Opinion | Greece boat tragedy exposes how human traffickers capitalise on Pakistan’s economic crisis

The desperate situation in Pakistan has led to the growth of people smugglers offering a swift exit from the country in exchange for large sums of money

Migrants are subjected to all sorts of exploitation by human smugglers on overcrowded vessels, with the harsh conditions often leading to sinking boats and loss of life

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A Pakistani man cries outside a reception and identification camp in Malakasa, Greece, on Monday, following the migrant boat sinking last week. Photo: Reuters

Published: 6:00am, 21 Jun 2023

Pakistan is experiencing a confluence of crises attributed to a decline in governance standards. Security challenges, chiefly posed by terrorism, have exacerbated the country’s economic deterioration, which in turn has given rise to energy shortages, rampant unemployment and soaring inflation rates.

As the nation’s economic predicament worsens, unscrupulous human traffickers are capitalising on the vulnerabilities of thousands of aspiring migrants who hope for better prospects in Europe. It is in this context that the overloaded ship sank into the waters off Greece.

Initial estimates suggest that about 80 people died. It is too early to say how many of those were Pakistanis, but Pakistani authorities are fearing the worst. Prime Minister Shahbaz Sharif declared June 19 a national mourning day.

As authorities move to act against human traffickers, there is a need to look at the push factors behind this exploitation of economic migrants from Pakistan.

Pakistan’s economy faces serious challenges. Its GDP growth rate is expected to drop to 0.5 per cent in 2023, compared to 6 per cent in 2022. Moreover, the International Monetary Fund has estimated the inflation rate might rise to 27 per cent in 2023. The unemployment rate has also increased from 6.6 per cent in 2020 to 7 per cent in April 2023.

These economic hardships have led to some unprecedented scenes. Free food distribution points in major cities, organised by charities, are inundated. Such is the desperation that several people died earlier this year while fighting to receive free food.

The Pakistani government has asked for economic help from the IMF and its close friends like China and the Gulf states. But it does not have enough resources to meet the needs of its growing population.

The traditional lenders like the IMF are also very careful dealing with Pakistan, where the endemic corruption of the elites has been a contributing factor to the economic crisis. With the IMF cautious to provide further loans to Pakistan, the government has imposed austerity measures and increased the general sales tax on goods and services.