Pakistan’s economic struggles are intensifying, worsened by the International Monetary Fund’s (IMF) stringent stabilization measures, which include subsidy cuts and increased taxes. These policies have led to stagnant growth, reduced job creation, and rising unemployment, especially among the youth. Amid these domestic challenges, Pakistan is now facing a new crisis: a surge in visa rejections for Pakistani workers in Gulf countries, particularly the United Arab Emirates (UAE). The UAE is a key destination for Pakistani labor, contributing significantly to remittances, which are vital for Pakistan’s economy.
With domestic businesses crippled by inflation and high energy costs, many Pakistanis view employment opportunities abroad as their last hope. However, tightening visa policies in Gulf countries are amplifying their despair, further straining Pakistan’s balance of payments. Remittances from the UAE alone amount to over $5 billion annually, and any decline in these figures could have disastrous consequences for Pakistan’s foreign exchange reserves and the incomes of families dependent on overseas earnings.
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Ambassador Faisal Tirmizi of Pakistan acknowledged the unusual wave of visa rejections during the 2024 GITEX event in Dubai, calling it unprecedented. Although the Pakistan Embassy in Abu Dhabi refuted claims of a formal visa ban, the increase in rejections is raising alarms. This problem is exacerbated by Pakistan’s historic brain drain and the lack of government focus on skill development for the global job market.
Many Pakistani workers are struggling to adapt to the evolving job market in the UAE, where specialized skills are in demand. In desperation, some turn to illegal activities like overstaying visas or engaging in scams, which not only harm their personal records but also tarnish the reputation of the Pakistani workforce abroad, making it even harder for future job seekers.
To counter these challenges, Pakistan could benefit from adopting a labor export model similar to that of the Philippines, which is recognized by the World Bank for its structured approach to training and deploying overseas workers. Some key strategies Pakistan could consider include:
- Unified Migration Authority: Establishing a single body to oversee migration-related activities could streamline processes, protect workers’ rights, and ensure better coordination with host countries.
- Upskilling Programs: Pakistan can implement training initiatives similar to the Philippines’ TESDA, focusing on caregiving, IT, healthcare, and other in-demand global skills, to enhance the employability of its workers.
- Pre-deployment Training: Workers could receive education on labor laws, financial literacy, cultural adaptation, and workers’ rights in host countries, preparing them for better integration and reducing the risk of exploitation.
- Bilateral Agreements: Similar to the Philippines, Pakistan should pursue agreements with host countries to mutually recognize skills and qualifications, easing transitions for skilled workers abroad.
- Promoting Overseas Employment: Creating an e-platform that connects skilled workers with international job opportunities and running global campaigns could enhance the visibility and demand for Pakistani workers.
As Pakistan’s economy faces contraction and the youth labor force continues to grow, the lack of job opportunities both domestically and internationally poses a severe risk of rising poverty, social unrest, and instability. Strategic interventions to secure and support overseas employment while addressing internal economic challenges are essential to maintaining the country’s economic resilience and social stability. Failure to act could further deepen the crisis and exacerbate Pakistan’s socio-economic challenges.
