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Saturday October 12, 2024

Addressing the issue of brain drain

where the fiscal expenditure on their education-funded by taxpayers-yields no return as these individuals do not contribute back to country’s taxes.

By Dr Noor Fatima
August 14, 2024
An airport staffer walks past the entrance of international departures at the Islamabad airport. — Reuters/File
An airport staffer walks past the entrance of international departures at the Islamabad airport. — Reuters/File

The father of the nation Quaid-i-Azam Mohmmad Ali Jinnah placed great importance on the youth and their role in nation building. At a public meeting in Dhaka on March 21, 1948, while addressing youth he said:

“My young friends, I look forward to you as the real makers of Pakistan, do not be exploited and do not be misled. Create amongst yourselves complete unity and solidarity. Set an example of what youth can do. Your main occupation should be in fairness to yourself, to your parents, in fairness to the State, to devote your attention to your studies. If you fritter away your energies now, you will always regret. Pakistan is proud of its youth, particularly the students, who are nation builders of tomorrow. They must fully equip themselves by discipline, education, and training for the arduous task lying ahead of them.”

On this 14th of August, while the words of the Quaid echo in our ears, the ground realities paint a bleak picture concerning the youth of Pakistan. Today, one of the most critical issues Pakistan faces is brain drain. This phenomenon, a long-standing concern in many countries, has recently turned into a crisis in Pakistan.

According to the Bureau of Immigration and Overseas Employment, over 700,000 people left Pakistan in 2024 in search of a brighter future, compared to more than 811,000 who left previous year. This surge in emigration reflects an alarming trend.

Brain drain, defined as the exodus of educated and skilled individuals from under developed countries to the developed countries of the world, results in significant economic losses for developing nations. Economically, this is referred to as “human capital flight,” paralleling the capital flight triggered by unstable economic policies in recent years. The loss extends beyond economics to the social sphere, as the emigrants often include scientists, academicians, professors, researchers, and students. Key factors driving this exodus include economic instability, lack of opportunities, corruption, nepotism, and political uncertainty.

The outflow of skilled individuals severely impacts the country economically. Each departure signifies failed economic policies and inadequate investment in human capital. Brain drain represents a sunk cost, where the fiscal expenditure on their education-funded by taxpayers-yields no return as these individuals do not contribute back to the country’s taxes.

This trend hampers national development, stifles innovation, and undermines competitiveness. The primary factors behind the recent brain drain surge are economic insecurity, political instability, hyperinflation, fluctuating exchange rates, insufficient investment in education, and a lack of job opportunities. As people seek better earning prospects abroad, the Pakistani economy faces the consequences.

Human capital’s role in innovation and production is crucial for any economic system. Urgent policy review is needed in Pakistan to foster “human capital formation” and mitigate brain drain and enhance productivity of the existing workforce.

Looking at successful examples in the region, China’s “Thousand Talents Plan” offers a model that attracts scientists and entrepreneurs through attractive salaries, research funding and other incentives. China’s heavy investment in education, R&D, and infrastructure created a conducive environment for professionals. Investing in education, R&D and providing job opportunities through public-private partnerships can further this goal in our country as well. Private sector collaboration has historically boosted East Asian economies post-1990s crisis.

Ireland is another example of a country that has heavily invested in education and skill development, attracting multinational operations in technology and pharmaceutical industries. The government later supported startups, fostering innovation and economic growth.

Singapore has diversified its economy by shifting from conventional manufacturing to finance and technology, attracting businesses with strong legal protections and a low-tax structure.

South Korea has also focused on technology and innovation, with government-backed initiatives linking universities and industry. As a result, companies like Samsung and Hyundai have captured global consumer markets and provided significant employment opportunities, helping retain talent within the country.

Germany is another example in the developed countries for its significant investment in research, innovation, and apprenticeships integrated with university education. This approach has produced a highly skilled workforce and stabilised the job market through high-quality manufacturing. These countries have demonstrated phenomenal growth by strategically investing in innovation, education, and favourable business environment.

In the current economic climate, embracing digital economy can significantly curb brain drain. The digital economy, encompassing IT growth and broader applications, enhances production efficiency through large-scale data processing and analysis. Digitalisation can transform Pakistan’s economy by improving eLearning, payment accessibility, and partnering with tech companies for relevant training programs.

Healthcare is a critical area for improvement via digitisation. Telemedicine can provide rural areas with specialist consultations, improving access to limited health services and creating new job opportunities. Hospitals can use Health Information Systems (HIS) to maintain patient records digitally, share data across facilities, reduce investigation costs, and enhance data analytics for health trends, aiding policy updates.

Economic opportunities can also arise from the growth of technical industries, digital marketing, IT services, and the gig economy. E-commerce platforms can expand market reach through online sales. Digital platforms can improve governance and public service delivery, reducing transactional costs, increasing transparency, and enhancing citizen engagement and trust. Digital verification can streamline social protection programs and service delivery efficiency. Promoting lifelong technical learning and digital literacy can ensure the effective use of digital tools, with digital hubs fostering new technology commercialisation. Estonia’s transformation into e-Estonia serves as a model for Pakistan in e-governance and human capital formation through widespread digital service provision.

The challenge is not only in facing the brain drain but also in providing incentives to retain returnees. Policies to attract and retain returning professionals should include tax breaks, grants, and career development opportunities.

Pakistan can create a wide range of job opportunities in sectors such as manufacturing, services, and technology. Additionally, fostering a suitable workplace environment is crucial for retention, as job dissatisfaction often drives emigration.

A comprehensive policy framework is necessary to address the root causes of brain drain and devise mechanisms to mitigate it. Pakistan’s future job creation and development lie in leveraging digital technologies to build a more skilled and productive workforce, ultimately driving human capital formation and sustainable development.

The Quaid had a clear vision for the future which he outlined for student. In a teply to address presented by the students of Islamia College on 12th April, 1948, he asserted:

“You must learn to distinguish between your love for your Province and your love and duty to the State as a whole. Our duty to the State takes us a stage beyond provincialism. It demands a broader sense of vision, and greater sense of patriotism. Our duty to the State often demands that we must be ready to submerge our individual or provincial interests unto the common cause for common good. Our duty to the State comes first; our duty to our Province, to our district, to our town and to our village and ourselves comes next. Remember we are building up a State, which is going to play its full part in the destinies of the whole Islamic World....We must develop a sense of patriotism, which should galvanize and weld us all into one strong nation.”

On another occasion he said:

“Nature has given you everything. You have got unlimited resources. The foundations of your State have been laid, and it is now for you to build, and build as quickly as you can. So go ahead I wish you God Speed.”

The vision is clear, but the youth find themselves at a loss to materialise the dream of their Quaid. It is now up to our state to stop this flight of human capital from our country and implement policies to utilise this great asset in building a strong nation, as envisioned by our Quaid.

— The author is a political economist and the winner of prestigious Martin Luther King Award