Pakistan, March 14 -- Rising geopolitical tensions in the Middle East could threaten Pakistan's crucial remittance inflows, a key pillar of the country's external finances, according to a report released on Friday by Insight Securities.

Remittances have become increasingly important for Pakistan's economy over the past two decades, now generating more foreign exchange than the country's exports and helping stabilize its balance of payments. About 55 percent of Pakistan's remittance inflows come from the Middle East, particularly the United Arab Emirates and Saudi Arabia, making the country vulnerable to economic disruptions in the region.

Pakistan sends millions of workers to Gulf economies, and the money they send home is a major sourc...