More than 50,000 illegal Pakistani workers in Saudi Arabia would face deportation after July 3, who are not only bread-winner for their families, but also play a key role in the economy in the form of remittances.
Many of them are hoping that strong links between the PML-N government of Pakistan and the Saudi kingdom can save them. According to new labour laws announced by Saudi Arabia, overseas workers are restricted to work for their sponsors only in the field registered in their residence papers. Riyadh took this initiative to employ its growing labour force in different fields.
The unemployment rate in Saudi Arabia is around 12%, of which 40% are high-school graduates. In order to boost employment, the labour ministry wants to implement Nitaqat system, designed in 2011. According to Nitaqat, every company has to employ 6-30% native people depending on the size and nature of work the company does.
Every country has the right to accommodate its labour force first but overseas workers in Saudi Arabia are more skilled than the local populace.
With stricter laws, Saudi Arabia is trying to reduce the labour black market among an estimated nine million foreigners working in the country. The new policy allows workers to correct their record within the grace period of three months which will end in the first week of July. More than 1.5 million of them have changed their residence status since April ahead of a planned crackdown on illegal expatriates, said the labour ministry.
According to passport authorities, more than 180,000 expatriates have left the kingdom since the announcement of new labour regulations. After the July 3 deadline, illegal workers staying in the kingdom will face up to two years of imprisonment and fine of up to 100,000 riyals (Rs2.7 million).
The grace period would be helpful for those who have expired visa and illegal status to correct their record. Most of these are South Asians, who number around four million. As foreign workers queue up outside of government offices and consulates of their respective countries in sizzling heat to legalise their status, many of them ask the authorities to extend the amnesty deadline.
If previous instances are any indication, there is a strong relationship between the PML-N leadership and the Saudi kingdom, sparking hopes that the new government of Pakistan can play a vital role in solving the issue. The Foreign Office spokesman has said that the embassy in Riyadh is helping Pakistanis to legalise their status. Despite this, thousands of workers seem to be trying to leave the country because there are many hurdles in the process.
However, the government has so far not sent a delegation to handle the situation. On the other hand, India did send a senior delegation to Riyadh to avoid deportation of about 75,000 Indians.
Implications for remittances
Remittances from foreign workers are important to the economies of countries such as the Philippines, Sri Lanka, Bangladesh, India and Pakistan. Saudi Arabia is the largest source of remittances for Pakistan, though most of the Pakistani workers there are associated with low-paid jobs.
Remittances sent home by overseas Pakistanis touched $12.8 billion in 11 months (July-May 2012-13) of the current fiscal year with the hope that the figure will cross $15 billion by year-end. However, the situation in Saudi Arabia may serve as a stumbling block.
In the 11-month period, remittances from Saudi Arabia stood at $3.8 billion, accounting for 29% of the total. Monthly data shows that in March remittances from the kingdom stood at $352 million, which increased to $392 million in April but due to the new labour policy they fell to $380 million in May.
This drop of $12 million caused the decline in overall remittances in May, when they fell $23 million as compared to April.
According to the new labour policy, the Saudi government will create a database of worker salaries which will affect remittances. Saudi Arabian Monetary Agency will monitor the amount which an expatriate wants to send home and will compare it with his salary. If he sends more than his salary, he will be investigated.
It is projected that remittances from Pakistani workers in Saudi Arabia have plummeted about $30-50 million in June.
The writer is a researcher at the Economic Growth Unit of Sustainable Development Policy Institute
Published in The Express Tribune, July 1st, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (47)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1732486769-0/image-(8)1732486769-0-270x192.webp "lahore s smog lessons to be learnt")
@ goggi from Lahore, very well said about the old days of Lahore.
And for those who are against the law breakers, I ask, what about those Saudis who get the visas issued in their name and then let the men loose to work where ever they want. These poor folks keep paying that kafeel a ranson money every month, while Saudi is not touched for creating illegals. I used to work in Saudia as a Chemical Engineer in the ministry of Defense. Left Saudia's comfortable job and money and vacations for a tough life in USA. I am much happier. I am considered a human being. I am now considered a fellow citizen. I have all the rights as any other citizen.
Great post. Thanks for the helpful cheat sheets. Now maybe I’ll get my head wrapped around this stuff. Probably not, but it’s a goal. Gotta have them goals.
low paid Pakistani workers in Saudia Arabia are living like slvaes, Pakistan Government should invest in people to make them educated and skilled professional. SA cannot keep the kingdom clean without foreign workers, so saudi like to be Mason,Carpenters, Barbar. Tailors etc if all the non saudi workers leave the kingdom it will be interested to see how they managed.
If Saudis cannot even give the respect and rights to their own women, who are treated like second class citizen, how can one expect them to treat Pakistanis as brothers, when they do not even consider us as equals.
It is only a matter of time when world will not be dependent on Arab oil. US is on the path to self dependency with an abundance of natural gas & shale oil. India & China could learn from US & follow soon. When this happens Arabs will be forced to go back to the life of penniless desert nomads & will go looking for menial work in other countries that have diverse economies.
@Saed Nafees: Sure, Saudi Arabia is a sovereign country and it is common knowledge that they mistreat brown colour workers but bow to the white people. I have known some Saudis in my class at Kansas State University, they were the pits, personally I would not associate with them, they are greedy and hypocrites and this so called Muslim Brotherhood is a bunch of baloney or cr........... I have heard some horror stories from an Oxford educated Pakistani Mathematics professor at Kansas State University who worked there for a year about their mistreatment of Pakistanis and Indians and call these workers Muskeen which is a derogatory term. They are lazy people and don't want to work like Pakistanis and Indians do, let us face it that there is no shame in work and dirty ones hands, as a matter of fact it is pride for our people that they are hard working and are intelligent but some how denied the opportunities at home for good education and jobs.It is all about good governance, education and creating jobs. I myself is an immigrant to the US and proud to say that I have never been mistreated in Kansas as I have lived here for the last 49 years, no one should be mistreated just because they are there to make an honest living. It is time that Pakistanis should start building their own country with the help of these workers and see to it that they are accommodated when they return.
@Sodomite: "Their treatment of us was so demeaning that I never want to go to any country in the Middle East. I don’t want to do Hajj even"
Pakistan's are treated "specially" all around the world and even by "the ummah". You found that out by experience.
Saudi Arabia will definitely regret its decision... Y? Most of the Pakistani labor is working on low positions and I am 100% sure snobbish Saudis will never work on these low positions with far less salaries....
Another instance where Muslim brothers themselves are getting kicked by Saudis.....that is why we should look to develop our own country.
Overseas Pakistanies contributue so much to the economy, and are treated like third class citizines in there home country, how can we expects other to treat them with respect, when there home country doesn't.
Let alone, India is already active upon it, they've sent a delegation to handle this matter, but the Pakistani Govt, didn't even bother doing the same.
@Karella: There is no relationship between remittances of workers and madarra funding. What is preventing Pakistan government from stopping such funding??
@naeem khan Manattan,Ks: "Pakistanis stand up on their own feet instead of depending on others".
Easier said than done. Pakistan does not have this capacity, it is a crippled country (look at everyday's headlines)
@Syed A. Mateen: "Saudi Arabia has very strict laws and these laws are also implemented." ++++++++++++++++++++++++++++++++++++++++++ Pakistani Govt must send a senior team to study the phenomenon of Laws being implemented....!
Most of the comments seem to be politically motivated. Saudi Arabia is our one of best friend in the world. Millions of poor Pakistanis are employed there who are sending millions of so needed dollars to Pakistan. We the pakistanis are strange people, we hate friends and love our enemies.
@Mohammad Ali Siddiqui:
"Why Pakistanis go to Arab countries to work over there when Arab Nationals think themselves as they are the only human beings on earth and not Pakistanis."
It is easy for you to say since you are apparently not a poor guy struggling to feed his family. Most of the Pakistanis working in Saudi Arabia are poor, low-skilled workers who go there so they can feed their families. To them, all this talk of pride and honor has no meaning when their families are starving.
Why are people bashing KSA? Every country has the right to implement their laws. Every government is responsible for providing work opportunities to its citizens. These new laws also have includes provision of jobs to Saudi women & physically handicapped Saudis. When the employment of foreign labourers was not much regulated in KSA then it was bashed for not providing any legal support & cover to these labourers. Now when the Saudis are trying to implement some laws which can regulate the employment of foreign labourers, people still have problem with it. In the past there were cases when professionally qualified individuals had to work on visas intended for low profile jobs. Now, they will be getting visas as per their qualifications & professions. What's wrong with that?
time to rise pakistan, stand up on your own feet. i wish some day these arabs will come and work in pakistan. if they will have the required talent. presently which is not there.
Saudi Arabia has full right to deport any Pakistani, whether legal or illegal because Saudi Arabia is a sovereign country and being there is not a right but a revokable privilege granted to foreigners. But there is a big human element to it and Saudi government should keep that in mind. Many families of these foreign workers depend on the money these workers send home. Anyone can loose job, but for foreign workers such circumstances are devastating. These foreign workers have spent their lives filling out applications and doing jobs for little pay which non-foreign workers may never be able to relate to and hence reach although legal but cruel conclusions. If Saudi government continues with these deportations, I hope its done respectfully and if some of these workers find work there in the future, they are given visas without prejudice. Unfortunately, these tougher laws on foreign workers are being adopted and enforced around the world due to the far reaching effects of the financial crises of 2008-09 but I hope this issue is not only seen from a legalistic point of view but from a humanitarian point of view as well.
How heartless of the Saudis to not look the other way when their Muslim brothers from Pakistan break the law.
I detest EVERYTHING what is related with this barren peninsula. Neither their unconvincing religion philosophy nor their dirty oil money has brought any peace in my homeland. Rather in contrary we are killing each other!
As a small boy in Lahore, we had simple ceiling fans, earthenware pitcher (surahi), wore our cotton clothes Made in Pakistan, ate our fresh and tasty vegetables, our best basmati rice, our Kissan desi ghee, in summer nights the whole city slept in the nature, our cinema halls were packed with families, young men flocked around a paan shop and listened on his radio cricket commentary and our roofs on the day of Basant!!!!!!....... MY CITY LAUGHED AND ENJOYED BECAUSE WE DON'T NEED MONEY TO BE HAPPY!
Todays Pakistan is like a lunatic house with no identity and culture.
It is not just the question of Indians and Pakistanis loosing their jobs there. Most Indian and Pakistani workers remit almost all their salaries and often more than their declared salaries to their relatives. They get paid from multiple jobs in cash and their officially declared salaries are at times less than what they actually earn. All these workers will now be very careful as to the amounts they remit outside. Even others may limit their remittances, just to be on the safe side. It may get worse if other arab countries also follow Saudis. Official remittances from these workers to their countries will fall sharply. Only way for these workers, if they cannot use hawala channels is to buy gold with their extra cash and bring it along with them when they visit their countries. Customs officials in India and Pakistan may fleece them. Saudis may also be watching them at their airports.
People who are being sympathetic towards this law and are of the opinion that "these Immigrants are illegal and should be punished" should go and do some research on how do people become Illegal in the Middle East. 90% illegals are purposely made illegal so that the Mudeer (Their Owners/ locals) could make them work like a slave for no salary whatsoever.
How easy is it to make someone Illegal one might ask ... well ... 1 lie from the Murder and the person will have to live all his life as an Illegal & Trapped Slave.
A Common Pakistani Man is no right, or can not take any legal action against any local and the only option left is to either submit to the local's wishes or get punishment (Jail time) and deport back to Pakistan as an Illegal citizen.
These illegal works should have learnt the deep hatred Saudi's reflect towards other nations, and their ill natured policies have divided other nations and create turmoil.
India sent a delegate ....good.one piece of good news by our government to help fellow Indians even for remittances. God bless the expatriates there. Good news I got from ET. Rab rakha
Wait! Saudi going to repatriate only 'illegal immigrants'. It's applicable to all nationals. There is no need to read any political angle in this. However how these entered in first place is point to ponder.
Our people regard Saudi Arabia as brother of Pakistan. What kind of brother is this country. All those who have visited KSA knows who do they people treat us. I hate KSA
@Gingo: Been twice for Umrah, once with my invalid mother on a wheelchair. That was flying 1st class and staying in a 5 Star hotel. Their treatment of us was so demeaning that I never want to go to any country in the Middle East. I don't want to do Hajj even. That is after I had traveled to all the Arab countries as a tourist.
Saudis are the worst people. Americans are their God and their proudness towards other muslims is shameful. Pakistni Govt should have the guts to face against this thing. First they take 5000 US$ to issue "AZAD VISA", and this money goes in the pocket of prince and now they are deporting them. Worst People!
Although Saudi Arabia has a large growing population, I just don't think the Saudis are willing to do the jobs that Pakistanis do. Saudis can only be owners of businesses but the managers and workers will be foreign. It will take a long time for Saudis to change their attitude especially to physical work.
@naeem khan Manattan,Ks: So much for Muslim Brotherhood. History of Omayyad is painfully racist. Arabs excluded non-Arabs from being true Muslims until the Abbasid period. So its history repeating itself.
I dislike Saudi Arabia so much that i'll never set foot there. Yes even if it means giving up on Hajj and Umra.
ET Where are my comments?
Why Pakistanis go to Arab countries to work over there when Arab Nationals think themselves as they are the only human beings on earth and not Pakistanis.
If some one wants to see as how human rights are abused in Arab countries one should go and see what is happening in Arab countries with Pakistanis.
It's time to boycott Saudi Arabia! They are not and have not been our friends. Their biggest contibution to Pakistan is export of Wahhabi Islam. If Pakistan doesn't take notice of it still, then get ready to say goodbye to this beautiful country.
@Syed A. Mateen: "Saudi Arabia has very strict laws and these laws are also implemented."
The laws, of course, are only applicable for hapless expats who are often not paid their salaries and many have their passports confiscated by their employer. The Kingdon never applies these 'strict laws' on unscrupulous Saudis who exploit the foreign workers.
LAW breakers should be punished. Why there is talk about condoning illegal actts. Pakistanis are famous to be rogue law breakers and are almost everywhere illegal braking immigration rules and rgulations. No mercy. Deport these rogues back to Pakistan. I want legal, honest, mentally, morally clean people representing Pakistan, not these illegals breaking laws, bringing bad name to my country, Pakistan. There are plenty of experienced skilled labor in Pakistan who can go to MEast countries and do a damn good job, making Pakistanis proud. Kick out these third grade mentally corrupt Pakistanis fro KSA please;
Don't restrict workers remittance which is their sweat and blood, stop Saudi private funding to Madrassas in Pakistan.That would solve many of our problems.
Saudi-Arab men and LABOUR! A hilarious humour of their Government!
Most of the Saudi men have already a very tight schedule book with their multiple wives.......................... !
And you have Pakistani lands leased out to Arabs for hunting. Arabs were never friends and they will never be. Deal with them with they way they understand. If I have to chose between two, I will choose Pakistan any day as they are our blood brothers.
The king is working hard to provide jobs to saudis
@Syed A. Mateen: The only sad part is most of laws are only implemented for 'Rafiqs' (a derogatory term for South Asians). How many Saudis have you seen getting punished for drug trade and similar crimes?
nothing special, the poor will be the first getting brunt of all this, they will come back than will again be offered visas by KSA and they will again buy it and will go again to KSA. it will keep on going on and on. nice way of making easy money :)
Well, it is time that Pakistanis stand up on their own feet instead of depending on others specially the Saudis who has created this tremendous religious intolerance in Pakistan in the first place. It has been said that if Pakistan's government takes stringent measures to curtail and eradicate this rampant corruption then the economy does not need these remittances. And above all the Saudis has interfered like the Americans in Pakistan's internal affairs for a long long time because we depend on their hand outs. A nation could be only be independent and sovereign if they stand up on their own feet and live with in their own means.
How can Government of Pakistan stop deportation of illegal Pakistani workers from Saudi Arabia?
Saudi Arabia has very strict laws and these laws are also implemented.