The Pakistan Institute of Development Economics (PIDE) has warned that rising tensions in the Middle East could lead to a decline of $3–4 billion annually in Pakistan’s remittances. Employment opportunities and remittances from abroad are expected to decrease.
According to the report, around 6 million Pakistanis are working in the Middle East, and annually 700,000–800,000 Pakistanis migrate to Gulf countries for employment. If the conflict continues, by 2026, around 500,000 Pakistanis may not be able to go abroad for work.
The document also warns of the potential return of another 500,000 Pakistanis from these countries, which could put additional pressure on Pakistan’s domestic job market.
The report said that remittances account for about 10% of Pakistan’s economy, with Saudi Arabia and the UAE being major employment markets for Pakistani workers.
Heavy dependence on Gulf economies poses a risk to the country’s overall economic stability. The Middle East conflict could hinder Pakistan’s economic recovery.
PIDE recommended expanding employment opportunities in new countries to reduce this reliance.
