Faiza Tehseen

To cope with the mounting economic pressure and persistent trade deficit, Pakistan’s overseas skilled workforce can serve as a powerful monetary lever, a senior official from the Ministry of Overseas and Human Resource Development (MOPHRD) told WealthPK on the condition of anonymity.

Owing to their low skill levels, most Pakistani expatriates have been employed in low wage sectors including domestic work, construction, and transportation. Although these jobs provide a steady financial inflow, value addition or wage output remains limited. Remittances significantly contribute to the country’s foreign exchange reserves and help cut the current account deficit.

He said a host of reasons, including lack of awareness about overseas job markets, proper certifications, smart trainings and visa restrictions, are hindering the migration of skilled labor from Pakistan. So, the development of a job competitive eco-system is necessary to support a well-trained workforce and ethical recruitment practices. To make this system compatible, suffucient budget allocation is necessary to support diaspora facilitation programs and export-oriented technical training skills.

The overseas ministry official said, “The real potential of remittances lies not in quantity, but in the skill quality of the workforce abroad. So, it is necessary to move from labour export to talent export in multiple sectors including engineering, finance, health care, and information technology (IT). The Ministry of Overseas Pakistanis and National Vocational and Technical Training Commission (NAVTTC) are playing a crucial role in aligning technical education with the international workforce markets.”

Pakistan needs to produce skilled workers, especially IT experts, to tap into the global workforce market. It’s true that our software developers, data analysts, and cyber security professionals are highly sought after, yet there is a need to formalize their international placement. This will help create remote and on-site employment opportunities for Pakistani IT professionals. He further said, “Skilled migrants remit 2-3 times more than unskilled ones.

They also invest back home in different sectors including real estate, education, and startups. With global exposure, the returnee professionals better drive domestic industries. Besides promoting exports, they can play a vital role in establishing trade links with other countries. Also, their familiarity with international markets can facilitate export growth.” According to the ministry official, the said contribution of workers can be increased substantially through a stretegic shift by exporting skilled rather than low-skilled workforce.

The government is focusing on language training (different foreign languages), and the certification and development of hospitality, technical and digital skills. Pakistan is direly in need of economic revival. So, investing in its skilled overseas workforce can prove one of the best solutions toward addressing the economic challenges. It will not only hike the foreign exchange reserves but also position the country as a global source of talent, added the senior ministry official.

Talking with WealthPK, Ali Sher Khan, CEO of Aiteza International, a foreign employment and consultancy agency, said, “A good number of Pakistani workers leave the country every year to fend for their families, but unfortunately, they draw low wages due to their low skill levels and education. This issue needs to be addressed.” “Our people are in urgent need of awareness about the international job market. They don’t know that even if illiterate ones can find better employment if they learn any skill.

Skilled workers, particularly IT professionals, are in high demand,” added Ali Sher Khan. Although the government is actively working for absorption of Pakistanis abroad, the efforts remain below the par. According to the State Bank of Pakistan (SBP), workers’ remittances during June 2024 recorded an inflow of USD3.2 billion, an increase of 44.4% compared to the previous year. By exporting skilled workforce, this percentage could be substantially improved.

Credit: INP-WealthPk