KARACHI: The present account deficit of Pakistan is shrinking and as per the current report issued by the State Bank of Pakistan (SBP) after financial coverage assembly in July 2019, the deficit has gone all the way down to $12.7 billion, nearly 30% lower than final yr.
The discount got here largely by means of demand suppression and clampdown on development. Regardless of a number of forex depreciations and incentives, the export sector couldn’t be resuscitated.
Whereas it is smart to concentrate on the standard dollar-earning avenues such because the textile sector, the nation ought to undertake a multi-pronged strategy and go away no stone unturned to safe sustainable international inflows. One such avenue is worth creation within the manpower exported to varied nations such because the Gulf area.
It’s apparent that the continuing slowdown in financial system will end in many individuals dropping their jobs and discovering one other one could be an arduous activity contemplating all companies are both downsizing or holding the fort until they see a dovish stance from the central financial institution.
Subsequently, it’s crucial for the federal government to discover new markets in a bid to accommodate the flood of job-seekers who’re both graduating from schools or have been made redundant because of the financial slowdown.
Though remittances are rising as reported within the current financial coverage assertion, they’re removed from reaching their true potential.
The workforce panorama around the globe is evolving phenomenally, however we’re unable to catch up quick sufficient to fulfill new demand.
For example, Gulf nations now want a better variety of expert employees, largely white collar, geared extra in the direction of the companies sector, nevertheless, we’re nonetheless providing semi-skilled or unskilled labour power. Identical to the federal government is specializing in worth creation in export-oriented items, there must be related concentrate on expert workforce to be exported to international nations which might, in flip, remit extra by securing well-paying or extremely demanded jobs.
Mannequin to observe
The function mannequin that Pakistan can observe to revamp its manpower provide worth chain is from one other Asian nation, the Philippines, whose financial system depends closely on offering extremely expert, skilled and tailoured workforce in step with necessities from around the globe.
The World Financial institution’s April 2019 Migration and Growth Temporary revealed that the $33.eight billion in remittance flows to the Philippines have been solely behind India’s $78.6 billion, China’s $67.four billion and Mexico’s $35.7 billion.
The demand for Overseas Filipino Workers (OFWs) is rising and they’re now demanding higher advantages and perks.
Owing to the diversified workforce unfold throughout varied areas of the world, OFWs are nonetheless in a position to ship again 6% extra remittances from across the globe regardless of the financial slowdown witnessed because of the US-China commerce struggle.
Authorities of the Philippines has taken many initiatives by means of its consulates across the globe to repeatedly gauge trending necessities in labour market of the host nation after which feed them again to the ability growth centres throughout the Philippines specializing in getting ready its workforce to fulfill these challenges.
Additionally, consulates of the Philippines and expert growth our bodies work hand in hand to make sure that Filipino employees will not be solely skilled adequately however in addition they land the correct jobs that pay nicely apart from offering welfare and authorized assist for the employees who’re in some kind of bother as they land in another country.
Totally different mindset
If we evaluate this to the scenario in Pakistan, the second any employee leaves the nation, he’s left to take care of himself. More often than not, the employee might need the correct ability set however not the correct perspective and mindset to undertake a brand new tradition and system.
Many of the manpower suppliers are mainly involved with their fee and their motto is to get the particular person rapidly on the airplane with the paperwork accomplished and they don’t seem to be very a lot involved with the features resembling intently matching job expertise or assessing job readiness of the employee.
It’s excessive time for the federal government of Pakistan, which is specializing in decreasing poverty and bridging fiscal gaps, to revamp the at the moment dormant Ministry of Abroad Pakistanis and Abroad Pakistanis Basis (OPF) for conducting analysis on what’s being adopted across the globe such because the OFW mannequin.
Additionally, it’s vital that every one the ministries, manpower suppliers and ability growth centres throughout the nation work as a crew with the community of consulates throughout the globe to unlock the actual potential of remittances and guarantee their sustainability because the nation navigates by means of a more durable world financial outlook.
The author is a monetary market fanatic and connected to Pakistan’s shares, commodities and rising know-how