US and Asia-Pacific), Pakistan can unlock the full potential of its workforce and establish itself as a key contributor to the global economy.

As the world becomes increasingly interconnected, investing in human capital development is not only an economic imperative but also a means to strengthen diplomatic and cultural ties with nations across the globe.

The writer is a financial market enthusiast and is attached to Pakistan’s stocks, commodities and emerging technology

 

 

Published in The Express Tribune, October 2^nd, 2023.

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