ISLAMABAD: Officials informed Arab News on Monday that Pakistan intends to double its labor exports to Saudi Arabia following the historic defense agreement between the two nations last month.
According to the Bureau of Emigration & Overseas Employment, the nation’s exports of human resources to Saudi Arabia have experienced consistent growth over the last five years. Between 2020 and 2024, Pakistan dispatched 1.88 million workers to Saudi Arabia, marking a 21 percent increase from 1.56 million during 2015–2019.
Remittances from the Kingdom increased from $7.39 billion in 2020 to $8.59 billion in 2024, indicating consistent demand for Pakistani workers. In comparison, inflows from the United Arab Emirates varied between $5.8 billion and $6.8 billion during the same timeframe, whereas inflows from Qatar stayed under $1 billion each year, as reported by the State Bank of Pakistan.
In September, the two nations signed a significant defense agreement aimed at strengthening joint deterrence and advancing years of military and security collaboration. High-ranking Pakistani government officials, including National Food Security Minister Rana Tanveer, have stated that Islamabad and Riyadh will finalize a comprehensive economic agreement following the defense agreement.
The defense agreement between Saudi Arabia and Pakistan will significantly influence the export of manpower. “The present average export is about 500,000 workers annually, and from next year, we aim to increase it to one million,” remarked Gul Akbar, a senior director at the BEOE.
The BEOE is collaborating with representatives from Pakistan’s Special Investment Facilitation Council, a civil-military organization established to enhance investments, especially from the Middle East, by implementing various measures, as stated by the official. The Pakistani counterparts will present the draft to Saudi officials in forthcoming meetings.
On Sunday, the government of Pakistan formed a high-level committee made up of ministers and officials to supervise economic discussions and collaborations with Saudi Arabia.
Akbar mentioned that Pakistan has suggested establishing technical training institutes in both nations to enhance skill certification and increase the employability of the local workforce.
“He also mentioned that we are suggesting an e-visa system for workers from Pakistan.”
According to the SBP, the Kingdom is still the primary destination for Pakistani labor and the largest contributor of remittances, totaling $736.7 million in August from an overall inflow of $3.1 billion.
Experts attribute the increase in Pakistani workers heading to Saudi Arabia to the ongoing development initiatives in the Kingdom as part of Vision 2030, which has generated significant demand for skilled and semi-skilled foreign labor.
Saudi Arabia’s organization of the 2034 FIFA World Cup is boosting the need for foreign labor, as massive stadiums, transportation systems, and hospitality facilities are being built in the Kingdom.
During the same period, Pakistan’s human resource exports to the UAE plummeted by 65 percent, dropping from 1.32 million to 463,000. In contrast, Qatar more than doubled its import of Pakistani workers, increasing from 74,000 to 170,000, highlighting changing labor trends in the Gulf region.
To address Saudi Arabia’s workforce requirements, Pakistan has collaborated with Takamol, a skill verification initiative, and its National Vocational and Technical Training Commission is certifying laborers in 62 skilled categories, including construction and technical services.
In an interview with Arab News, Masood Ahmad, CEO of M.Pak Makkah Manpower Services, stated that his company sent 2,000 workers to Saudi Arabia this year.
“The defense agreement has increased Saudi employers’ trust in Pakistani workers as the two nations enhance collaboration,” he stated, emphasizing a rising need for healthcare professionals and delivery drivers.
Akbar brushed aside worries regarding “brain drain” and referred to foreign jobs as a “national accomplishment.” Pakistan’s surplus workforce should be viewed as an economic asset that generates remittances, expertise, and technical abilities, he noted.
Remittances continue to be a fundamental part of Pakistan’s external finances, supplying hard currency that aids household spending, reduces the current-account deficit, and bolsters foreign exchange reserves.
During the past fiscal year, Pakistan saw $38.3 billion in workers’ remittances — an increase of $8 billion compared to the year before, exceeding the nation’s $7 billion loan program from the International Monetary Fund.