Political Instability & Economic Growth
Economic Growth or Downfall? Reviewing the Economic Resonance of Remittances in Pakistan


Misbah Ullah | Prof. Dr. Ehab Elshamy | Prof. Dr. Muhammad Zubair Usmani | Dr.Zahid Ali |
American International Theism University Florida-USA |
Volume: 2 | Issue : 1 (2024/01/01)

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Abstract

Background: The remittance sent by migrant workers to their home countries has a significant impact on the country’s economic development. Remittance positively influences the economy and GDP of developing countries. migrant workers yearly send billions to their home countries. Remittance is incessantly outpacing a country's official development aid and has become the second most significant source of economic development other than the FDI (Foreign Direct Aid).

Aim: The study aims to review, analyse and summarise the existing literature regarding the impact of remittance on Pakistan’s economy.

Methodology: The study comprises a qualitative research design. Data was collected through numerous articles related to remittances and their impact on the economy, particularly, Pakistan’s economy and GDP growth.

Results: The results of the study determined the positive impact of remittance inflow on Pakistan’s economy. The results discussed the increasing inflow of remittances from the fiscal year 2013 to the fiscal year 2022 along with the determinants of expected decline in remittance.

Conclusion: The outcomes revealed the uprise in remittances inflow to Pakistan from FY13 to FY22. The study showed the yearly percentage of increasing remittances, along with highlighting the factors of the expected decline in the remittance inflow in the upcoming years.