Labour Migration and Remittances as Tools of Diplomacy

Nayab Zahra

Labour migration and remittances have become one of the most significant links between the Gulf countries and South Asia. In search of employment, millions of workers from India, Pakistan, Bangladesh, Nepal, and Srilanka travelled through the Gulf. The hard work of these individuals has not only strengthened the expeditious development of Gulf economies, but it has also provided significant vital lines to their national economies and their families back home. Migration and remittances are considered as powerful tools of diplomacy that shape the relationship between two regions, and these tools are more than just economic issues.

Millions of South Asian workers power Gulf economies while sustaining their home countries through vital remittances.

The real story began in the 1970s, when the oil-rich Gulf States required a large workforce to support their growing infrastructure projects, and for this purpose, the region of South Asia became the natural supplier of Labour with its large population and very limited job opportunities. In different construction sites, domestic services, transportation, and many other sectors in the Gulf, the South Asian workers are dominating today. The deep interdependence has been created by their presence. South Asia needs remittances to support millions of families and also to stabilize their national economies, and the Gulf needs cheap Labour to sustain and endure its development.

The money sent by these workers to their families is not a small contribution for countries like Pakistan, Bangladesh, and Nepal, remittances form a major share of national income. Likewise, this strengthens the relations between the regions and also nourishes the foreign reserves, reduces poverty, and provides families with their basic needs like food, education, and health care. In fact, in the coming years, remittances have been higher than international aid and foreign direct investment. This clarifies how major they are for economic survival, and that’s the main reason why South Asian states are shaping their foreign policy, they cannot ignore the Gulf.

This relationship is not equal and the same every time. At the same time, the Gulf countries can easily change their visa rules, Labour laws, or employment quotas because they are more powerful. South Asian economies are shaken by the sudden restrictions and can cut off billions in remittances. This dependency limits the bargaining power of many South Asian states, which are usually forced to stay quiet on the Labour rights-related issues. Workers living their habitually face many problems like long working hours, poor living styles, withheld wages, and very limited legal protections and rights. Systems like kafala leave much vulnerability to exploitation and also tie workers’ status to their employers. While remittances expose the concealed reality and weakness that South Asia is overdependent on foreign labour markets along with they also bring money and opportunity.

Labour dependence limits South Asia’s leverage, demanding stronger protections and fairer employment frameworks.

Gulf States are trying to diversify their economies and are reducing their dependence on foreign workers, so this situation is becoming more complicated. Policies like Emiratization in the UAE or Saudization in Saudi Arabia are established with the main goal which is replacing the migrants in the states with the local citizens of their states. Although there is no possibility that South Asian labour will disappear overnight, the long-term trends suggest few opportunities and also reduced remittance flows in the future. If this happens, then South Asia, to prevent economic shocks, will need to create more job opportunities at home or find new labour markets.

Still, migration and remittances can become significant and crucial tools for diplomacy if it would be handled wisely. South Asian states could negotiate better labour agreements with Gulf States and to ensure equitable or fair wages, improved worker protection. Instead of working separately, they can also form regional alliances to resolve these types of issues easily through negotiations. Another important step is to properly educate and train workers in their specialized fields, like IT, health care, and engineering. Skilled migrants face fewer issues and problems compared to those who are inexperienced. They enjoyed more privileges, like getting more respect, earning better wages, and facing less exploitation. In addition, the use of diaspora communities by South Asian states to build culture and people-to-people strong ties, which is an addition of another layer towards diplomacy beyond economics.

How the ordinary people, rather than the government, can shape the international ties is clearly shown by the Gulf-South Asia relationship which is shaped by migration and remittances. Every worker is strengthening an economic bond that links two regions together while also supporting their families. But to make this connection sustainable, South Asian countries must fight for the dignity of their foreign workers and also reduce their overdependence on Gulf States. Remittances should not just be seen as cash inflows in the state but also considered as the broader and deepened diplomatic relationship that values human rights, equality, and mutual respect.

Migration, when managed equitably, can serve as a tool of diplomacy beyond economic exchange.

While contributing to both the Gulf and South Asian states, the test of this connection will not be in how much money flows each year, but in how much dignity and fairness the workers are getting treated. Labour migration and Remittances not only persist as economic necessities but also become a significant tool for a stronger and more balanced diplomacy in the coming years if both regions recognize this.

The author is from the International Islamic University, Islamabad, pursuing her degree in BS IR. With a strong interest in global politics, diplomacy, and regional security.