Key Takeaways
- Pakistan Institute of Development Economics (PIDE) suggests launching a Middle East Recovery Mission.
- The mission aims to secure contracts and capture commercial opportunities worth up to $1.5 trillion in the Gulf region.
- PIDE recommends certifying workers, expanding exports and improving legal protections for overseas workers.
The Pakistan Institute of Development Economics (PIDE) has proposed a comprehensive strategy to boost Pakistan’s economy by leveraging its close ties with Gulf countries. The initiative, known as the Middle East Recovery Mission, is designed to secure contracts worth up to $1.5 trillion in sectors such as construction, engineering, logistics and healthcare.
According to PIDE, despite sending over 762,000 workers abroad in 2025, only about 39 percent were classified as skilled or semi-skilled, limiting their earning potential. This highlights the need for a more strategic approach that focuses on skills certification and export expansion.
The proposed mission would operate under the Special Investment Facilitation Council (SIFC) with dedicated desks focusing on various aspects including skills certification, exports, investment, defence-industrial cooperation and migrant protection. The report recommends certifying workers before deployment to ensure they are equipped for higher-value employment opportunities.
PIDE estimates that this initiative could generate an additional $2-4 billion in annual external inflows within three years, potentially exceeding $5 billion by the fifth year through higher-value employment, exports, contract revenues and defence-industrial cooperation. These figures are policy targets rather than guaranteed outcomes.
The institute also proposes introducing a Gulf Worker ID linked to NADRA, banking, insurance and skills certification, alongside a diaspora-focused development bond to channel overseas Pakistanis’ savings into productive investments. This would help in better tracking and support for workers abroad.
PIDE argues that the Middle East should be treated as a strategic market for Pakistani businesses and services rather than solely a destination for its workforce. The prime minister is recommended to designate SIFC as the lead institution for this proposed mission, emphasizing the importance of a coordinated approach.
The report highlights Pakistan’s potential in sectors such as construction, engineering, logistics, healthcare, information technology and reconstruction, particularly given ongoing projects like Saudi Vision 2030 and rebuilding efforts in Syria, Gaza and Lebanon. These projects are estimated to exceed $1.5 trillion this decade.
