Pakistan is celebrating a historic surge in remittance inflows, USD 38.3 billion in FY 2024–25, up 27 percent from last year. This feels like a victory, but it also serves as a warning.

While this historic inflow eases the country’s current account deficit and strengthens foreign exchange reserves, the truth behind the numbers is harder to celebrate because most of this money comes from unskilled, low-paid labor abroad. However, this remittances phenomenon does not reflect, nor is it necessarily linked to strong macroeconomic foundations within country. Moreover, this model cannot secure Pakistan’s economic future.

From FY 1971 to FY 2025, over 14.4 million people migrated from Pakistan for employment. Till June 2025, around 336,442 workers left the country. But the majority of workers registered for employment abroad are unskilled or semi-skilled.

Around 84 percent of total workers abroad were unskilled labourers, primarily working as drivers, general laborers, cooks, and cleaners. In contrast, skilled and highly qualified workers made up a minor share of only 2.6 percent of the total.

Heavy reliance on unskilled or low-skilled workers is highly alarming and highlights a critical question: Can this surge in remittance with low-skilled manpower continue over the longer period? The answer is a clear ‘No’, since skilled workers can easily substitute unskilled workers.

Moreover, unskilled or low-skilled manpower faces difficult working conditions, earns lower wages, and contributes significantly less to technological transfer in society and economic development. This is the structural failure of Pakistan’s existing labour paradigm,........

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