Oman's shift to skilled economy may reshape jobs, remittance flows for Pakistan: report

Pakistan’s reliance on remittances continues to grow, with Oman emerging as a steady contributor, though changes in its labour market and economic structure could affect future inflows and employment for Pakistani workers. Remittances from Oman stood at $92.6 million in February, slightly lower than $105.6 million in January, while Gulf countries remained the dominant source of inflows, according to a news report. 

Saudi Arabia and the United Arab Emirates accounted for the largest share, sending $685.5 million and $696.2 million respectively, followed by Qatar at $102.8 million, Kuwait at $77 million and Bahrain at $44.8 million.

The outlook for Pakistani workers in Oman is being shaped by the country’s Vision 2040 plan, which aims to shift the economy toward non-oil sectors such as logistics, digital infrastructure and advanced services.

Non-oil activities now contribute more than 70% of Oman’s gross domestic product, with growth increasingly driven by technology-based and service-oriented sectors. As part of this transition, Oman is tightening labour market rules under its Omanisation policy, requiring firms to prioritise local hiring and limiting foreign recruitment to cases where local candidates are unavailable.

This shift is expected to change the demand profile for expatriate workers, moving away from low- and mid-skilled roles toward positions requiring digital and technical capabilities.

Many Pakistani workers in Oman are employed in construction, maintenance and logistics, sectors that may face pressure as the economy evolves and localisation policies expand.

Data shows that while Oman has strong digital infrastructure, with internet penetration above 95%, information and communication technology professionals make up only 2–3% of the workforce.

At the same time, more than 40% of jobs in the region now require some level of digital skills, highlighting a gap between infrastructure development and workforce readiness.

Analysts said this gap could create opportunities for workers with specialised technical skills, particularly in engineering, healthcare and system operations, while increasing competition for mid-level roles.

They noted that future employment prospects for Pakistani workers will depend on their ability to upgrade skills in areas such as data management, digital systems and industrial operations.

Experts also pointed to the need for closer cooperation between Pakistan and Oman on workforce development, including training programmes, certification systems and skill verification mechanisms.

Education specialists said developing digital skills can take several years, making early investment in training critical for sustaining Pakistan’s overseas employment and remittance inflows.