EDITORIAL: The federal government’s new soft loan scheme is a much-needed initiative that could reshape Pakistan’s approach to overseas employment. By offering up to Rs1 million in loans for prospective workers seeking jobs abroad, the programme addresses multiple issues—facilitating migration, ensuring workforce competitiveness, and reducing the risk of exploitation.
More importantly, by linking financial assistance with vocational training, it ensures that workers heading to destinations like Saudi Arabia, for example, where the job market is expanding rapidly, are equipped with the necessary skills to secure decent employment rather than becoming part of the unskilled labour force that struggles to sustain itself.
Saudi Arabia’s Vision 2030 has created a strong demand for skilled workers in various sectors, from construction and healthcare to IT and hospitality. Mega projects like Neom City, expanding infrastructure, and the kingdom’s growing entertainment sector require a qualified workforce.
Pakistan, with its large labour pool, is well-positioned to meet this demand — but only if its workforce is trained accordingly. Too often, Pakistani workers in the Middle East are engaged in low-paying jobs due to a lack of specialised skills. Worse, in some cases, individuals unable to find work have resorted to begging, tarnishing the country’s image.
The new loan programme helps remedy this by ensuring that workers are not just financially able to go abroad but also adequately trained to contribute meaningfully to the economies they enter.
A major benefit of this initiative is its targeted nature. Rather than simply facilitating migration, it ensures that those leaving the country have tangible skills that align with employer needs in host countries.
This is a far more sustainable approach than sending out untrained labourers who may end up unemployed, exploited, or stuck in low-wage cycles. Pakistan’s previous labour export policies have often focused on sheer numbers rather than quality, leading to many workers facing hardships abroad. By emphasising vocational training, this scheme acknowledges that the global job market values skill sets over mere manpower.
The loan programme also extends to providing financial assistance for laptops, benefiting students, freelancers, and young entrepreneurs. This aligns with global employment trends where digital skills are becoming increasingly crucial.
Freelancing and remote work opportunities have allowed many Pakistanis to earn in foreign currencies without leaving the country, and facilitating this segment of the workforce is a step in the right direction. The government’s initiative complements ongoing efforts to strengthen Pakistan’s digital economy and enhance youth employment prospects.
However, for this initiative to be truly effective, it must be backed by a robust training framework. The government must work closely with industry stakeholders, both local and international, to ensure that training programmes are aligned with actual job market requirements rather than generic skill sets. This is especially crucial for Saudi Arabia, where job openings are increasingly specialised.
The soft loan scheme is a step in the right direction, but its success hinges on implementation. Proper oversight is needed to ensure funds are allocated transparently and to the right candidates.
The government must also monitor whether recipients of these loans are securing meaningful employment abroad. If executed well, this initiative has the potential to transform Pakistan’s labour export model — moving away from low-skill migration toward a system where Pakistanis secure high-value jobs abroad, benefiting both themselves and the national economy.
Copyright Business Recorder, 2025
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