The PIDE has urged the federal government to launch a Middle East Recovery Mission to help Pakistani businesses secure contracts across Gulf markets. The institute believes the initiative could unlock opportunities linked to more than $1.5 trillion in regional infrastructure and reconstruction projects.
In a new policy paper, PIDE said Pakistan has maintained strong relations with Gulf countries for many years. The country has benefited from worker remittances, energy imports, and long-standing diplomatic ties. However, it has not fully capitalized on commercial opportunities available in the region.
According to the report, major projects planned across the Gulf and the wider Middle East could exceed $1.5 trillion during this decade. These include Saudi Arabia’s Vision 2030 projects and reconstruction efforts in Syria, Gaza, and Lebanon.
The institute believes Pakistani businesses can participate in sectors such as construction, engineering, logistics, healthcare, information technology, and infrastructure development. Greater involvement in these industries could increase exports and generate more foreign exchange.
The PIDE report also highlighted challenges facing Pakistan’s overseas workforce. In 2025, more than 762,000 Pakistanis went abroad for employment. However, around 61 percent of them were categorized as unskilled workers, limiting their income and career growth.
The institute also pointed to Pakistan’s trade imbalance with Gulf Cooperation Council (GCC) countries. During FY2025, Pakistan exported goods worth $3.79 billion to GCC markets while importing nearly $17.9 billion. The report says this gap shows the need for stronger export-focused policies.
To address these issues, PIDE proposed creating a Middle East Recovery Mission under the Special Investment Facilitation Council (SIFC). The mission would establish dedicated units for skills certification, exports, investment promotion, migrant protection, and defence-industrial cooperation.
The report recommends certifying workers before they leave Pakistan. This would help improve their qualifications and increase access to higher-paying jobs abroad.
It also suggests helping Pakistani companies secure subcontracts and joint ventures in Gulf projects. The institute believes local businesses could benefit from supplying construction materials, pharmaceuticals, surgical products, and engineering services.
The policy paper also calls for stronger legal and financial protection for overseas workers. Better support systems could improve worker welfare and increase confidence among Pakistanis seeking employment abroad.
According to PIDE, the proposed initiative could generate an additional $2 billion to $4 billion in annual external inflows within three years. By the fifth year, these inflows could exceed $5 billion through higher-value employment, exports, contract earnings, and defence-industrial cooperation.
The institute clarified that these figures are policy targets and not guaranteed outcomes. Their success would depend on effective implementation and coordination among government institutions.
The report also proposes introducing a Gulf Worker ID linked with NADRA, banking services, insurance, and skills certification. In addition, it recommends launching a diaspora-focused development bond to encourage overseas Pakistanis to invest their savings in productive sectors.
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Finally, PIDE urged the prime minister to appoint the SIFC as the lead institution for the proposed mission. The institute believes Pakistan should view the Middle East not only as a source of employment but also as a strategic market for exports, investment, and long-term business growth.
