Here’s How Pakistan Can Make Extra $1.5 Trillion Just from Gulf Countries

The Pakistan Institute of Development Economics (PIDE) has urged the government to launch a Middle East Recovery Mission to help Pakistani businesses secure contracts in Gulf markets and earn extra $1.5 trillion.

In a new policy paper, PIDE said Pakistan has long benefited from remittances, energy imports and close ties with Gulf countries, but has failed to capture major commercial opportunities in sectors such as construction, engineering, logistics, healthcare, information technology and reconstruction.

The institute estimates that infrastructure and reconstruction projects across the Gulf and the wider Middle East, including Saudi Vision 2030 and rebuilding efforts in Syria, Gaza and Lebanon, could exceed $1.5 trillion this decade.

Despite sending more than 762,000 workers abroad in 2025, around 61 percent were classified as unskilled, limiting their earning potential. Meanwhile, Pakistan exported $3.79 billion worth of goods to GCC countries in FY2025, compared with imports of nearly $17.9 billion, highlighting a significant trade imbalance.

PIDE proposed creating a Middle East Recovery Mission under the Special Investment Facilitation Council (SIFC), with dedicated desks to focus on skills certification, exports, investment, defence-industrial cooperation and migrant protection.

The report recommends certifying workers before deployment, helping Pakistani companies secure subcontracts and joint ventures, expanding exports of products such as construction materials, pharmaceuticals and surgical goods, and improving legal and financial protections for overseas workers.

PIDE estimates the 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. It noted that these figures are policy targets rather than guaranteed outcomes.

The institute also proposed 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.

PIDE has recommended that the prime minister designate SIFC as the lead institution for the proposed mission, arguing that Pakistan should treat the Middle East as a strategic market for its businesses and services rather than solely a destination for its workforce.