Gilani, Ijaz

Iqbal, Munawar

Khan, M. Fahim

English

IDS OpenDocs

Research Report Series No. 127 
LABOUR MIGRATION FROM PAKISTAN TO THE MIDDLE 
EAST AND ITS IMPACT ON THE DOMESTIC ECONOMY: 
PART II (Cost-Benefit Analysis) 
Ijaz Gilani 
M. Fahim Khan 
Munawar Iqbal 
June 1981 
PAKISTAN INSTITUTE OF DEVELOPMENT ECONOMICS 
POST BOX NO. 1091, ISLAMABAD 
(Pakistan) 
LIST OF CONTENTS 
LIST OF TABLES 
(ii) 
ACKNOWLEDGEMENTS 
(iv) 
(v) 
INTRODUCTION 
(vii) 
CHAPTER 1 
FRAMEWORK FOR THE COST-BENEFIT ANALYSIS 

4 


7 

9 
10 
11 
12 
13 
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CHAPTER 2 
ESTIMATES OF THE NET COST-BENEFIT 
OF EMIGRATION TO THE MIDDLE EAST 
15 
17 
18 

20 
21 
Table 1 
Cost-Benefit Calculations 
22 
Table - 2 
Calculation, of Consumption And Saving Costs of 
Emigration by Occupation 

25 
Table 4 
Remittances by Occupation (Rs.) 
Unskilled 
Labours 
Skilled 
Labour 
Service 
Workers 
Clerical 
Workers 
Professional 
Workers 
15,035 
18,301 
21,978 
20,000 
38,014 
8,700 
10,000 
6,088 
19,618 
15,673 
1,353 
1,647 
1,978 
1,800 
3,421 
25,088 
29,948 
30,044 
41,418 
57,108 
Table - 2 
27 
Replacement or Training Cost 
Unskilled labour and service workers have been assumed to have no 
replacement costs in view of the abundant labour supplies in the country 
and of the fact that this labour does not need any substantial training. 
For the rest of the occupations, the social cost of training as mentioned 
in Chapter 4 of Part I of this Report (Research Report No. 126) have been 
used. Assuming that the costs shown in Chapter 4 are the present value 
of the training cost, this has been converted with a 10 percent discount 
rate, into an annual cost of replacement, The costs of replacement for 
different occupations are shown in Table 6. The cost of replacing engineer 
has been used to represent the average cost of the whole group of 
professional workers including doctors, nurses, teachers, etc. This 
seems reasonable, as engineers accounted for more than 60 percent of the 
total emigrated professional workers. 
• Table 6 
Replacement/Cost (Rs.) 

29 
incomes differ with occupations. The estimate of distribution for diffe-
rent occupation groups is shown in Table 8. This distribution parameter-
has been calculated on the basis of household income including remittances. 
Table 8 
Distribution Weights 
All Migrants 32611 0.7 
Table - 2 
Conversion Factors. 
Table - 10 
Cost/Benefit At Accounting Prices (Accounting Rs.) 
32 
The net benefit calculations by occupations are summarized in 
Table 11. 
Table 11 
Net Benefit of Emigration by Occupation 
CHAPTER 3 
SUMMARY AND CONCLUSIONS 





4o 
3A detailed analysis of this subject is awaiting further data. The 
following observations can however, be made on the basis of existing 
information. 


CHAPTER 4 
POLICY IMPLICATIONS 







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BIBLIOGRAPHY 
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Labour migration from Pakistan to the Middle East and its impact on the domestic economy: part II (cost-benefit analysis)

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Labour migration from Pakistan to the Middle East and its impact on the domestic economy: part II (cost-benefit analysis)

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