ISLAMABAD: The Pakistan Institute of Development Economics (PIDE), an affiliate of the Planning Commission, has called for the immediate launch of a Middle East Recovery Mission to help Pakistan move beyond exporting labour and start exporting contracts, services, goods and business expertise.
In its latest Policy Viewpoint, titled ‘Capturing the Middle East Recovery: From Labour Export to Contract Export’, authored by Dr Nasir Iqbal, professor of economics and registrar at PIDE, the institute argues that while Pakistan benefits from remittances, energy supplies, deposits and diplomatic goodwill from Gulf countries, it captures only a small share of the value generated through construction, logistics, engineering, healthcare, information technology and regional reconstruction.
The report urges the prime minister to designate the Special Investment Facilitation Council (SIFC) as the central coordinating body for the proposed mission, approve a 90-day implementation framework and ensure that economic gains are channelled through transparent and audited contracts benefiting Pakistani workers and private firms.
According to the study, the Gulf’s project and reconstruction market could exceed $1.5 trillion this decade, driven by Saudi Vision 2030 projects and reconstruction needs in Syria, Gaza and Lebanon. However, Pakistan continues to earn largely through workers’ remittances rather than project margins, specialist contracts, supply chains and professional services.
The report notes that Pakistan exported goods worth $3.79 billion to Gulf Cooperation Council (GCC) countries in FY25, while imports from the region totalled about $17.9 billion. It also highlights that more than 762,000 Pakistanis went abroad for work in 2025, with around 61 per cent classified as unskilled.
Dr Iqbal said Pakistan’s challenge was not a lack of comparative advantage but its inability to convert its workforce, firms, products and strategic relationships into organised, certified and commercially viable offerings.
The proposed mission will operate through five dedicated desks within the SIFC, focusing on labour and skills certification, exports and supply chains, investment and contracts, defence-industrial cooperation and migrant protection.
Under the framework, workers will be certified, insured and connected to formal banking channels before deployment, while exporters and firms will receive support to access opportunities in Gulf markets across sectors including construction, healthcare, logistics and information technology.
PIDE estimates that the initiative could generate an additional $2 billion to $4 billion in annual debt-free external inflows by its third year, with the potential to exceed $5 billion by Year Five. The institute stressed that these figures are indicative policy targets and should be independently verified before being incorporated into official projections.
The report also proposes a Gulf Worker ID linked to NADRA, banking, insurance and skills certification systems, as well as a diaspora-focused Pakistan Development Bond aimed at directing migrant savings into productive investment.
PIDE said the initiative complements the government’s broader economic agenda and could help advance the export, employment, digital economy and infrastructure goals of the Uraan Pakistan programme.
The study concludes that Pakistan should stop viewing the Middle East solely as a destination for workers and instead treat it as a strategic market for Pakistani businesses, services and products.
