KARACHI: Pakistan’s economic troubles are intensifying as strict International Monetary Fund (IMF) stabilization measures, such as subsidy reductions and higher taxes, hinder economic growth, limit job creation, and increase unemployment—especially among young people.
Adding to the country’s challenges, Pakistani workers face rising visa rejections in Gulf countries, particularly the United Arab Emirates (UAE), a crucial hub for employment and remittances. Amid soaring inflation and high energy costs at home, many Pakistanis see overseas jobs as a lifeline. However, tighter Gulf visa policies are exacerbating their struggles, impacting remittance inflows and deepening economic instability.
With remittances from the UAE alone exceeding $5 billion annually, reduced overseas employment opportunities threaten Pakistan’s foreign reserves and households dependent on expatriate earnings. This decline, coupled with limited job creation at home, risks worsening poverty, social unrest, and economic uncertainty.
While the Pakistan Embassy in Abu Dhabi denied any formal visa ban, Ambassador Faisal Tirmizi recently noted an unusual surge in rejections. He emphasized the lack of government-level efforts to align workforce skills with global demands, highlighting the country’s ongoing brain drain due to political and economic instability.
To tackle these challenges, Pakistan could adopt a proactive approach inspired by the Philippines’ labour migration model. Key strategies include consolidating migration functions, implementing skills training tailored to international markets, providing pre-departure education, and forming bilateral agreements for skill recognition. Additionally, promoting Pakistan’s workforce globally through e-platforms and campaigns could attract foreign employers.
With its growing youth population and shrinking job market, Pakistan urgently needs reforms to secure remittance flows and equip workers for global opportunities. Failing to act risks escalating unemployment and social instability, further jeopardizing the nation’s economic resilience.
NEWS DESK
PRESS UPDATE