KARACHI: Saudi Arabian companies are offering free work visa to attract Pakistani workers, reflecting a slump in the kingdom’s economy.

Meanwhile, local recruiting agents say Pakistanis — mostly labour class — are still going for Saudi jobs despite the fact that thousands of workers — mostly labourers working in the Saudi construction industry — from Pakistan, India, Bangladesh and Nepal are stuck in the kingdom and have not received their salaries for months.

Work visas for KSA were once hot cakes and extremely costly; sometime the visa buyer had to pay his entire salaries of 6 to 12 months to meet the cost.

To enter and work in KSA legally, a worker needs a Kafeel (sponsor). Permission from the Kafeel is needed to leave the country, buying a car/house, and even opening a bank account.

“Fifty per cent Kafeels (Saudi individuals or companies offering sponsorship to workers) are not charging fees these days,” says Mr Mazhar, who runs a recruiting firm in Karachi.

He said local agents of Kafeels are minting money in the name of ‘Kafeel fee’.

However, sources — within the recruitment business and having links to Saudi companies — say the economic situation is not good for workers.

When questioned why Pakistanis are still going to the Kingdom, sources said those having government jobs have no problems.

“It’s only the private sector employees — mostly related to the construction industry — who are facing problems but highly educated and skilled people have faced no such issue in Saudi Arabia,” they added.

“The major reason behind Pakistanis seeking work in Saudi Arabia is that there are no jobs in Pakistan for them. These are frustrated people who are willing to take risks to go to the Kingdom despite knowing that things can go much worse,” explained Mr Mazhar.

Unpaid for months

In a telephonic conversation with Dawn, A highly skilled engineer working in Saudi Arabia said he was not getting his salary for the past nine months.

A doctor working in the kingdom said most of the skilled foreign staff working in hospitals has been replaced with locals.

“Foreign physicians and surgeons are slowly being replaced too,” the doctor added.

So far, foreign doctors employed in government hospitals are getting regular salaries.

Falling remittances

Recently, the State Bank of Pakistan said a 16pc increase was noted in the number of Pakistanis proceeding abroad in 2016. Out of these, 47pc went to Saudi Arabia. However, the SBP did not specify in which sectors Pakistanis are getting jobs in the kingdom.

The 20pc decline in July 2016 remittances compared to July 2015 is being considered as a warning sign for Pakistan which is highly dependent on remittances. In FY16, Pakistan received remittances worth $20 billion.

The State Bank stresses that the 20pc decline has technical reasons: June received very high remittances due to Eidul Fitr and July received less than normal inflow due to 10 days holidays which created a bigger gap.

The oil price shock badly hit the Gulf countries particularly Saudi Arabia. Pakistanis working in the kingdom provide more than 60pc remittances for the country. Pakistan also saved over $4bn as windfall due to massive decline in oil prices which reduced its oil import bill.

The government has yet not come out with a strategy to address falling exports, declining foreign investment and changing economic dynamics in the Middle East.

Published in Dawn September 4th, 2016