Pakistan faces fresh trouble as UAE expels thousands of workers amid rising tensions with Abu Dhabi

In another blow to debt-ridden Pakistan, the United Arab Emirates has reportedly expelled thousands of Pakistani Shia workers in recent weeks, adding fresh strain to already troubled ties between Islamabad and Abu Dhabi. The move comes just a month after the UAE demanded repayment of a $3.5 billion loan from Pakistan, according to reports cited by The New York Times. Community leaders and clerics in Pakistan say the deportations have affected thousands of families and could hurt the country’s economy, which depends heavily on remittances from workers in the Gulf.

Thousands of Pakistan families affected

The New York Times reported that deportations of Pakistani Shia workers have been taking place since at least mid-April. An Islamabad-based cleric linked to a Shia political organisation claimed that around 5,000 families have already been registered as affected by the expulsions.

At the same time, leaders from Shia-majority villages in Pakistan’s northwest said nearly 900 men had returned from the UAE in the past few weeks. The reported crackdown has raised concerns because nearly 2 million Pakistanis live and work in the UAE. Last year alone, they sent back around $8 billion in remittances, making the Gulf nation one of Pakistan’s biggest overseas income sources.

Reports say workers from other countries not targeted

According to The New York Times report, the action appears focused mainly on Pakistani Shia workers. The newspaper said Shia workers from countries such as Iraq and Lebanon were not part of the deportation campaign. Eight business owners operating in the UAE also told the newspaper that several Pakistani employees had been expelled recently.

West Asia war may have worsened tensions

Pakistan-UAE relations had reportedly been under pressure for more than a year, but the ongoing conflict in West Asia appears to have widened the gap further. Pakistan has attempted to position itself as a mediator during the conflict. However, reports suggest the UAE was unhappy that Islamabad did not strongly condemn Iranian attacks on Emirati territory.

Iran reportedly launched more missiles and drones at the UAE than at any other country in the region during the conflict. While Pakistan pushed for negotiations and ceasefire efforts, the UAE was said to favour stronger military pressure against Iran. This difference in approach reportedly created suspicion in Abu Dhabi that Pakistan was leaning closer to Tehran.

Saudi Arabia factor adds another layer

Pakistan’s growing closeness with Saudi Arabia has also reportedly become a sensitive issue for the UAE. After Abu Dhabi sought repayment of the $3.5 billion loan, an amount equal to nearly one-fifth of Pakistan’s foreign reserves, Saudi Arabia stepped in with financial support. Riyadh reportedly granted Pakistan $3 billion and also extended an existing $5 billion loan by more than a year.

Last month, reports also emerged that UAE telecom giant Etisalat was considering exiting Pakistan. The company currently owns a 26 per cent stake in Pakistan Telecommunications, the country’s largest telecom company.