The Pakistan Institute of Development Economics (PIDE) has urged the government to adopt a new strategy aimed at helping Pakistani companies secure contracts in the Middle East instead of relying mainly on labour exports.
In a policy paper titled Capturing the Middle East Recovery: From Labour Export to Contract Export, PIDE said Pakistan has strong political and economic ties with Gulf countries but continues to earn primarily through workers’ remittances while other nations secure high-value contracts in construction, engineering, logistics, healthcare and information technology.
According to the report, the Middle East is expected to offer more than $1.5 trillion worth of infrastructure and reconstruction opportunities this decade through projects such as Saudi Vision 2030 and rebuilding efforts in Syria, Gaza and Lebanon.
The institute noted that Pakistan sent more than 762,000 workers overseas in 2025, but about 61 percent were unskilled, limiting their earnings and long-term economic impact. During FY2025, Pakistan exported $3.79 billion worth of goods to GCC countries while importing nearly $17.9 billion, reflecting a wide trade gap.
To capitalize on regional opportunities, PIDE proposed establishing a Middle East Recovery Mission under the Special Investment Facilitation Council (SIFC). The plan calls for dedicated teams to promote skilled labour, boost exports, support Pakistani firms bidding for Gulf projects, strengthen defence-industrial cooperation and improve protection for overseas workers.
The report also recommends certifying workers before deployment, expanding exports of construction materials, pharmaceuticals, food products and surgical equipment, and enabling Pakistani firms to participate in joint ventures and subcontracting opportunities across the Gulf.
PIDE estimates the initiative could generate an additional $2 billion to $4 billion in annual foreign inflows within three years, with the potential to exceed $5 billion by the fifth year through higher-value exports, skilled employment and international contracts. It cautioned that these are indicative policy targets rather than guaranteed outcomes.
The institute further proposed introducing a Gulf Worker ID linked to NADRA, banking, insurance and skills certification, along with a diaspora-focused development bond to channel overseas Pakistanis’ savings into productive investments.
PIDE recommended that the prime minister designate SIFC as the lead body for implementing the strategy, arguing that Pakistan should position itself as a supplier of services, expertise and businesses—not just manpower—to the Middle East.
