Pakistan depends on shipments from its workers abroad, with $38.3 billion in remittances during fiscal year 2025. Saudi Arabia and the United Arab Emirates contribute more than half of that amount. However, the conflict in the Middle East is slowing transfers, affecting families like that of Samina Bibi, who awaits her husband's salary from Riyadh to cover basic expenses.
Blockchain and fintech: solutions for remittance flows 💡
Blockchain-based platforms offer near-instant transactions with lower fees than traditional banks. Fintech companies in the Gulf are implementing smart contracts to automate transfers, reducing reliance on intermediaries. These technologies could mitigate delays caused by geopolitical instability, but their adoption in Pakistan is limited due to a lack of regulatory infrastructure and low penetration of digital wallets in rural areas.
Ironies of fate: geopolitics doesn't understand bills 😅
While Samina waits for her husband's money, banks take their time processing transfers, as if the regional conflict were an excuse to justify their slow systems. The funny thing is that the same countries that send remittances are also experts at blocking them. Perhaps the solution is for workers to send the money in cash via a dromedary; at least it would arrive before geopolitics decides to give a truce.