PIDE Proposes Middle East Mission to Boost Pakistan’s Exports and Business Opportunities
ISLAMABAD: The Pakistan Institute of Development Economics (PIDE) has proposed launching a Middle East Recovery Mission to help Pakistani businesses expand into Gulf markets and benefit from major infrastructure and reconstruction projects across the region.
According to a new policy paper, the institute believes Pakistan has significant opportunities to increase exports, secure international contracts, and strengthen economic cooperation with Gulf countries.
Focus on Emerging Regional Opportunities
PIDE noted that Pakistan has traditionally benefited from remittances, energy trade, and long-standing relations with Gulf nations. However, it says the country has yet to fully capitalize on opportunities in sectors such as:
- Construction and infrastructure
- Engineering services
- Logistics and transportation
- Information technology
- Healthcare
- Reconstruction projects
The report estimates that infrastructure and reconstruction initiatives across the Gulf and the wider Middle East—including projects linked to Saudi Vision 2030 and rebuilding efforts in countries such as Syria, Gaza, and Lebanon—could collectively be worth more than $1.5 trillion over the current decade.
Addressing Trade and Workforce Challenges
According to the report, Pakistan sent more than 762,000 workers abroad in 2025, but around 61% were categorized as unskilled, limiting earning potential for overseas workers.
The institute also highlighted Pakistan’s trade imbalance with Gulf Cooperation Council (GCC) countries. During FY2025, Pakistan exported goods worth approximately $3.79 billion to GCC markets while importing nearly $17.9 billion.
Key Recommendations
PIDE has recommended establishing a Middle East Recovery Mission under the Special Investment Facilitation Council (SIFC) to coordinate government and private-sector efforts.
The proposed mission would focus on:
- Skills development and certification
- Export promotion
- Investment facilitation
- Support for Pakistani companies seeking international contracts
- Protection and support for overseas workers
- Industrial and commercial cooperation
The report also recommends helping Pakistani businesses secure joint ventures and subcontracting opportunities while expanding exports of products such as construction materials, pharmaceuticals, and surgical equipment.
Potential Economic Impact
According to PIDE, the proposed initiative could increase Pakistan’s external inflows by $2 billion to $4 billion annually within three years, with the potential to exceed $5 billion annually within five years through higher-value employment, exports, business contracts, and industrial cooperation.
The institute clarified that these figures represent policy projections rather than guaranteed outcomes.
Additional Proposals
Among its recommendations, PIDE also suggested introducing a Gulf Worker ID linked with NADRA, banking services, insurance, and skills certification to improve support for overseas Pakistani workers.
The report further proposed launching a diaspora development bond to encourage overseas Pakistanis to invest their savings in productive sectors of the national economy.
PIDE has urged the federal government to designate the Special Investment Facilitation Council (SIFC) as the lead institution for implementing the proposed mission, arguing that Pakistan should view the Middle East not only as a destination for its workforce but also as a strategic market for exports, investment, and long-term business partnerships.
