Saudi ministries are directed to send back all foreigners working in government departments by 2020. The Saudi government feels this will help their economy by offering jobs to the locals and stopping capital flowing outwards from their economy.
Over 39,000 workers have already been deported to Pakistan in past four months as reported by a local newspaper in February 2017. “According to the report, most of the individuals deported from Saudi Arabia were job seekers and businessmen. The report had also claimed that a large number of migrant workers were stranded abroad due to “lack of proper documentation and thus deported.” The largest number of stranded Pakistanis at 882,887 was deported from Jeddah during the years 2005-06 to 2014-15.”
According to Arab News, between 2011 to 2015 alone, more than 1.6 million Pakistanis came to Saudi Arab for job opportunities. According to Ministry of Overseas Pakistanis and Human Resource Development this amounts to 49.9% of Pakistanis going abroad for seeking jobs. The uneducated sector who fall in the category of workers, constitute 50% of the stated number.
“Since 1971 till Dec. 2015, around 8.77 million Pakistanis proceeded abroad for employment through the Bureau of Emigration and Overseas Employment (BEOE).
Out of this total manpower exports, about 96 percent have proceeded only to Gulf Cooperation Council (GCC) countries, one percent to European countries and three percent to other countries for employment during the same period.” (Arab News July 14, 2016)
There have been a huge drop in crude oil prices roughly by half, give or take, leading to reduced profit margins and reportedly billions of dollars payable to private organisations, in particular the construction sector.
Saudi Arab is focused on putting in place its programme of “Vision 2030” that aims to give employment to locals by broadening local business base. Headed by Mohammed bin Salman, focused on reducing reliance of Saudi Arab on oil. Seven thousand new jobs are envisaged through a solar power programme aimed to draw 10% of its needed energy in targeted time period. Saudi Arab looks forward to export renewable energy and the technology.
Already taxes on ex-pats working in Saudi Arabia has been increased. It is SR100 per dependent in the first year. The amount will be raised gradually every year until 2020. It will double to SR200 after a year, and then increase to SR300 in July 2019 and SR400 in 2020. Companies where the number of non-Saudi employees exceeds the Saudis currently pay a monthly fee of SR200 for every foreign employee. Starting next year, the fee will be increased gradually until 2020. (Reference SAMAA TV July 1, 2017)
These programmes sound good and reflect well on the way responsible governments should act in line with domestic policies. The question is where does it leave Pakistan with his heavy reliance of salaries of its working populace from there coming in our economy? Has there been any focus on strategy to be followed to a) to absorb the returning workforce and b)to substitute from some source the income of this workforce that was being injected in the economy?
According to a report the highest amount of remittances was received from Saudi Arabia. The remittances from the kingdom in FY16 rose to $5.96bn compared to $5.6bn in FY15. The amount is about 29pc of the total remittances Pakistan received in FY16. (Dawn July 16th, 2016) After record remittances, these fell. They fell by 7% in February 2017 in comparison to the level in February 2016. However, there seems to be no report or inquiry into the sources of the fall.
There also does not seem to be any focus on this issue that can lead to be a-not-so-far crisis for Pakistan. The PML N Government has been single mindedly focused on the Panama Case- virtually putting all other issues on the back burner.
Countries like Pakistan rely on the incoming salaries by exporting labor. Reportedly in 2015 the remittances sent covered for Pakistan’s trade deficit. As Pakistan is poised to push its gains in CPEC this downslide coupled with trade deficit can seriously dent the economy.
The unemployment rate increased by 8.3% during fiscal year 2015. The reason quoted for the growth of unemployment was slow economic growth unable to absorb the numbers. With more coming in- where and how do they get absorbed?
“A report by UNICEF ranked more than 60 percent of Pakistani youth as the second highest bulge of population aged between 15-24. Instead of cultivating the country’s economy, this untapped asset continues to cripple its stability. The abysmal state of youth development particularly with regard to education, healthcare and employment opportunities was once again highlighted in a report titled “Youth in Pakistan: Priorities, Realities and Policy Responses” by the Population Council. The report lamented Pakistan’s measly score of 0.63 on the Commonwealth Youth Development Index, slating it as 22nd out of 54 countries. An integrated framework with linkages across sectors was, hence, suggested to resolve the prevalent crisis created by the existing standalone policies. Not only would these coordinated efforts help develop Pakistan’s youth but also facilitate the realisation of its financial goals. However, the governmental failures in this regard have set forth myriad problems on both societal and economic fronts.” (Local newspaper Aug 29, 2016)
Will the government please take out time to formulate some kind of policy for the looming crisis?
Does this mean no Saroor Palace?
I think this article must be read by our economists and planners
to formulate a comprehensive plan how to deal this crisis
when so many work force will be repatriated to Pakistan
from Saudi Arabia. We may stand on our own feet
rather rely on oil money. No crutches but our own national pride!
No doubt, this is well written article by a renowned author Ms. Yasmeen Aftab Ali, but who cares. There have been number of well wishers of Pakistan and its nation and wanted to contribute in different ways but unfortunately they have been pushed aside or into the corners to let their skills & talent spoiled. In this scenario I don’t think if there is anyone serious in the current setup ( Government of Pakistan ) who really can think positive and take care, unless there is an interest of them to do little or bigger. We can pray only to seek Allah’s help & guidance, who is the only hope and empowered to do by His own way. He is the one who can change the Mindset of the Masses and only through them ( by their positive actions and not just tongue talk ) a real change is possible.
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