Islamabad: The Pakistan Institute of Development Economics (PIDE) on Wednesday urged the government to launch a ‘Middle East Recovery Mission’ through the Special Investment Facilitation Council (SIFC) to help Pakistan shift from labour export to contract-led exports and capture opportunities in the Gulf’s trillion-dollar project market.
The Pakistan Institute of Development Economics (PIDE), in its latest Policy Viewpoint titled “Capturing the Middle East Recovery: From Labour Export to Contract Export,” called for immediate launch of the initiative to enable Pakistan to export contracts, services, goods and firm-level expertise instead of relying primarily on labour exports.
Authored by PIDE Professor of Economics and Registrar Dr Nasir Iqbal, the report said Pakistan’s economic ties with Gulf countries remained significant but structurally weak, with the country earning mainly through remittances while securing only a limited share of commercial opportunities in construction, logistics, engineering, hea
lthcare, information technology and regional reconstruction.
The report estimated the Gulf’s project and reconstruction market at over US$1.5 trillion during the current decade, including Saudi Vision 2030 projects and reconstruction needs in Syria, Gaza and Lebanon, but noted Pakistan continued to benefit largely from workers’ wages rather than project contracts and supply chains.
It highlighted that Pakistan exported goods worth US$3.79 billion to GCC countries in FY2025 against imports of around US$17.9 billion, while more than 762,000 Pakistanis went abroad for employment in 2025, with nearly 61 per cent classified as unskilled.
PIDE proposed that the Mission should operate through five permanent desks within the SIFC, focusing on labour and skills certification, exports and supply chains, investment and contracts, defence-industrial cooperation, and migrant protection, using existing institutions instead of creating a new authority.
The report recommended certifying, registering and insuring workers
before deployment, while preparing Pakistani firms in construction, logistics, healthcare, IT and facilities management to secure subcontracts, joint ventures and project partnerships in Gulf markets.
It further proposed introducing a Gulf Worker ID linked with NADRA, banking, insurance and skills certification, besides launching a Pakistan Development Bond to channel diaspora savings into productive investment.
PIDE estimated the proposed Mission could generate an additional US$2-4 billion in annual external inflows by the third year, with the potential to exceed US$5 billion by the fifth year through higher remittances from skilled workers, increased exports, contract revenues and defence-industrial cooperation.
The institute urged the federal government to designate the SIFC as the coordinating platform for the initiative, approve a 90-day implementation framework and ensure transparent and audited execution to maximise economic gains for Pakistani workers and businesses.
