In an address to the National Assembly of Pakistan, Finance Minister Muhammad Aurangzeb assuaged concerns over the Iran war’s potential to disrupt the stream of remittances from Pakistani workers abroad to their families back home—especially for those living in Gulf Arab states. Pakistani expatriate workers in the Gulf Arab states supply between 40 and 50 percent of total remittances entering Pakistan, according to Aurangzeb.
March saw a large number of retaliatory Iranian drone and missile strikes against the Gulf Arab states, creating an increased risk to the approximately five million Pakistani expatriates in the region. As a result, foreign remittances spiked a record 17 percent in March—the largest single-month increase on record, reaching $3.8 billion. The spike could be attributed to two factors: one, regional panic from hostilities; and two, increased flight cancellations resulting in fewer workers being able to travel home for Eid and therefore choosing to send money instead.
Pakistan sends 96 percent of its migrant workers to live in the six member states of the Gulf Cooperation Council—primarily working in construction, transportation, and service industries. Of those expatriates, approximately 77 percent work in Saudi Arabia and the UAE, two countries that have seen the bulk of retaliatory Iranian attacks.
World Bank data from 2024 shows that remittances constituted 9.4 percent of Pakistan’s GDP, a figure that has been increasing year-over-year since 2000. Pakistan is one of the top five recipients of remittances worldwide.
