Recent data from the Bureau of Emigration & Overseas Employment reveals an unprecedented surge in migration during 2022 and 2023. Highly skilled migrants soared to 45,000, while highly qualified migrants reached 23,000, highlighting a dramatic spike in labour migration in 2023. The number of ‘highly skilled’ individuals seeking employment abroad surged by 119% and ‘highly qualified’ by 26.6% from 2022 to 2023. Notably, the two-year total of 107,288 skilled migrants surpasses the five-year total of 100,039 from 2017-2021
Based on the latest Pakistan Economic Survey for 2023-24, over 13.53 million Pakistanis have officially migrated to work in more than 50 countries by April 2024. This places Pakistan in the seventh position among the leading countries of migrant origin, according to the International Migration Report of 2022.
Understanding migration decisions is a nuanced process in Pakistan, but the classical “Push & Pull Theory of Migration” simplifies it by suggesting that people migrate due to push factors (e.g., economic hardship, conflict) from their origin and pull factors (e.g., better economic prospects, quality of life) in the destination.
Amid Pakistan’s ongoing challenges, the recent uptick in migration is driven by major push factors, particularly political instability. This instability has led to economic instability, hampering the government’s ability to manage debt and interest payments, thereby straining the country’s finances. Additionally, financial constraints and poor planning of the government have exacerbated power sector issues, resulting in the partial or complete shutdown of about 50 percent of industrial units. The ongoing political instability is prompting many to seek better prospects elsewhere.
International migration is a double-edged sword. While it provides benefits at both micro and macro levels, it also has negative economic consequences that slow down development opportunities.
In the realm of international migration, migrant individuals stand to gain significantly. By seeking employment overseas, migrants frequently secure higher-paying positions, thereby boosting their income. This journey also offers a rich cultural tapestry that nurtures personal growth, alongside the promise of safer, more stable living environments. Exposure to fresh skills and professional experiences further enriches their career path, while networking opens doors to future opportunities.
Households also stand to gain significantly from the international migration of a family member. Migrants frequently send remittances back home, boosting household incomes and enabling better living standards, educational pursuits, or entrepreneurial ventures. Moreover, returning migrants often bring back valuable skills and experiences abroad, which not only enhance their job prospects but also benefit others in their community. Remittances sent by migrants are also a potential source of diversification of income sources and serve to bolster household resilience to hedge against shocks.
At a macro level, international migration is a catalyst for economic prosperity, cultural enrichment, and diplomatic harmony. Migrant remittances play a crucial role in strengthening foreign exchange reserves, thereby stabilizing national currencies and enhancing the balance of payments. As per the Pakistan Economic Survey, remittances to Pakistan reached $27.4 billion in FY-23. This places Pakistan sixth among the leading countries in terms of remittance receipts, with the remittances to GDP ratio exceeding 7 percent.
International migration plays a crucial role in enhancing the labour market dynamics of the country of origin by exporting excess labour. Pakistan’s current labour force stands at 71.76 million, with 4.51 million individuals unemployed. Moreover, the labour force is expanding by 1.5 million annually, a number that exceeds the capacity of Pakistan’s current economic landscape to absorb. Thus, migration helps improve labour market flexibility, ensuring that the country can manage its youth bulge and sustain its workforce at optimal levels.
Draining talent– the emigration of highly skilled individuals– has short-run and long-run adverse effects on the originating country. In the short-run, it leads to an immediate reduction in skilled professionals, creating gaps in essential services like healthcare, education, and engineering, and causing a decline in workforce productivity. Remaining workers face increased pressure, resulting in burnout, while organizations incur higher recruitment and training costs.
In the long-run, persistent brain drain slows economic growth due to reduced innovation and competitiveness. It creates educational and knowledge gaps and leads to the loss of intellectual capital, crucial for research and development. Additionally, long-term shortages in healthcare and education professionals deteriorate the quality of these essential services.
Addressing the brain drain in Pakistan hinges on tackling economic pessimism rooted in political instability. Achieving political stability in Pakistan requires key elements including transparent governance, stringent anti-corruption measures, stable electoral processes, empowered democratic institutions, national unity, and economic reforms. Strengthening law enforcement and encouraging civil society engagement also play crucial roles in creating a stable political environment conducive to sustainable development and citizen well-being. Moreover, by promoting national identity and collaborating with the diaspora, countries strive to create an environment that not only retains talent but also attracts skilled individuals back, ultimately mitigating the adverse effects of brain drain.
