Pakistan’s talent exodus: How high cost of living is fueling the brain drain

ISLAMABAD: Asad Ejaz Butt, a Pakistani economist, returned home after completing his graduate studies in Canada, eager to contribute to his country’s progress.

However, despite landing prestigious jobs under two finance ministers, the growing economic crisis made it difficult for him to meet basic needs like paying rent. Faced with skyrocketing inflation, Butt ultimately left his coveted government role and moved back to North America to pursue further education.

“The passion to serve my country was overshadowed by financial realities,” Butt shared from Massachusetts. “The tipping point came when salaries simply couldn’t keep up with inflation.”

Butt’s story is becoming all too common in Pakistan. A massive brain drain is hollowing out one of the world’s most populous nations, with the country losing skilled professionals from every industry.

As inflation soars and the cost of living becomes unbearable, talented individuals like doctors, engineers, and financial analysts are leaving the country in search of stability and better opportunities abroad.

In 2023, Pakistan saw its highest outflow of talent in years, with over a million skilled workers leaving over the past three years. The nation’s already struggling economy is further weakened as businesses, hospitals, and financial institutions lose valuable human resources.

Veqar Islam, CEO of JBS, a technology company in Karachi, highlighted the growing desperation among citizens. “There’s a stark difference between wanting to leave for better prospects and leaving because there’s nothing left.”

According to Bloomberg, Pakistan’s financial sector has been particularly hard-hit. Major banks have witnessed a record number of employees seeking jobs abroad, while companies scramble to find replacements.

Even though Pakistan’s stock market has performed well thanks to IMF loans, many professionals are choosing to leave the country, frustrated by rising living costs and limited opportunities.

For those staying behind, wages simply don’t keep up with inflation, with average salaries ranging between PKR 50,000 to 200,000 ($180 to $720), making it tough to survive. According to Mettis Global, the government hopes that remittances from overseas workers might provide some relief, but it’s clear that no nation can thrive by losing its top talent.

Though some officials remain optimistic, like Ali Pervaiz Malik, the state minister for finance, it remains uncertain whether the measures to stabilise the economy will be enough to curb the growing exodus.

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