Pakistani labor immigration to the United Arab Emirates (UAE) has declined sharply during the first quarter of 2025, primarily due to frequent changes in visa policies, according to industry experts. Meanwhile, Saudi Arabia has emerged as the dominant destination for Pakistani workers, accounting for approximately 70 percent of total labor immigration during the same period.

Waqas Ghani, Head of Research at JS Global, said that the UAE’s share in Pakistan’s total labor export has plunged to just 4 percent, a dramatic decrease from its historical average of 35 percent.

“If Pakistan succeeds in getting the UAE to ease immigration policies, remittances could see a substantial boost,” Ghani noted, highlighting the potential economic impact of these shifting migration patterns.

The changing dynamics of labor migration have significant implications for Pakistan’s remittance inflows, which are a crucial source of foreign exchange for the country. Experts suggest that with a strengthened framework to curb unofficial money transfer channels, remittances from Saudi Arabia and the UAE combined could potentially contribute over 50 percent of Pakistan’s total remittance inflows going forward. For comparison, their contribution during the first nine months of fiscal year 2025 stood at 46 percent.

This shift comes at a time when Pakistan recently reported record-breaking remittances, according to the State Bank of Pakistan Governor. The changing migration patterns could further influence these flows, making diplomatic efforts to address UAE visa policies increasingly important for Pakistan’s economic stability.