3.8m internal migrant workers will likely be laid off as Covid-19 crushes economy

LAHORE: As many as 3.78 million internal migrant workers across the country are expected to be unemployed due to the outbreak of Covid-19 and closure of businesses,says a report. 

The report compiled by senior economist Dr Nasir Iqbal of the Pakistan Institute of Development Economics (PIDE) revealed that the situation for the internal migrant workers is doubly alarming for those who stay away from homes to earn a livelihood.

While quoting the ‘Labour Force Survey 2017-18’, the report further revealed that the internal migrant workers remain largely ignored in all discussions whereas around 8.51 million migrant workers are working across Pakistan whereas 45 percent are engaged in informal activities including day wagers, construction workers and domestic helpers or factory workers.

The PIDE also stated in its report that more than 65 percent  migrant workers are residing in only 15 districts across Pakistan, with over a million workers just in Karachi, followed by major numbers in Lahore, Faisalabad, Rawalpindi and Islamabad whereas the closure of business activities would force the owners to lay-off their employees as some have already started doing that.

The PIDE assumed that informal workers, which comprise 45 percent of the total migrant labour force, would be the first ones to be laid-off which means around 3.78 million migrant workers would be left without their source of livelihood but not all sectors would face a similar situation.

According to the report, the majority of internal migrant workers are working in wholesale and retail, manufacturing, construction, transport and communication sectors, so employees in these sectors are expected to be hit the hardest.

The report also suggested that the policies for relief should be cognizant of the migrant workers and be based on minimising their movement.  “The current practice of local administration requiring people to register in their hometown for getting the unconditional cash transfers of Rs 12000 under the Ehsaas programme should be reviewed. It will lead to unnecessary movement and run counter to the lockdown intentions for corona prevention.”

Speaking to this scribe, Dr. Nasir Iqbal said, “Our focus is that the unemployed people get paid for a hand-to-mouth livelihood once and only the government can pay for it because the private sector cannot pay at such a high level. The private sector can only provide soft loans like Akhuwat is doing. We are working on small micro-finance schemes that how can government and private sector can facilitate them through these schemes.”

Another senior economist Dr. Anwar Shah while speaking to this scribe said, “We need to develop a pool on an emergency basis and ask all people and organisations to contribute in it. The contribution of the government can also come to this pool. All famous and trustable national level charitable organisations in Pakistan can join hands and announce the formation of such a pool with the permission of the government of Pakistan. This will give trust to people and make the accumulation of funds easy. The government should also ask people, who are losing jobs due to COVID-19 to provide their information online. This information can be collected by the National Database and Registration Authority (NADRA) under Ehsas programme. The pool organiser can start transferring funds to these people in the form of Qarz-e-hassan (interest-free soft loan) which these people can return after resuming jobs and that too in installments. The government can also ask all major commercial organisations such as banks, five-star hotels, Nestle and Pepsi Pakistan etc to submit their CSR funds (corporate Social Responsibility) in the pool.”

 

Shahab Omer
Shahab Omer
The writer is a member of the staff and can be reached at [email protected]

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