INP-WealthPk

Honeymoon almost over for Pakistani workers in GCC states

October 03, 2023

Amir Khan

Pakistan's poor education system and lack of technical education are major contributors to the decline in demand for its workers in the Gulf countries. It is due to these factors that limited remittances are coming to the state coffers. Javed Iqbal, Fulbright International Economics Specialist Scholar, said this while talking to WealthPK. Pakistan used to export its labour to Saudi Arabia, Kuwait, Qatar, Oman, Abu Dhabi, and Bahrain but now their demand has decreased, allowing the regional competitors to grab the job opportunities in these fast-emerging states. “Our workers often do not meet the global market standards, which demand an affordable and productive labour. The Gulf Cooperation Council (GCC) countries are characterized by a large number of foreign workers in their workforce as well as a segmented job market; this distinction arises from the global labour market's evolution, which no longer accommodates unskilled or moderately skilled workers,” he opined.

"Despite worldwide disruptions, the GCC nations have maintained stability and are experiencing a rapid growth, thanks to continuous investment and diversification. This has resulted in a thriving labour market in 2023, creating job opportunities across various industries and regions. “85% of GCC companies intend to hire permanent employees this year, as indicated by the GCC Salary Guide 2023 released by Hays Middle East. However, with 45% of professionals open to switching organizations, an increased competition for top talent is expected. The guide, based on expert insights and a survey of over 2,000 employers and professionals, provides a detailed compensation data for more than 400 occupations across 13 industries in the region.” "Concerning this, Pakistan boasts a population of over 241 million, yet it grapples with an official student dropout rate of 44% and fewer than 4,000 vocational training institutions to accommodate its vast number of disenfranchised youths," he said.

He highlighted that in today's evolving global landscape, even occupations such as sanitation workers require skills and knowledge to perform tasks according to established standards. “The Central Asian and Eastern European countries produce plumbers, electricians, and other skilled workers through one- and two-year diploma programs, equipping them with competencies comparable to assistant engineers who can interpret construction blueprints and understand structural designs. “In such an environment, an unskilled Pakistani labour struggles to compete with the qualified workforce from these regions,” he added. He emphasized that Pakistan's vocational training efforts, despite the presence of training boards and vocational education commissions, yield disappointing results, with the annual youth unemployment rate exceeding 1.5 million. Gender representation is notably low, with only 286 vocational institutes catering to women.

Pakistan was once a source of top-tier medical professionals for GCC countries, with Pakistani doctors, nurses, and paramedics holding prominent positions in Saudi Arabia, Qatar, and Oman. However, the landscape has changed, and the demand for specialized medical skills in the GCC now far exceeds what Pakistan's medical institutes can provide. Pakistan needs to train its people for the available jobs. China and Germany can help by providing training and investment. Concluding, Javed said short-term training programs can help people get jobs in construction within four years. However, it will take five to eight years to train people for professional jobs, such as doctors, nurses, and IT experts. This requires updating Pakistan's educational system. Pakistan must embrace change, invest in skill development, and seize the opportunities presented by the GCC's modernization efforts to secure a brighter future for its youth and its place in the global labour market, the Fulbright scholar emphasized.

Credit: INP-WealthPk