Page 62 - CMA Journal (Mar-Apr 2026)

"Remittances account for nearly 10% of Pakistan's GDP and Conclusion
help stabilize foreign reserves. Out of $38.3 billion in
remittances Pakistan received in 2025 (Shujaat, 2026), nearly The security of the Gulf region underpins Pakistan's export
$20.89 billion (54.5 per cent of the total) originated from the channels, energy sector and remittances. In this regard,
GCC countries such as Saudi Arabia, the UAE and Qatar (SBP, Pakistan is actively working to protect its external sector
2026). The ongoing instability in the Gulf region, particularly from further disruption by advocating peace talks,
the uncertainty surrounding the future of labor markets, maintaining balanced relations across the Middle East and
may affect the in ow of remittances and thus would reinforcing trust with its economic partners. The country has
signi cantly impact Pakistan's ability to maintain its external the potential to transform its external sector from a source of
balance and foreign exchange reserves. A decrease in vulnerability into a driver of sustainable economic growth
remittances can exacerbate Pakistan's nancial through consistent policy execution, institutional
vulnerabilities and can push it to rely on external debt, which strengthening and infrastructure development.
would be tantamount to a loss of scal control." — Friday
Times, 23 April 2026 References
o Pakistan Bureau of Statistics (PBS) – Trade Data
Import payments in Pakistan predominantly depend on
o https://www.pbs.gov.pk
export proceeds and workers' remittances. A signi cant
o World Bank – World Integrated Trade Solution (WITS) Pakistan Pro le
portion of these remittances originates from the GCC
o https://wits.worldbank.org/CountryPro le/en/Country/PAK
countries. Any disruption in these in ows would not only
o Trading Economics – Pakistan Exports to UAE
affect import payment settlements but also place stress on
o https://tradingeconomics.com/pakistan/exports/united-arab-emirates
the local currency, potentially leading to depreciation of the
o Arab News – Pakistan GCC Trade Figures
Pakistani Rupee and making imports more expensive. At the
o https://www.arabnews.com/node/2622059/pakistan
same time, the cost of exports may also rise as imported
o Lahore School of Economics – Pakistan-GCC Trade Study
inputs become more expensive, thereby affecting overall
o https://lahoreschoolofeconomics.edu.pk
export competitiveness.
o Pakistan Today (Pro t) – Export Strategy & GCC Focus
Economic Strategy o https://pro t.pakistantoday.com.pk
o The Express Tribune – Export Targets & Policy Direction
Pakistan is gradually shifting its economic focus, with key o https://tribune.com.pk
emphasis on expanding its footprint in IT and digital services o Dawn News – Trade Trends and Regional Exports
expor ts, engineering goods and value -added o https://www.dawn.com
manufacturing. The IT exports of Pakistan reached a historic o Ministry of Information Technology and Telecommunication
high of $3.8 billion in FY25 and this performance o https://moitt.gov.pk/
underscores the increasing importance of IT and the
growing global demand for digital services. However, export
expansion remains closely linked to energy imports, creating
the need to expand renewable energy to reduce reliance on
imported fuels and lower energy costs. As per the World
Economic Forum on August 19, 2025, Pakistan is
experiencing a transformation in the energy sector as
households and businesses are adopting renewable energy
sources, and the Government of Pakistan is also actively
pursuing large-scale renewable energy investments to
achieve its clean energy goals.
In addition, Pakistan is also working on logistics and About the Author: Mr. Abbas Raza Varyala is a senior
infrastructure by improving ports and trade facilitation international trade, Islamic finance and compliance expert with
systems, as regional connectivity initiatives gain importance. over 20 years of experience in trade finance, Islamic banking,
Pakistan's twin ports can be a game changer, as noted by the regulatory compliance and strategic leadership. He currently serves
as Executive Vice President at a top-tier commercial bank in
Centre for Strategic and Contemporary Research, CSCR on
Pakistan.
April 22, 2026:
Co-Author: Ms. Maria Shahab is an educationist and teachers'
“The twin ports of Gwadar and Chabahar rather than being trainer at Dastak Teachers Training powered by The Citizen
symbols of regional competition, could mark the foundation Foundation with expertise in quality management in higher
education. She is dedicated to empowering teachers, students and
of a new era of integration spanning South, Central and West
women through strategic capacity building and financial literacy
Asia.”
initiatives in collaboration with financial institutions.
ICMA’s Chartered Management Accountant, Mar-Apr 2026 60