Remittance Business Under Threat

Jakarta, VIVA - As oil-rich Arab countries in the Persian Gulf become targets of Iranian drones and missiles, the prolonged economic disruptions from the Iran war could threaten hundreds of billions of US dollars in remittances sent home each year by millions of South Asian migrant workers in the region. The majority hail from India, Pakistan, and Bangladesh. For decades, they have fuelled the economic boom in Gulf countries, working in construction, hospitality, tourism, and healthcare sectors. The money they send home is not only a vital income source for their families but also a major source of foreign exchange for India, Pakistan, and Bangladesh. Remittances act as a financial cushion for these economies and help cover trade deficits, as quoted from the DW website on Tuesday, 31 March 2026. With energy infrastructure under attack and oil and gas transit routes disrupted in the Strait of Hormuz, the combination of prolonged high energy prices and declining remittances could pose a double threat to the economies of these developing countries. India is the world’s largest recipient of remittances, with inflows hitting a record US$135 billion (Rp2.1 quadrillion) in 2025, according to government data. In the previous year, India received nearly US$40 billion in remittances from Gulf Cooperation Council (GCC) countries alone, accounting for about 38 per cent of total remittance inflows. Those billions of US dollars help finance much of India’s goods trade deficit, according to the data. India is also the largest source of foreign workers in the Gulf region, with more than 9 million Indians living and working there. Bangladesh and Pakistan follow, each sending around 5 million workers to GCC countries. These workers contribute the bulk of Bangladesh’s US$30 billion in remittances and Pakistan’s US$38 billion last year. The war also increases risks to civilians across the GCC region, including migrant workers. Across the area, at least 11 civilians were killed and more than 260 injured, some from falling debris, according to a Human Rights Watch (HRW) press release on 17 March 2026.