Gulf uncertainty may hit remittances

KARACHI: Uncertainty in the Gulf region has started affecting Pakistan’s economy on multiple fronts, with a possible slowdown in remittances emerging as a key concern, market sources said.

They said Pakistan was facing among the highest petroleum prices in the region, which had increased the cost of production and transportation, making exports less competitive in the international market.

However, those tracking foreign exchange inflows said remittances could see a slowdown in May and may come under further pressure in the next financial year.

“We deal with the exchange market and the market is getting the feeling that despite Eidul Azha, inflows were not high. Pakistanis usually send higher remittances to celebrate Eid,” said a currency expert.

Concerns grow over Pakistani workers in UAE losing jobs

Concerns grow over Pakistani workers in UAE losing jobs

A currency dealer said remittances in April fell by almost $300 million compared to March.

March recorded inflows of $3.831 billion, the highest during FY26. “But March also included the last 10 days of Ramazan, when inflows usually remain high,” the dealer said.

Pakistan’s sources of foreign inflows have been declining for years. During the first 10 months (July to April) of FY26, net foreign direct investment fell to $1.4bn from $2bn in the same period last year, showing a decline of 31pc.

Similarly, inflows in the equity market and domestic bonds........

© Dawn Business