Growing Demand For Pakistani Workers in Gulf Arab Kingdoms

[Riaz Haq]

Millions of Pakistani workers have been participating in the development of Saudi Arabia, United Arab Emirates and other Gulf nations over many decades. They have been doing so in spite of the almost complete absence of basic human rights and harsh working conditions. A recent Pakistani government report appears to negate their enormous contribution to the Arab Gulf region. Instead of highlighting their positive role and defending their rights, the report by the secretary of Ministry of Overseas Pakistanis and Human Resource De­­velopment reinforces the bigoted negative stereotypes of overseas Pakistanis. 

Emigration of Pakistani Workers. Source: Pakistan Bureau of Emigration

This report and other past unfounded negative statements seem to indicate that Pakistani officials are the worst enemies of their own people. An example of such reckless behavior of Pakistani officials came in 2020 when a Pakistani minister claimed without evidence or investigation that most Pakistani pilots had fake pilot licenses. While the statement was later proved to be wrong, it caused enormous damage to the PIA, Pakistani flag carrier, when its flights were banned in Europe and North America. 

The claim by Pakistan's labor secretary about the Gulf nations not wanting Pakistani workers is contradicted by the government's own data showing that 426,951 Pakistanis were hired by Saudi employers in 2023-24.  During the same period, another 230,000 Pakistanis were offered jobs in the UAE and 60,000 Pakistanis found employment in Qatar.  

Year-wise, the number of Pakistanis hired by Saudi employers declined from 514,725 in 2022 to 426,951 in 2023. But those recruited in UAE increased from 128,477 in 2022 to 229,894 in 2023, according to the Bureau of Emigration. Overall, in 2022, 832,339 Pakistanis went to work abroad, which increased to 862,625 in 2023, according to the Bureau of Emigration and Overseas Employment.

These Pakistani workers in the Gulf region are also making a huge contribution to Pakistan's economy by sending home large remittances. Pakistanis in the UAE remitted $3.7 billion during the July-March 2024 fiscal year. Saudi led with $5.1 billion, followed by the UK ($3.2 billion), the US ($2.5 billion), other GCC countries ($2.3 billion), EU ($2.6 billion), Australia ($0.5 billion) and other countries ($1.3 billion).

Pakistan's weak economy is not creating enough jobs for the nation's growing working age population. Overseas employment helps relieve the pressure. There are over 10 million Pakistanis working overseas and growing. To ensure that this avenue of employment remains open, the Pakistani leaders should be promoting, or at least not denigrating, Pakistanis working overseas. 

The story of Pakistanis' pivotal role in the development of UAE is illustrated by two high-profile examples: Emirates Airline and Burj Khalifa.  

Emirates Airlines flights numbers are preceded by EK which harkens back to the carrier's first flight from Emirates to Karachi. Flight EK600 was flown by Captain Fazl Ghani Mian on 25 October 1985. PIA provided technical and management assistance to the new carrier and leased a new Boeing 737—300 and an Airbus A300B4-200. 

Burj Khalifa, the  world's tallest building, was designed using software developed by Ashraf Habibullah, a fellow NED University alumnus who founded Computer Structures Inc of Berkeley, California.  The Dubai landmark was built by thousands of construction workers from Pakistan. 

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[Riaz Haq]

Remittances soar to $3b in Aug


https://tribune.com.pk/story/2494858/remittances-soar-to-3b-in-aug

KARACHI:
Workers' remittances sent home by overseas Pakistanis remained strong at nearly $3 billion in August 2024, marking a significant 40.5% increase compared to the same month last year. This robust growth is attributed to the prolonged stability of the rupee against the dollar and a surge in overseas employment, particularly in the Middle East, which allowed more expatriates to support their families back home.

According to data released by the State Bank of Pakistan (SBP), remittance inflows rose to $2.94 billion in August 2024, up from $2.09 billion in August 2023. However, the inflows experienced a slight decline compared to $2.99 billion in July 2024. Cumulatively, remittances surged by 44% to $5.94 billion in the first two months (July-August) of the current fiscal year 2024-25, compared to the same period last year.

The average monthly inflow of nearly $3 billion during the first two months of FY25 is notably better than the full-year average of $2.68 billion per month in FY24, suggesting that the growth momentum could be sustainable moving forward.

Speaking to The Express Tribune, Tahir Abbas, Head of Research at Arif Habib Limited (AHL), noted that the major growth in remittances was recorded from Middle Eastern countries. A significant number of Pakistanis found employment in Saudi Arabia and the United Arab Emirates (UAE) in recent months, contributing to the increase in remittances.

Abbas dismissed concerns about the impact of declining international petroleum prices on remittance inflows, stating that the current downward trend in oil prices is more of a normalisation than a sharp decline. He explained that oil prices below $70 per barrel do not pose a significant threat to remittance inflows from oil-dependent Middle Eastern countries like Saudi Arabia and the UAE, which are major sources of remittances for Pakistan.

"Even if oil prices briefly dip below $60 per barrel, it would not destabilise remittance inflows. However, if prices were to fall below $50 per barrel, it could hurt receipts, though such a scenario is not foreseen at present," Abbas explained.

———————-
From Arif Habib

Remittances increased by 40% YoY to $ 2.9bn during Aug’24

Remittances by overseas Pakistanis increased by 40% YoY to USD 2.9bn during Aug'24 compared to USD 2.1bn during Aug’23. On MoM basis, remittances decreased by 2%.

During 2MFY25, remittances went up by 44% YoY to USD 5.9bn as compared to USD 4.1bn in 2MFY24.

@StateBank_Pak
#remittances #SBP #Pakistan #Economy #AHL

https://x.com/ArifHabibLtd/status/1833164216926343427

[Riaz Haq]

Arif Habib Limited
@ArifHabibLtd
Remittances increased by 29% YoY to $ 2.8bn during Sep’24

Remittances by overseas Pakistanis increased by 29% YoY to USD 2.8bn during Sep'24 compared to USD 2.2bn during Sep’23. On MoM basis, remittances decreased by 3%.

In 3MFY25, remittances increased by 39%YoY to USD 8.8bn.

https://x.com/ArifHabibLtd/status/1843884748168478837

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https://tribune.com.pk/story/2501681/pakistan-sees-388-increase-in-...
In the first quarter of fiscal year 2025, overseas Pakistanis sent a total of $8.8 billion back to Pakistan, marking a significant increase of 38.8% compared to the same period in fiscal year 2024.

Overseas Pakistanis sent an impressive $2.849 billion back to Pakistan in September 2024, reflecting a notable 29% increase from $2.208 billion in the Septermber 2023, Express News reported. Despite this positive trend, remittances saw a slight decline of 3% compared to August 2024, when the total was $2.943 billion

The average monthly remittances from workers over the three months amounted to approximately $2.92 billion.

Pakistani workers in Saudi Arabia were the largest contributors in September 2024, sending $681.3 million. Although this figure is a 4% decrease from August, it still represents a 27% increase from the $538.3 million sent in September of the previous year.

In contrast, remittances from the UAE showed an upward trend, rising by 4% from August, from $538.4 million to $560.3 million. Year-on-year, this figure jumped significantly by 40%, compared to $399.8 million in September 2023.

Pakistani workers in the United Kingdom sent $423.6 million in September 2024, which was an 11% decrease from August. However, this amount still signifies a 36% increase compared to last year.

[Riaz Haq]

Pakistan’s trade deficit contracts 31% YoY to $1.5bn in October 2024 - Pakistan - Business Recorder


https://www.brecorder.com/news/40330236


Pakistan’s trade deficit significantly decreased by 31% to $1.5 billion in October 2024 as compared to the same month of the previous year, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

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Pakistan’s remittance inflow at $3.05bn in October 2024, up 24% year-on-year - Markets - Business Recorder


https://www.brecorder.com/news/40331410

On a month-on-month (MoM) basis, the inflow in October was 7% higher when compared to $2.86 billion in September 2024.

During 4MFY25, remittances went up by nearly 35% YoY to $11.8 billion as compared to $8.8 billion in 4MFY24.

Experts credit the increase in inflows to the stability of the exchange rate, a narrowing gap between open and inter-bank market rates, increase in digital payment channels and a rise in the number of workers relocating abroad, especially to GCC countries.

“These stronger inflows will help Pakistan maintain PKR stability and contain the current account deficit,” said Mohammed Sohail, CEO Topline Securities, in a note.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing the disposable incomes of remittance-dependent households.