PIDE urges SIFC mission to capture $1.5tr Gulf project market

July 15, 2026 (MLN): The Pakistan Institute of Development Economics (PIDE) has recommended the launch of a dedicated "Middle East Recovery Mission" under the Special Investment Facilitation Council (SIFC) to help Pakistan secure a greater share of the Gulf region's expanding project and reconstruction market.

In a policy paper titled "Capturing the Middle East Recovery: From Labour Export to Contract Export," PIDE argued that Pakistan should move beyond its traditional reliance on labour exports by positioning local companies to win contracts, expand service exports, and participate in regional supply chains across the Middle East.

The report, authored by PIDE Professor of Economics and Registrar Dr. Nasir Iqbal, noted that Pakistan's economic engagement with Gulf countries remains heavily dependent on workers' remittances despite significant opportunities in sectors such as construction, logistics, engineering, healthcare, information technology, and post-conflict reconstruction.

According to the report, the Gulf's project and reconstruction pipeline is expected to exceed $1.5 trillion during the current decade, driven by initiatives such as Saudi Arabia's Vision 2030 as well as rebuilding efforts in Syria, Gaza and Lebanon. However, Pakistan has yet to establish a meaningful presence in these large-scale commercial opportunities.

Trade figures cited in the report showed Pakistan exported goods worth $3.79bn to Gulf Cooperation Council (GCC) countries in FY2025, while imports from the region stood at approximately $17.9bn, according to APP.

During 2025, more than 762,000 Pakistanis secured overseas employment, with nearly 61% classified as unskilled workers.

To address these challenges, PIDE proposed establishing five permanent desks within the SIFC covering labour and skills certification, exports and supply chains, investment and contracts, defence-industrial cooperation, and migrant protection.

The institute emphasized that the initiative should utilize existing institutions instead of creating a new authority.

The report also recommended certifying and insuring workers before overseas deployment, while strengthening the capacity of Pakistani firms in construction, logistics, healthcare, IT, and facilities management to compete for subcontracts, joint ventures, and commercial partnerships in Gulf markets.

Among other proposals, PIDE suggested introducing a Gulf Worker ID linked with NADRA, banking services, insurance, and skills certification, alongside launching a Pakistan Development Bond to mobilize overseas Pakistanis' savings for productive investment.

The institute estimated that the proposed mission could generate an additional $2-4bn in annual external inflows by its third year, rising to more than $5bn annually by the fifth year through higher-skilled remittances, increased exports, contract earnings, and defence-industrial collaboration.

PIDE urged the federal government to designate the SIFC as the central coordinating body for the initiative, approve a 90-day implementation roadmap, and ensure transparent and independently audited execution to maximize economic benefits for Pakistan.

Copyright Mettis Link News