More
than 50,000 illegal Pakistani workers in Saudi Arabia would face deportation
after July 3, who are not only bread-winner for their families, but also play a
key role in the economy in the form of remittances.
Many
of them are hoping that strong links between the PML-N government of Pakistan
and the Saudi kingdom can save them. According to new labour laws announced by
Saudi Arabia, overseas workers are restricted to work for their sponsors only
in the field registered in their residence papers. Riyadh took this initiative
to employ its growing labour force in different fields.
The
unemployment rate in Saudi Arabia is around 12%, of which 40% are high-school
graduates. In order to boost employment, the labour ministry wants to implement
Nitaqat system, designed in 2011. According to Nitaqat, every company has to
employ 6-30% native people depending on the size and nature of work the company
does.
Every
country has the right to accommodate its labour force first but overseas
workers in Saudi Arabia are more skilled than the local populace.
With
stricter laws, Saudi Arabia is trying to reduce the labour black market among
an estimated nine million foreigners working in the country. The new policy
allows workers to correct their record within the grace period of three months
which will end in the first week of July. More than 1.5 million of them have
changed their residence status since April ahead of a planned crackdown on
illegal expatriates, said the labour ministry.
According
to passport authorities, more than 180,000 expatriates have left the kingdom
since the announcement of new labour regulations. After the July 3 deadline,
illegal workers staying in the kingdom will face up to two years of
imprisonment and fine of up to 100,000 riyals (Rs2.7 million).
The
grace period would be helpful for those who have expired visa and illegal
status to correct their record. Most of these are South Asians, who number
around four million. As foreign workers queue up outside of government offices
and consulates of their respective countries in sizzling heat to legalise their
status, many of them ask the authorities to extend the amnesty deadline.
If
previous instances are any indication, there is a strong relationship between
the PML-N leadership and the Saudi kingdom, sparking hopes that the new
government of Pakistan can play a vital role in solving the issue. The Foreign
Office spokesman has said that the embassy in Riyadh is helping Pakistanis to
legalise their status. Despite this, thousands of workers seem to be trying to
leave the country because there are many hurdles in the process.
However,
the government has so far not sent a delegation to handle the situation. On the
other hand, India did send a senior delegation to Riyadh to avoid deportation
of about 75,000 Indians.
Implications
for remittances
Remittances
from foreign workers are important to the economies of countries such as the
Philippines, Sri Lanka, Bangladesh, India and Pakistan. Saudi Arabia is the
largest source of remittances for Pakistan, though most of the Pakistani
workers there are associated with low-paid jobs.
Remittances
sent home by overseas Pakistanis touched $12.8 billion in 11 months (July-May
2012-13) of the current fiscal year with the hope that the figure will cross
$15 billion by year-end. However, the situation in Saudi Arabia may serve as a
stumbling block.
In
the 11-month period, remittances from Saudi Arabia stood at $3.8 billion,
accounting for 29% of the total. Monthly data shows that in March remittances
from the kingdom stood at $352 million, which increased to $392 million in
April but due to the new labour policy they fell to $380 million in May.
This
drop of $12 million caused the decline in overall remittances in May, when they
fell $23 million as compared to April.
According
to the new labour policy, the Saudi government will create a database of worker
salaries which will affect remittances. Saudi Arabian Monetary Agency will
monitor the amount which an expatriate wants to send home and will compare it
with his salary. If he sends more than his salary, he will be investigated.
It
is projected that remittances from Pakistani workers in Saudi Arabia have
plummeted about $30-50 million in June.
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