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Pakistanis in North America

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Pakistanis in North America


The Express Tribune
By Shahid Javed Burki
March 10, 2013

After those in Britain and the Middle East, the third-largest Pakistani diaspora is in North America. It is also the community that is likely to have the deepest impact on its original homeland. Although the Pakistanis in the Middle East send much greater amounts as remittances to the homeland, the economic impact of the community in North America has been — and will be — of much greater consequence. In politics as well, the North American diaspora is likely to have a greater impact. One example of this are the waves that have already been created by the return from Canada of Tahirul Qadri, the preacher-politician. Qadri draws his support from both the communities of Pakistanis in various parts of the world, as well as those he has created in Pakistan. Each interacts with the other to produce a large base of support for the cleric. It is worth noting that the political significance of the diasporas in Britain and the Middle East is largely centred around the politicians who have taken refuge outside the country. The North American community of Pakistanis will be politically important in a different way. Once again, Qadri is a good example of this kind of politics.

What distinguishes the North American Pakistani diaspora from the ones in Britain and the Middle East is its composition, its relative wealth, its better integration with the host population and its ability to provide managerial expertise in a number of areas in which Pakistan lacks the needed skills. Given the importance of this community for Pakistan’s future, it will take more than one article to tell its full story. This will be the first of what will be a series of at least three. I will begin with an analysis of how the diaspora was formed and with a description of how its composition is changing.

The Pakistani North American diaspora is the youngest of the three large communities in various parts of the world. It began to be formed in the late 1980s when the United States relaxed its immigration laws and encouraged the immigration of people with specific skills. Of the skill shortages the United States was experiencing at the time, the most severe was for physicians, particularly those who were prepared to serve in rural areas. This brought in a large number of doctors from South Asia. The South Asians were preferred since they had the language skills enabling them to take up their assignments quickly.

As the first wave of migrants was made up mostly of professionals, Pakistanis in North America are economically and socially very different from those who reside in Britain and the Middle East. Unlike those two communities where per capita incomes are lower than the average for the host population, the diaspora in North America has a much larger per capita and per household incomes. Some estimates put these above the national average by 15 to 20 per cent.

What is the size of the North American Pakistani diaspora? This question has been asked and debated by analysts and scholars for several years. In my own work on the subject, I had suggested that about a million people of Pakistani origin live in the United States and Canada; perhaps, 850,000 in the former and 150,000 in the latter. The 2010 census in the United States could have clarified the issue pertaining to these numbers but didn’t do so as it asked the question of origin in a confusing way. For instance, the immigration officials in the United States identify the country of origin of the nation’s ‘naturalised citizens’ from the place of their birth. In my American passport, my country of origin identified implicitly is India since I was born in Simla. The census suggests that when the count was made, there were 363,699 people in the country of Pakistani origin. This was perhaps, the number of people who had moved from Pakistan to the United States and not those who were born in America of Pakistani parents. The census estimate also excluded the children born of mixed marriages. As the diaspora matures, more and more people of Pakistani origin are marrying outside their communities.

Some serious analysts have suggested numbers that are closer to my estimate. Adil Najam, for instance, in his pioneering work on philanthropy by overseas Pakistanis, suggests that the size of the Pakistan diaspora is at 500,000. The Pakistani embassy in Washington put the number at 700,000. These estimates were made several years ago. Even though after the 2001 terrorist attacks on the United States, obstacles have been put in the way of Pakistanis wishing to enter the country, the size of the community must be growing at the rate of 1.5 per cent a year. That is a combination of the natural increase in the population of Pakistani origin, along with a slight increase in the number of people who are still able to come to the United States. There are also illegals that don’t get counted in official surveys. I am, therefore, inclined to stay with my estimate of 850,000 of the size of the Pakistani diaspora in the United States and one million for all of North America. I will take up next week the subject of the economic weight of this community and its interaction with Pakistan.
 
It is worth noting that the political significance of the diasporas in Britain and the Middle East is largely centred around the politicians who have taken refuge outside the country. The North American community of Pakistanis will be politically important in a different way. Once again, Qadri is a good example of this kind of politics.

What distinguishes the North American Pakistani diaspora from the ones in Britain and the Middle East is its composition, its relative wealth, its better integration with the host population and its ability to provide managerial expertise in a number of areas in which Pakistan lacks the needed skills.

Hopeful stuff
 
The economic impact of the Pakistani-American diaspora

The Express Tribune
By Shahid Javed Burki
March 17, 2013

The composition of the Pakistani diaspora in North America has begun to change. As the professionals who came in as part of the first wave of immigration settled down, they brought in members of their families, as well as those who could provide them with domestic help. A number of UN-affiliated institutions allowed special visas on which domestic help could be brought in from Pakistan. In the Washington area, for instance, people who came in as cooks and maids to work in the households of the professionals working at the World Bank and the IMF, stayed on and have formed a small community, working in businesses such as lawn-care and food-preparation. Similar communities of low-skilled Pakistanis are to be found in the New York area.

The relative ease with which foreigners could enter the country before 9/11 meant that footloose Pakistanis could also slip into America. The illegals among the Pakistanis don’t constitute a significant size as they do in several European countries but they are present in North America as well. They are engaged mostly by the relatively well-to-do and well-established people of Pakistani origin. In Europe, the illegals are congregated in communities of their own; in the United States, they are to be found on the fringes of the established communities.

The Pakistanis in America have interacted with their homeland in several ways. The most profound of these influences has been in terms of the economic help the community has provided to their original homeland. The pattern of economic relations followed by the Pakistanis in North America is similar to those pursued by other diasporas. When the communities are young they seek economic security. This usually means investing in housing and creating a savings base from which they can finance unexpected expenditures. A bit later, the communities begin to help the needy members of the families they have left behind. The third phase involves working with institutionalised charities. Several of these, such as The Citizen’s Foundation, Development in Literacy, Shaukat Khanum Memorial Hospital and Friends of Pakistan hold well-attended fundraising galas in the cities where Pakistanis have a significant presence. In the fourth phase, the communities begin to think of making some investments in the homeland. Physicians of Pakistani origin have been the most active in this area. They have established large hospitals in Lahore and Islamabad. A Los Angeles-based group of industrialists of Pakistani origin is planning to build a children’s hospital in Karachi.

The fifth phase is reached a couple of decades after the formation of the diaspora. Some of the older members return home to spend their remaining years under the care of the extended family. The final phase — the sixth — is reached when large communities of foreigners begin to flex their economic muscle to create some political space for themselves. The Indian community in the United States has begun to do this. Two of its members have been elected state governors; one of them, Bobby Jindal of Louisiana, is the Chairman of the caucus of Republican governors. He is also considered to be one of the viable candidates for a senior position in the federal government in 2016 when the United States will hold its next presidential election. No Pakistani has made it to this kind of political level in the United States.

To appreciate the economic influence the Pakistanis living in America could exert on the country of their origin, we should have some idea about their wealth, sources of income and aggregate incomes. Their total annual income is of the order of $45 to $50 billion a year. The savings rate should be around 25 per cent of the income, which is typical of immigrant groups. This means that about $12 billion a year is being set aside and invested in the creation of assets. Since the diaspora was formed over a period of more than 25 years, I estimate the asset base of this community at about $175 billion. The income from this should be about $8 billion a year. Originally, salaries and wages were the main source of income. Now, with a sizeable asset base, one-sixth of the incomes are drawn from returns on investments. With these numbers as the background, we can begin to understand the source of remittances and other capital flows that originate from this particular diaspora.

In the last two decades, there was a 16-fold increase in the amount of remittances sent by Pakistanis living and working in the United States. These increased from $150 million in 1991-92 to 2.4 billion in 2011-12. This represents an increase of 15 per cent a year. The rate of growth in remittances from this particular source was almost four times the rate of increase in the national product. Another way of looking at this flow of capital is in terms of its contribution to the increase in GDP. Assuming that currently the incremental capital output ratio for Pakistan is four — meaning that it takes four per cent of GDP to be invested to generate a one per cent increase in the national product — about a 0.3 percentage point increase in national income could be attributed to the remittances from the United States. Could this amount increase even further and could it be used more effectively? I will take up these questions in the article next week.
 
What kind of investment opertunities can an ex-pat find in Pakistan? I have bought some property but I want something more than that. What about the stock market? Is it easily accessible for investment from abroad?
 
The composition of the Pakistani diaspora in North America has begun to change. As the professionals who came in as part of the first wave of immigration settled down, they brought in members of their families, as well as those who could provide them with domestic help.

In the last two decades, there was a 16-fold increase in the amount of remittances sent by Pakistanis living and working in the United States. These increased from $150 million in 1991-92 to 2.4 billion in 2011-12.

Majority of the IT jobs go to the Indians (and Pakistanis). Indian population is much larger so you obviously see a lot of Indians everywhere but Pakistanis represent their population in good jobs also. I have a few friends that are from India and Pakistan. Very sharp and smart people I have to admit.

The population of Pakistanis and Indians in the US is almost the same. The Pakistanis started to come in bigger numbers in early 70's and 80's. Some Indians came then too but Indians preferred the UK due to proximity to India. But the IT boom changed that from the 90's. The estimated number of Indians and Pakistanis is around 4-5 million each group. With Pakistanis first generation doing businesses and medical work and India's first generation in the US focused on Medical work. The second generations of both of these are primarily in medical, law, engineering and IT an then business. Indian community has been focused a LOT on buying US businesses for the past 5 years and they have sponsors from India that give them money to buy US businesses. While Pakistanis don't have that kind of financial backing. Indian community has a LOT of influence in the politics and everywhere else due to their nationalistic nature. While each Pakistani thinks they are the king of the world and represent the same divided nation aspect in the US as the one they show back home.
 
Majority of the IT jobs go to the Indians (and Pakistanis). Indian population is much larger so you obviously see a lot of Indians everywhere but Pakistanis represent their population in good jobs also. I have a few friends that are from India and Pakistan. Very sharp and smart people I have to admit.

The population of Pakistanis and Indians in the US is almost the same. The Pakistanis started to come in bigger numbers in early 70's and 80's. Some Indians came then too but Indians preferred the UK due to proximity to India. But the IT boom changed that from the 90's. The estimated number of Indians and Pakistanis is around 4-5 million each group. With Pakistanis first generation doing businesses and medical work and India's first generation in the US focused on Medical work. The second generations of both of these are primarily in medical, law, engineering and IT an then business. Indian community has been focused a LOT on buying US businesses for the past 5 years and they have sponsors from India that give them money to buy US businesses. While Pakistanis don't have that kind of financial backing. Indian community has a LOT of influence in the politics and everywhere else due to their nationalistic nature. While each Pakistani thinks they are the king of the world and represent the same divided nation aspect in the US as the one they show back home.

4-5 million Pakistanis in the U.S? Source?

I'll be surprised if there are even 1 million Pakistanis....
 
Thəorətic Muslim;4054791 said:
Dude, where do you live? Theres a million ***** in New York alone. Common now.

very politically active and patriotic community i must say...Im a student in the US at present; had many visits to NYC including last year for independence day parade

I've discovered that there are Pakistanis in North America doing more for Pakistan than some of our own people IN Pakistan. Best diplomats for their country.

Pray for the day when more overseas Pakistanis can bring their talents and wealth back to their motherland
 
very politically active and patriotic community i must say...Im a student in the US at present; had many visits to NYC including last year for independence day parade

I've discovered that there are Pakistanis in North America doing more for Pakistan than some of our own people IN Pakistan. Best diplomats for their country.

Pray for the day when more overseas Pakistanis can bring their talents and wealth back to their motherland

But we should also remember people like Haqqani who play their own dirty games too.
 
It may not be just hard currency. Some may genuinely believe in their different opinions about what would be best for Pakistan.

a country of 180 million with a millions strong diaspora will not always be on the same page (ideologically, politically etc)
 
Thəorətic Muslim;4054791 said:
Dude, where do you live? Theres a million ***** in New York alone. Common now.



There are ~700k Pakistani persons in USA.
 
a country of 180 million with a millions strong diaspora will not always be on the same page (ideologically, politically etc)

That is a good point. Does that mean we should not be so quick to label those holding differing opinions as traitors?
 
4-5 million Pakistanis in the U.S? Source?

I'll be surprised if there are even 1 million Pakistanis....

Source: the very respectable US Census Bureau. Read the PDF. Note, a lot of Pakistanis don't put 'Indian' as their race. Instead they use 'Asian' which is normally used for Chinese, Philippines, Thailand, Singapore, Malaysia, etc, etc.
A lot of time, if they look white like people from the Northern side of Pakistan, they straight up write 'White' as their race...so you'll have to count those in to and that's hard. But overall, there is 10+ million Muslims in the US. Out of those, there is the biggest community from Pakistan representing about 4-5 million. Now, you can add Indian Muslims to it also as they come for IT jobs too:
http://www.ssa.gov/aapi/2010census-data.pdf
 
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