Young professionals flee crisis-hit Pakistan in search of jobs 

Pakistani youth wait for their turn for a Capital Development Authority (CDA) job entry test in Islamabad on January 27, 2010. (Photo courtesy: AFP)
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Updated 31 January 2023
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Young professionals flee crisis-hit Pakistan in search of jobs 

  • Stagnant wages, living standards fuel ‘brain drain’ exodus 
  • Last year’s countrywide floods deepened economic woes 

KARACHI: Tahir took a leap of faith when he left Pakistan four months ago in search of a better and more prosperous future in Canada. 

Even with no job lined up, he made up his mind to leave as his homeland grapples with a worsening economic crisis that is driving thousands of young, educated workers to pack their bags. 

“I felt I needed a powerful passport and an escape plan if things go badly,” said Tahir, a former education worker who is currently job-hunting in Toronto and hopes one day to attain dual Pakistani-Canadian citizenship. 

He asked to use a pseudonym to protect his identity. 

More than 800,000 Pakistanis left the country of 220 million to take up jobs last year, according to regulatory and monitoring body the Bureau of Emigration and Overseas Employment, up from a pre-pandemic total of 625,876 in 2019, and 382,439 the year before that. 

Many more leave for education or other reasons, and do not return. 

Devastating floods last year compounded Pakistan’s economic problems, which include shortages of staple foods linked to a dearth of dollars and persistently high inflation that tipped 24 percent in January. 

Pakistan is struggling to quell default fears in domestic and international markets, with a $1.1 billion bailout tranche from the International Monetary Fund (IMF) stuck due to differences over a program review that should have been completed in November. 

As the government battles to alleviate the crisis, officials are also increasingly worried about the snowballing brain drain that could hamper the country’s eventual recovery. 

“The huge exodus of educated youth is of great concern,” Ahsan Iqbal, minister for planning, development and special initiatives, told the Thomson Reuters Foundation. 

“It is our responsibility to provide them an enabling environment to stem the emigration.” 

The government has launched several development initiatives which it hopes will help retain talent, he added. 

They include establishing 200,000 paid internships for young engineers, a 10-billion-rupee ($37.35 million) innovation fund and a 40-billion-rupee program to develop 20 poor districts. 

Frustrated youth 

Even before the current crisis, many young workers were keen to leave — frustrated by a decline in purchasing power and limited opportunities to improve their standard of living. 

Almost one in three Pakistanis aged under 30 would like to take a job abroad, found a survey carried out by polling firm Gallup Pakistan and its nonprofit subsidiary the Gilani Foundation last June, before the floods struck. 

That rose to above 50 percent among university-educated youth, said Bilal Gilani, executive director of Gallup Pakistan. 

Tahir, the job-seeker in Canada, said his generation were worse off than their parents, who were able to buy real estate, make investments and create wealth in decades past. 

“There’s disparity between what salaried people can afford and the income needed to generate savings and wealth, to sustain a family and good lifestyle independently,” he said during a WhatsApp call. 

More than a year of double-digit inflation has put a further squeeze on living standards, said one 33-year-old woman, who worked two jobs before leaving for Britain on a one-year student visa four months ago. 

“I just cannot afford to live in Pakistan anymore,” she said, asking not to be named. 

While in Pakistan, all her living expenses were taken care of by her parents, but increasingly she felt she was a burden on them, and is currently supplementing her savings with a part-time supermarket job in Britain. 

“I feel I made a 100 percent right decision in leaving the toxic cycle I was in,” she added. 

Another young worker, a freelance filmmaker, said he had left Pakistan for the Gulf due to frustrations over widespread corruption and payment delays that made it difficult to progress or do business. 

Since arriving in Dubai two months ago, he has already found work in his field which “pays better and on time.” 

“In Pakistan, payments were excruciatingly delayed with the last installment often remaining unsettled,” he said in a voice message, asking to speak on condition of anonymity. 

Better future 

Miftah Ismail, an economist who served as finance minister for five months in 2022, said fostering better educational and employment opportunities was vital to fighting Pakistan’s brain drain among the young. 

“Instead of bemoaning their exit, why not provide them an enabling environment so they do not leave?” he said. 

Nida Zehra, 26, a graduate student in the United States who left Pakistan in August 2022, has found work as a teaching assistant and hopes to stay on to pursue a career in journalism when she finishes her studies. 

Zehra said she felt safer in her US university town than she did in her home city of Karachi. 

“No one judges me and I’m treated on a par with my colleagues,” she said in a WhatsApp call. 

“I think we have the right to decide on a better future for ourselves, even if it means leaving the country.” 
 


Major Pakistan coalition partner opposes privatization of national airline ahead of IMF talks

Updated 06 May 2024
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Major Pakistan coalition partner opposes privatization of national airline ahead of IMF talks

  • The government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term IMF program to support the economy
  • The IMF has recommended privatization of state entities, increasing tax revenue and reducing duplicated expenditures for a new program

KARACHI: The Pakistan Peoples Party (PPP), one of the coalition partners in the Pakistani government, on Monday said it would resist privatization of the country’s national airline and other state entities regardless of its potential impact on the government’s talks with the International Monetary Fund (IMF) this month for a new bailout program.

Pakistan last month completed a short-term, $3 billion IMF program, which helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

An IMF mission is expected to visit Pakistan in the mid of May to discuss the upcoming budget, policies and reforms under a potential new program. Pakistan’s financial year runs from July to June and its budget for fiscal year 2025, the first by Sharif’s new government, has to be presented before June 30.

Pakistan’s Finance Minister Muhammad Aurangzeb on Monday said he was hopeful that the Pakistan International Airlines (PIA) and other privatization deals would get through the “finishing line” by early July.

“The IMF is not in our ten points, IMF is not part of our manifesto,” said Senator Taj Haider, a senior PPP figure, when asked if his party had assessed repercussions of its opposition to the government’s privatization move.

“Those who are the slaves of the IMF should be worried. We must stand on our own feet and not look toward the outsiders.”

The PPP, whose co-chairman Asif Ali Zardari is currently serving as the president of Pakistan, has formed a three-member committee to engage with the government on privatization issues. 

Haider said his party had already offered the government to hand over the Pakistan Steel Mills to the Sindh government which had the capacity to run it, while the PIA should be run through public-private partnership (PPP).

“Government entities, including the PIA and the Steel Mills, should not be privatized because they will sell their valuable properties and won’t make them sustainable like we have witnessed in the past,” he said. 

“No privatization has been successful, and no public-private partnership (PPP) has been unsuccessful.”

In the past, Haider said, privatization drives remained unsuccessful because the process had only been aimed at selling state properties.

“The PIA’s problem is an outcome of mismanagement,” he said. “If other airlines are making profit, then why PIA cannot do it.”

Speaking at a conference in Islamabad on Monday, Finance Minister Aurangzeb outlined reforms under a new IMF deal, saying the government had to broaden its tax base and increase the tax-to-GDP ratio.

“And the third one is the SOE [state-owned enterprises] reform,” Aurangzeb said. “Our prime minister has been very clear that the government has no business being in business … We need to and we will accelerate the privatization agenda.”

Hidayatullah Khan, president of a union of PIA employees, lamented that private airlines had been given several domestic routes of the PIA, while the aircraft of the national airline were left standing.

“If PIA is not making profit, it’s an issue of the management, whose policies have destroyed the airline,” Khan said, adding the airline employees would stage protests in Karachi and Islamabad to stop the privatization of the airline.

Ali Khizar, an Islamabad-based financial and development consultant, said the privatization of the PIA was not the “primary concern” of the IMF. 

“IMF has advocated for the privatization, including that of PIA, for quite some time, but its primary concerns are increasing taxation and reducing duplicated expenditures,” Khizar told Arab News.

“While privatization won’t greatly affect talks with the IMF, I believe PIA should indeed be privatized.”

Last week, Pakistan pushed back the deadline for companies to express interest in buying PIA to May 18, a day before the expressions had originally been due. The privatization commission says 10 companies have already expressed an interest.

Pakistan’s government has previously said it was putting on the block a stake of between 51 percent and 100 percent in the loss-making airline.

The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on privatization is key to helping cash-strapped Pakistan pursue further funding talks with the IMF.


US envoy meets parliamentary leader of Pakistan’s opposition, a key Imran Khan aide 

Updated 06 May 2024
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US envoy meets parliamentary leader of Pakistan’s opposition, a key Imran Khan aide 

  • Khan, who leads the PTI party, has accused Washington of siding with generals and political rivals to orchestrate his 2022 ouster 
  • PTI has since sought Washington’s support in investigating alleged crackdown on its supporters, ‘rigging’ of Feb. 8 general elections 

ISLAMABAD: United States (US) Ambassador to Pakistan Donald Blome on Monday held his first meeting with Omar Ayub Khan, the parliamentary leader of the opposition in the National Assembly and a key aide to former prime minister Imran Khan, the US embassy said.

Khan is the founder of Pakistan’s main opposition party, the Pakistan Tehreek-e-Insaf (PTI), which has accused Washington of siding with the powerful military and Khan’s political rivals to orchestrate his ouster from the PM’s office in April 2022. All three have denied the accusation.

The PTI has since sought support from US lawmakers in investigating alleged rights abuses and crackdown on its supporters in the wake of Khan’s unprecedented campaign of defiance against the country’s powerful military.

“US Ambassador Donald Blome met today with Leader of the Opposition in the National Assembly Omar Ayub Khan and other senior members of the opposition to discuss a broad range of issues important to the bilateral relationship, including US support for continued economic reforms, human rights, and regional security,” the US embassy said in a statement.

A spokesperson for Khan’s PTI told reporters Blome’s meeting with Omar Ayub had been requested by the US embassy through the Pakistani foreign ministry.

“Ambassador Blome underscored the United States’ support for Pakistan to engage constructively with the IMF on its reform program,” the US embassy said, adding that the envoy highlighted the importance of long-term reforms for sustainable economic growth of Pakistan.

Pakistan last month completed a short-term $3 billion program, which helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

The PTI, in a letter written to the IMF earlier this year, had asked the global lender to factor in the country’s political stability in any further bailout talks with Pakistan, according to party members familiar with the matter.

Khan’s opponents previously accused him of scuttling an IMF deal under a $6 billion Extended Fund Facility days before leaving his office, a charge he denies.

Pakistan narrowly averted default last summer, and its $350 billion economy has stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high 38 percent last May.

It is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year compared to negative growth last year.

Pakistan and the IMF are expected to begin formal talks for a fresh program after the arrival of an IMF team in Islamabad in the mid of May. Islamabad has said it expects a staff-level agreement by July.


Babar hoping paceman Rauf will regain full fitness and make an impact for Pakistan at T20 World Cup

Updated 06 May 2024
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Babar hoping paceman Rauf will regain full fitness and make an impact for Pakistan at T20 World Cup

  • Fast bowler Rauf has been included in an 18-man squad for the upcoming tours of Ireland and England
  • Pakistan has done well in last two T20 World Cups, reaching semifinals in 2021, final at 2022 tournament 

ISLAMABAD: Pakistan captain Babar Azam is hoping Haris Rauf will regain full fitness after a shoulder injury and make an impact at next month’s T20 World Cup.

Fast bowler Rauf has been included in an 18-man squad for the upcoming tours of Ireland and England, with Pakistan delaying its 15-strong party for the World Cup in the United States and West Indies until May 22.

The fitness of Rauf, Mohammad Rizwan, Irfan Khan and Azam Khan will be assessed during the seven T20s against Ireland and England.

“I wasn’t expecting that he (Rauf) would recover so early and start bowling again,” Babar told reporters in Lahore on Monday as the team prepared to fly out to Ireland, where the first T20 will be played in Dublin on Friday.

“There’s pressure on him to make a comeback. There’s lot of talk going around on his injury and how he will respond to it. But I think he will make a good response because when you give yourself proper rest mentally and physically, you can make a different impact.”

Rauf has been out since dislocating his shoulder in late February during the Pakistan Super League. Since then he has gone through rehabilitation at the National Cricket Academy in Lahore.

The seven-member selection committee, which also includes Babar, have named fast bowler Hasan Ali, who last played a T20 international in 2022, as backup for Rauf.

Babar backed the inclusion of Hasan after pace bowlers Zaman Khan, Mohammad Wasim and the PSL’s top wicket-taker Mohammad Ali were omitted.

“There’s no injustice with anyone. We debated a lot on the World Cup combination and Hasan is there as backup for Rauf because of his experience,” Babar said. “Zaman and Ali are new-ball bowlers but we already have enough new-ball bowling options.”

Fast bowler Mohammad Amir, who played in two T20s against New Zealand after ending his retirement, Shaheen Shah Afridi, Naseem Shah and Abbas Afridi are Pakistan’s pace options.

Under Babar, Pakistan has done well in the last two T20 World Cups, reaching the semifinals in 2021 at the United Arab Emirates and losing to England in the final at the 2022 tournament in Australia.

The chairman of the Pakistan Cricket Board, Mohsin Naqvi, has promised a cash award of $100,000 to every player if the team wins the tournament.

“What happened in the past is in the past, unfortunately we couldn’t finish the way we wanted,” Babar said. “We’re doubly confident and believe we can bring the trophy home.”

Pakistan starts its campaign against host United States in Dallas on June 6 before taking on arch-rival India in New York three days later.

White-ball head coach Gary Kirsten will likely join the team in England after completing his Indian Premier League assignment with Gujarat Titans.


Pakistan stocks continue to rally on Saudi investment optimism, decline in inflation

Updated 06 May 2024
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Pakistan stocks continue to rally on Saudi investment optimism, decline in inflation

  • A 50-member delegation led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak arrived in Pakistan on Sunday
  • Pakistan and Saudi Arabia have seen a flurry of bilateral visits in recent weeks that have fueled hopes of investment in South Asian country

KARACHI: Pakistan’s benchmark share index closed at another all-time high by registering a 1.2 percent gain as bulls celebrated the arrival of a high-level investment delegation from Saudi Arabia, analysts said on Monday.

The KSE-100 index witnessed a bullish trend, gaining an intraday high of 1,158.65 points that marked a 1.61 percent increase. It closed at 72,764.24 points, up by 1.20 percent.

Stock analysts said the major contributing factor behind the bullish close was the arrival of a 50-member Saudi business delegation in Pakistan for potential investments and a drop in inflation.

“Today’s all the bullish activity was because of the Saudi delegation visiting Pakistan to explore investment opportunities,” Sheheryar Butt, portfolio manager at Darson Securities, told Arab News. 

The delegation, led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan on Sunday. It comprises representatives of some 30 Saudi companies from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development.

Butt said the encouraging remarks by the visiting Saudi investment minister on Monday also played a key role in keeping the market in the green zone.

Addressing an investment summit in Islamabad, the Saudi minister said Pakistan was a “high priority” economic opportunity and the Kingdom believed in the potential of Pakistan’s economy, demographics and talent as well as location and natural resources.

Speaking at the summit, Pakistan Finance Minister Muhammad Aurangzeb said foreign investment was vital to macroeconomic stability in Pakistan and the visit of Saudi investors was a link in this chain.

Auzrangzeb said Prime Minister Shehbaz Sharif’s successful visit to Saudi Arabia opened the way for economic cooperation between the two countries.

“The visit of a delegation of Saudi investors to Pakistan is also a part of paving the way for this economic cooperation,” the minister said. “The government is now moving toward privatization and PIA [Pakistan International Airlines] will also be privatized.”

He said export-led growth, foreign direct investment (FDI) and excess to capital were top priorities of the government, and it was working on short, medium and long-term strategies as well as structural economic reforms.

Ali Nawaz, CEO of Chase Securities, attributed the bullish trend at the stock market to the arrival of the Saudi investment delegation.

“This news likely injected optimism into the market as it suggests potential for increased foreign investment, bolstering investor confidence,” Nawaz said.

Other factors, he said, included a decline in inflation that fueled a positive sentiment.

“Lower inflation rates typically indicate a healthier economic environment, fostering expectations of potential interest rate cuts in the future,” he added.
 


Pakistan’s deaf-staffed beauty salon provides economic opportunity, empowers hearing impaired

Updated 06 May 2024
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Pakistan’s deaf-staffed beauty salon provides economic opportunity, empowers hearing impaired

  • There are seven deaf beauticians out of a total of 12 employed at Options Salon in Abbottabad 
  • According to the World Health Organization, deaf population in Pakistan is around 10 million people

ABBOTTABAD: Eight years ago, while offering a training class at her Options beauty salon in the northwestern Pakistani city of Abbottabad, Nighat Aftab received an unlikely application: that from a deaf girl who wanted to attend the training and join her salon. 

“I didn’t have much experience working with such women and at first, I hesitated a little that how could I hire such a person whose language I don’t understand?” Aftab told Arab News in an interview earlier this month. “But then I said, ‘Come, join me’.”

Today, there are seven deaf beauticians out of a total of 12 employed at Options, which has since become a sanctuary for women with hearing and speech impairments, providing them economic opportunity, a chance to be financially independent and earn for their families, and a place where they can be part of a supportive, inclusive community.

According to the World Health Organization, the deaf population in Pakistan is around 10 million people. Pakistan has one of the lowest percentages of female labor force participation in South Asia and women with disabilities face even more impediments to employment.

“Previously, I used to work at a parlor in Islamabad where my salary wasn’t great, and I used to miss home a lot,” beautician Saima Mir told Arab News in sign language as Aftab translated for her. 

“Now I am very happy. I like working here. There are many here who cannot hear and speak, it makes me happy.”

Others also said they felt a “sense of belonging” at the Options Salon.

“I have my mother and father. They are old. I feel frustrated at home as there is nobody with whom I can talk and share,” Isma Mushtaq told Arab News. “I come here and I spend time here happily.”

While many of the salon’s loyal customers are now used to communicating with the deaf staff members, that was not always the case, Aftab recalled, saying she faced criticism in the beginning by clients struggling to communicate with her workers. To bridge the gap, deaf workers were teamed up with those from the hearing community.

“The difficulties we faced [with communication] in the beginning got resolved over time,” said Sobia Khan, a beautician from the hearing community. 

And the troubles had been worth it, Aftab said.

“I might have closed down the salon by now because my daughters are now married and I want to enjoy my own life but I am committed because of these young women [deaf workers] and I am unable to quit because their employment is attached to me,” she said. 

“And because of them, Allah has blessed me with health. I am able to come to work daily, even though I am not that healthy, but I am happy here.”