Islamabad:Dr Nasir Iqbal from 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.
Dr Iqbal said this in his Policy Viewpoint on “Capturing the Middle East recovery: from labour export to contract export” published by PIDE. Dr Iqbal 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” observes the report estimating that the Gulf’s project and reconstruction landscape represents a market exceeding $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 $3.79 billion worth of goods to GCC countries in FY2025, compared with imports of approximately $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, limiting their wages, bargaining power and long-term economic contribution.
According to the author, Pakistan’s challenge is not the absence of comparative advantage but the country’s inability to convert its workers, firms, products and strategic relationships into organised, certified and bankable commercial offerings.
Dr Iqbal’s proposed mission would operate through five permanent desks within the Special Investment Facilitation Council using institutions that already exist rather than creating another authority or administrative structure. These desks would focus on labour and skills certification, exports and supply chains, investment and contracts, defence-industrial cooperation and migrant protection.
