To understand Pakistan’s economy, skip the textbooks. Sit with a family waiting for a WhatsApp message that says, “Money sent.” That message changes the mood, a mental calculation of what can be paid first.

Last year, Pakistan received roughly 30.5 billion dollars in remittances. This year is moving at a similar pace, with more than 19 billion already recorded in the first seven months. In January alone, close to 3 billion dollars came in. Economists describe this as strong inflows. For families, it simply means the fridge can be filled and the electricity bill won’t bounce.

Are remittances stabilising the economy? In plain terms, yes. They are one of the few steady sources of foreign currency the country can count on. When dollars come through banks, they help support foreign exchange reserves and ease pressure on the rupee. At a time when debt repayments are heavy and imports of fuel are unavoidable, that steady supply acts like a cushion. Without it, every external shock would hit harder.

But I struggle with the word stabilising. The reality is not elegant. “Most of this money comes from the Gulf, especially Saudi Arabia and the United Arab Emirates.” More than half of total remittances originate there. Last year, over 800,000 Pakistanis officially went abroad for work, and the vast majority headed to those countries.

One of my friends shared a story about his elder brother, who works in Dammam as a driver of heavy vehicles. Before leaving, he paid a recruitment agent a large fee. Money was borrowed from relatives. For months he sent almost his entire salary home just to clear that debt. He lives in shared accommodation with other drivers. Eight men in a room. He video-calls his children at night when the network is stable. This is what sits behind the monthly remittance figure.

Global labour markets are shifting, and that makes this arrangement fragile. Gulf economies are trying to diversify. “They are investing in technology, automation and policies that prioritise hiring their own citizens in certain roles.” When oil prices are high, construction projects multiply and foreign workers are in demand. When oil prices dip or projects are delayed, hiring slows. Contracts are not renewed. That decision, made far away, shows up in a small Pakistani household as anxiety.

Back home, remittance money has changed entire neighbourhoods. In parts of Jhelum and Mirpur, large new houses stand out with polished gates and tiled courtyards. Local shopkeepers acknowledge that much of their sales depend on money coming from overseas. Weddings, school admissions, medical treatments, even small businesses are funded by earnings from overseas. It keeps local markets moving.

Still, we should ask ourselves a difficult question. What happens if the global demand for low skilled labour shrinks? What if visa rules tighten further? Depending so heavily on exporting manpower leaves us exposed to decisions we do not control.

There are practical steps that could make a difference. Recruitment agencies need tighter regulation, so workers are not trapped in debt before they even leave. Skills training should be upgraded so more Pakistanis qualify for higher paying technical and healthcare jobs abroad. At the same time, the government must create serious incentives for overseas Pakistanis to invest in productive sectors at home, not just in property.

Remittances are buying Pakistan breathing space. That is clear. But breathing space is not the same as long-term strength. Real stability will come when families are not forced to send someone thousands of miles away just to feel secure. Until then, the economy rests, quite literally, on the shoulders of men and women working far from home.