Did you know that the UAE has Suspended labor Visa?

In recent news, it was announced that the United Arab Emirates (UAE) has suspended labor visas for unskilled Pakistani workers as part of a move to reduce population growth in the country. The move follows a long-standing effort to reduce reliance on cheaper, loosely regulated foreigners employed in the country’s labor market.

Over the past several years, the UAE has seen a large influx of migrants coming into the country, many of them from Pakistan. This has led to the country’s population growing rapidly and straining the country’s infrastructure and resources. To stem this tide and create more equitable job opportunities for its population, the UAE has now suspended labor visas for unskilled Pakistani nationals.

The suspension of labor visas will have an immediate effect on the job market in the UAE’s construction and hospitality industries, which largely make up the assortment of unskilled occupations Pakistani immigrants have traditionally filled. This could lead to a shortage of labor in these sectors and lead to an increase in wages as employers compete for fewer workers.

The effect on the Pakistani economy could be significant. It is estimated that around 450,000 Pakistanis work in the UAE. This represents a significant portion of the population, with the World Bank estimating that remittances from these expatriates fuel around 4% of Pakistan’s economic growth. The suspension of labor visas could lead to a decline in remittance payments, thus impacting the economy of Pakistan. The ban will have a significant impact on the country’s economy and its people’s financial well-being, considering that the Gulf nation sends over $450 million in remittances every month.

According to Pakistani officials in the Gulf, such reports are “baseless” and there is no ban on Pakistani nationals seeking visit visas to the Gulf nation. The situation has evolved, however, and uncertainty surrounding the issuance of visas to Pakistanis, especially unskilled workers, remains a cause for worry in the Pakistani expatriate community.