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The Iran war exposes Pakistan's Gulf dependence

May 4, 2026

Millions of South Asian migrants work in the Middle East. Their remittances power Pakistan's economy, surpassing even exports. Now the Iran war threatens this lifeline, exposing Pakistan's vulnerability to Gulf shocks.

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Millions of Pakistanis work in the Middle East and the remittances they send home are a crucial pillar in their homeland — worth more than exports and accounting for around 10% of the country's GDP.

With oil prices rising and regional uncertainty growing, economists warn that Pakistan is highly exposed to any slowdown in Gulf economies. And a prolonged regional conflict could weaken hiring, reduce new migration and increase pressure on a fast‑growing domestic workforce.

As the Iran war highlights Pakistan's dependence on Gulf labor markets, questions are growing about how sustainable this economic model is in an era of recurring regional shocks.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.