Brain drain costs economy $4.2 bn yearly
Pakistan, a nation abundant in human capital and youthful energy, has long depended on its diaspora to bolster its economy through remittances. While these inflows provide essential financial relief, they come at a steep price: the loss of skilled professionals, intellectuals, and innovators, a phenomenon widely known as brain drain.
It is important to delve into the economic and social costs of brain drain in Pakistan, juxtaposed with the benefits of remittances, and calculate the real opportunity cost of losing talent to foreign economies.
Brain drain refers to the emigration of highly educated and skilled individuals from one country to another, typically from developing to developed nations.
Pakistan: informal economy?
The national debate on the informal economy has acquired a new dimension given the views on its role in the country’s economy by two experts.
“In Pakistan, the informal sector is not an aberration. It is the economy’s lifeboat. Where the formal economy is hamstrung by high entry barriers and stifling compliance costs, the informal economy is nimble, responsive, and inclusive,” writes Nadeem ul Haque, former deputy chairman of the Planning Commission, and Shahid Kardar, former State Bank governor, in their recent joint article titled ‘In defence of the informal economy’.
With estimates ranging from 30-70 percent of GDP and over 70 percent of non-agricultural employment, informality underpins the real economy, they stated. The informal entrepreneurs are often more innovative, dynamic, and risk-tolerant than their formal counterparts.
PKI warns of agriculture collapse
The Pakistan Kissan Ittehad (PKI) has warned of imminent collapse of farming sector due to years of neglect and mismanagement and criticised the agricultural policies of the current government
During a press conference at the Multan Press Club on Sunday, PKI President Khalid Mahmood Khokhar painted a bleak picture of the current state of agriculture, claiming that farmers across the country were facing unprecedented financial distress.
“Agriculture in Pakistan is 100 percent devastated. Farmers have no capital left to cultivate the next crop, and for the past two years, they have not been paid fair prices for their produce.”
Trade gaps and remittance gains
As the curtain falls on FY25, Pakistan’s external sector presents a textured tale – an uneasy mix of fragile resilience and structural imbalance. The numbers offer a surface calm, but beneath them churn familiar anxieties: trade deficits, import dependency, and the perennial hope of remittances acting as a safety net.
For sweetener, consumers pay bitter price
Due to a lack of government attention, sugar prices have skyrocketed across the country, with an increase of up to Rs60 per kilogram at the retail level. Experts believe that the artificial sugar shortage is a direct result of inaccurate data and flawed decisions by federal institutions concerning sugar production and consumption.
In the midst of this crisis, sugar profiteers have become active once again, manipulating prices in major markets across Lahore. The government’s weak control has allowed profiteers to exploit the public, which is forced to buy sugar at inflated rates. In 2024, sugar was selling at Rs140 to Rs145 per kilo, but it is now being sold for Rs190 to Rs200 per kilo.
Pakistan imports over $600 mn worth of tea yearly
Pakistan imports over $600 million worth of tea every year, excluding an equal quantity smuggled under the garb of Afghan Transit Trade, and now ranks among the top tea importing and consuming countries.
The Food and Agriculture Organisation (FAO) reported that tea consumption in Pakistan increased significantly by 35.8 percent from 2007 to 2016. Tea has become a major import commodity, draining the country’s foreign exchange reserves each year.
More than 3,800 investors eye ev charging stations
In a major development towards establishing electric vehicle (EV) infrastructure across the country, more than 3,800 investors and companies have expressed interest in setting up EV charging stations, officials revealed on Sunday.
According to Managing Director of the National Energy Conservation Authority (NEECA) Dr Sardar Moazzam, around 30 to 35 operational EV charging stations have already approached the registration authority.
Chinese company eyes ict, energy sectors
A three-member Chinese delegation led by Lu Jie, Founder and Chairman of GuoDong Group, met Federal Minister for IT and Telecommunication Shaza Fatima Khawaja on Sunday.
The meeting took place on the sidelines of the Global Artificial Intelligence Conference in Shanghai.
The delegation showed strong interest in investing in Pakistan’s Information and Communication Technology (ICT) sector, especially in building telecom towers, data centers, and cloud computing systems.
Jie also expressed a desire to invest in Pakistan’s new energy sectors, including electric vehicle (EV) charging stations, smart city technologies, and advanced material manufacturing, according to a press release from the IT Ministry.
Climate finance boom and Pakistan
AS the world surpasses the $2 trillion mark in climate finance in 2024, a historic milestone that should inspire hope, countries like ours find little reason to celebrate.
While capital races toward clean energy and industrial decarbonisation, Pakistan, a nation acutely vulnerable to climate shocks, is once again left clutching pledges, not projects. The gap is no longer just financial; it is institutional, structural, and strategic.
The latest Global Landscape of Climate Finance report is a wake-up call. Climate finance reached $1.9tr in 2023 and likely crossed $2tr in 2024. For the first time, private finance led the way exceeding $1tr driven by electric vehicles, solar, and energy efficiency. Mitigation continues to dominate, attracting over 90 percent of total flows. Adaptation remains sidelined with just $65 billion globally.