Thinking Beyond Brain Drain Problem Of Pakistan: Pros and Cons

Brain drain of skilled workers is a problem in every developing country. Skilled workers and labour markets want migrations for their better job and future opportunities for their families. Pakistan is facing an acute brain drain situation due to many factors. Pandemic COVID-19 has changed international trends. Increasing trend of freelancing, flexible working hours and online job opportunities has moved developing countries’ population to the next step; that is to switch their place for high demands of their occupations. 

Cross-border job search has been healthier for the developing countries economic growth. But the extreme brain drain leads nations towards lack of outputs, low economic growth and dropping level of potential.  

People of Pakistan are moving in search of greener pastures. But Grass is not always green on the other side. They have to face cross-cultural issues, long term unemployment, food and health issues in the journey to fulfill their dreams.  

Quick Statistics for Brain Drain Situation in Pakistan

Unemployment is the top reason for the brain-drain situation in Pakistan. Out of 276,000 graduated engineers only 60,000 were employed. So there is the reason why 3,000 teaching staff, 25,000 electricians, 2,500 pharmacists, 500 nurses and 13,000 Agri-graduates left the country for foreign offerings during 2018-19! (Tribune Express, 2019). According to surveys and data search 625,000 in 2019 and 765,000 in 2022 left Pakistan for foreign offers. Following graph shows MIgrations and Remittances inflows in the last few years.  

Source: Bureau of Emigration & Overseas Employment Pakistan

This data shows that from 2006 to 2015 migrations increased and remittances also increased. The situation of brain drain was worst in 2015, as 900,000 Pakistanis migrated but remittances also increased..These remittances and inflows are very healthy for economic growth and development of the country. The problem occurs when migrations are increasing but remittances are not rising. In that scenario, there is a total lose-lose situation.

Remittances inflows in Pakistan (Source: FRED Economic Data, 2020)

This graph shows that remittances increased from 2017 to 2020. Data shows that remittances increased by 6.52% to 9.90% in million US dollars (FRED Economic Data, 2020). While in 2000, the graph of remittances was extremely down. Year 2000 was the worst year for remittance inflows in Pakistan.

Remittances inflows in Pakistan (Source: State Bank of Pakistan)

This latest analysis of data from the State Bank of Pakistan shows a decrease in remittances from 8219 million US Dollars to 7685 million US Dollars in the last three months of 2022. A significant fall in remittances is expected, as per the State Bank of Pakistan expectations. Insatiable economic and political conditions are potential factors that  encourage migrations and discouraged remittances inflows. 765,000 Pakistanis migrated in 2022 and more migrations are expected in 2023.

Migration destinations of Pakistanis

Source: Bureau of Emigration & Overseas Employment

According to BEOE (Bureau of Emigration & Overseas Employment) Data, 15 destinations are common and favourite destinations of Pakistani youth. They are  the United States, the United Kingdom, Saudi Arabia, Norway, Bahrain, Greece, Iraq, Italy, the Republic of Korea, Kuwait, Malaysia, Oman, Qatar and the United Arab Emirates. Following graph shows job shares captured by Pakistanis in the international market.   

Source: Bureau of Emigration & Overseas Employment Pakistan

Pros & Cons For Developing Country Beyond Migrations

The study finds that there is a bright as well as darkside of migrations. 

ProsCons
Migrations increase education, job and healthcare vacancies and opportunities for the developing country. Migrations can cause a fiscal deficit.
Reduces demand for food, water and all living needs.Flight of innovative ideas
Healthy technology transfer is expectedLoss of potential entrepreneurs
Boosts foreign direct investments.Loss of education and health care investment by the Government.
Enhances financial security through remittances inflowsShortage of skilled workforce.
Reduces international transactions costs.

Reasons & Remedies Of Brain Drain Problem

Let’s have a look at some common Reasons, Consequences, and remedies of brain drain.

Reasons

  • Bad economic and political conditions
  • Low law and accountability
  • Devaluation of pak rupee
  • Lack of job opportunities
  • Low Education opportunities
  • Low Health Care
  • No research and development
  • Conventional system
  • No business opportunities
  • Complex process to register companies

Remedies

Although it is not easy to retain youth in the economic instability. But there are some remedies to prevent from the danger of brain drain

  • Favorable working environment for youth
  • Availability of enough jobs
  • Stable law and order situation
  • Easy business registration process
  • Microfinance-loan availability on easy installments.
  • Safety and security for business growth

Proactive Action to Stabilize Pakistan Though Migrations

The positive side of Migrations cannot be ignored. The migrations are healthy factors as it reduces unemployment, decreases demand for basic needs, enhances international trade, improves technology transfer, boosts foreign direct investments and advances remittances inflows. Government can take proactive actions to stabilize Pakistan through migrations. 

1. Protection of families left behind according to the Emigration Ordinance, 1979. As the families are receiving remittances, their safety and security must be addressed and the Government must consider this as a serious consent. According to the Emigration Ordinance,1979, the government takes 21$ every month for the safety & security, education, financial assistance and health care insurance for the families left behind. This is a very effective remedy, but unfortunately not implemented and controlled.

2. According to documentation, Community Welfare Attaches (CWA) provides protection to the migrants to 15 destinations: the United States, the United Kingdom, Saudi Arabia, Norway, Bahrain, Greece, Iraq, Italy, the Republic of Korea, Kuwait, Malaysia, Oman, Qatar and the United Arab Emirates. If plans are properly implemented and controlled, the migrations can become real potential to stabilize Pakistan. This protection to the migratents will create future job opportunities in the international market. This welfare community is also able to handle extreme situations like death or criminal charges in the 15 countries.

3. Overseas employment promoters (OEP) is a private community which controls employment affairs for the overseas Pakistanis. They are working very effectively for the potential supply to the international market, as they deal in Business-to-Business labor supply. Most of the OEPs are unlicensed. Their policies can become very fruitful for the Government if they are controlled and supported by the Government. 

4. Non-Governmental Organizations (NGOs) are not prominent in sending labor to the developed countries. NGOs not only create skilled workers, but also find a better and sustainable life for the youth of Pakistan. By Government support, the NGOs can create more sustainable labor supply to the international job market. 

Conclusion

Every under-developed country faces a Brain drain situation. Migrations are encouraged, when political and economic instability rises. Although there are many dark sides of brain drain, the positive side of Migrations is often ignored. In the year 2015, migrations were 900,000 from Pakistan, then remittances & foreign direct investments rose as a positive point.

Migrations reduce unemployment rate, lowers the demand for basic needs like education, healthcare, food and residence. Migration encourages healthier economic growth, as the origin country gets remittances & foreign direct investments. They also stimulate technology transfer and international trade, as positive economic inflows. If the migrations are positively controlled through the private-Government collaboration, it can become a blessing to economic growth and stability. 

References

FRED Economic Data. (2020). Remittance Inflows to GDP for Pakistan. Retrieved Dec, 2022, from https://fred.stlouisfed.org/series/DDOI11PKA156NWDB

Tribune Express. (2019, Dec 20). Brain drain: Ten million Pakistanis out for greener pastures. Retrieved Dec, 2022, from https://tribune.com.pk/story/2121628/brain-drain-ten-million-pakistanis-greener-pastures

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