ISLAMABAD
The Pakistan Institute of Development Economics (PIDE) has called for the immediate launch of a Middle East Recovery Mission to help Pakistan move beyond exporting workers and begin exporting contracts, services, goods and firm-level expertise.
In its latest Policy Viewpoint, “Capturing the Middle East Recovery: From Labour Export to Contract Export,” authored by Dr Nasir Iqbal, Professor of Economics and Registrar, PIDE, the Institute argues that Pakistan’s relationship with the Gulf remains economically important but structurally weak.
While the country benefits from remittances, energy supplies, deposits and diplomatic goodwill, it captures only a limited share of the commercial value generated through construction, logistics, engineering, healthcare, information technology and regional reconstruction. “We send workers; others get projects. We provide manpower; others provide systems.” The report estimates that the Gulf’s project and reconstruction landscape represents a market exceeding US$1.5 trillion this decade, including Saudi Vision 2030 projects and reconstruction requirements in Syria, Gaza and Lebanon. Pakistan, however, continues to earn mainly through workers’ wages rather than through project margins, specialist subcontracts, supply chains and professional services.
Despite strong labour and remittance flows, Pakistan exported only US$3.79 billion worth of goods to GCC countries in FY2025, compared with imports of approximately US$17.9 billion. The study also notes that more than 762,000 Pakistani workers went abroad in 2025, but around 61 per cent were classified as unskilled.
