Declining overseas employment poses threat to Pakistan’s remittance-driven economy

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2025-03-08T18:03:10+05:00 News Desk

The number of Pakistanis securing employment abroad has seen a significant decline, particularly in the Gulf region, due to strict policies by the United Arab Emirates (UAE), Saudi Arabia, and Oman. 

This downturn is expected to have serious economic repercussions, particularly for Pakistan’s remittance inflows, which are a key source of foreign exchange.

According to official figures, 113,000 Pakistanis have gone abroad for jobs in the first two months of 2025. 

In comparison, 727,678 people left Pakistan for employment in 2024, whereas the number stood at 862,625 in 2023. 

The downward trend is raising concerns among employment promoters and government officials alike.

Pakistan Overseas Employment Promoters Association (POEPA) Vice Chairman Adnan Paracha has confirmed a substantial decline in the number of Pakistanis obtaining jobs in the UAE. 

He attributes this decline not only to strict Gulf policies but also to rising costs and multiple taxation issues imposed on employment promoters and job seekers by the local government. 

Paracha revealed that the Sindh Revenue Board (SRB) has abruptly increased its fee from Rs. 460 to Rs. 6,000 per applicant, adding another financial burden on job seekers. 

Additionally, the Punjab Revenue Board charges Rs. 20 per protector fee, further increasing costs for those attempting to secure employment abroad. 

These expenses are entirely borne by the job applicants, making it more difficult for many to afford overseas job opportunities.

Furthermore, Paracha noted that negative portrayals of overseas employment opportunities on social media are also discouraging job seekers. He pointed out that employment promoters, who are licensed by the federal government, also have to pay taxes to the Federal Board of Revenue (FBR) while being subjected to additional service charges.

Expressing his concerns, Paracha urged the government to intervene and facilitate employment seekers by reducing financial barriers and improving diplomatic ties with Gulf countries. He warned that if the trend continues, Pakistan's remittances—which constitute a major portion of foreign exchange earnings—will decline sharply.

"After exports, remittances from overseas Pakistanis are the second-largest source of foreign exchange for the country," he emphasized, urging authorities to take urgent measures to prevent a further drop in overseas employment opportunities and safeguard the country’s economic stability.

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