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ISLAMABAD: Low-skilled workers with modest education and limited assets seeking job in Saudi Arabia and the United Arab Emirates (UAE) pay the highest cost for acquiring a job, says a first of its kind survey.
The survey report titled “the Cost of Immigration” and released by the International Labour Organisation points out an alarmingly high cost of migration for low-skilled workers. On an average, they spend nearly $3,500 for their overseas employment. The survey was conducted by ILO with the support of the European Union.
Its conclusion is that large benefits associated with overseas migration of low-skilled workers are eaten up in visa fee paid to intermediaries who sells visas.
The report focuses on a wide difference in the cost of migration to Saudi Arabia and the UAE. The average cost of working in Saudi Arabia is almost twice ($4,290) as compared to the UAE ($2,358).
It is difficult to pinpoint the reason for this difference or why there is an apparent preference for working in Saudi Arabia, it says. It may be that working conditions and wages or cost of living are more attractive in Saudi Arabia than in the UAE. Average earning in Saudi Arabia is $480, compared to $387 in the UAE.
According to the report, if there is a fair system operating, it may help low-skilled workers in pulling their families out of poverty, sending their children to school and building their asset base and will lead to significant and sustained growth of income in future.
More than 80 per cent of reported migration cost is spent on visa fee, going to a sub-agent/broker or a relative/friend who helps the migrant in securing a job. The visa fee for Saudi Arabia is much higher than for the UAE. The high fee can be attributed to visa trading.
However, it is an undocumented fee paid to an overseas employment promoter and a sub-agent/broker or relative/friend who arranges the visa. Both promoters and sub-agents operating abroad seem to be the beneficiary of high visa charges. The visa provider in a destination country sells visas, particularly to Pakistanis working there to recruit other workers from their country.
The survey notes that improving the system does not require more rules and regulations or a greater role of the government or stricter and higher penalties. What is needed is measures that will help the existing institutions function better.
The report recommended that arbitrary powers of government-run and government-controlled institutions should be curtailed; contribution of players in visa market, primarily overseas employment promoters, should be strengthened to make them efficient and responsible; and prospective migrants should be empowered by providing them information on what is to be paid officially, and telling them about avenues where they can complain and get a fair hearing.
Published in Dawn, August 29th, 2016
