Personal Remittance, A Reagent of Macroeconomic Stability in the Perspective of Pakistan (2005-2017)

Mahpara Naeem ,Sadaf Mustafa ,Imran S Haque

doi:10.7176/jesd/10-6-10

Abstract

Pakistan is a semi-industrialized economy, which mainly comprehends fabrics, chemicals, food dispensation, cultivation and other activities. Economy of Pakistan is at very stirring phase in structural and financial point of view such as unfavorable balance of payments and high debt profile. To disrupt these unfavorable economic balances many peripheral economic factors act as a source of income or core factor of advantageous balances such as FDI, Remittances, Exports, Foreign aids etc. So this study is aimed to detect pros and cons of personal remittances along with correlation with macroeconomic volatilities. Data is collected from secondary sources during time span of 2005-2017. The period is chosen for study is 2002 to 2017 and numerical data is used for validity. Data is evaluated through statistical software EVIEWS. Standardized criteria is assumed to accept or reject the hypothesis. On the basis of inferences, policies and implication are given in the shape of recommendation for curative measures. Keywords: Personal Remittances, Current account balance, Unemployment, Inflation DOI : 10.7176/JESD/10-6-10 Publication date :March 31 st 2019

Highlights

Economy of Pakistan is at very challenging face in structural and financial point of view such as unfavorable balance of payments and high debt profile
To disrupt these unfavorable economic balances many external economic factors act as a source of income or core factor of favorable balances such as FDI, Remittances, Exports, Foreign aids etc
Personal remittance is one of an essential factor to eradicate economic instabilities and has become an item included in balance of payment located at the portion of current account balance

Summary

Introduction

Pakistan is an imperative and dominant economy of south Asian continent. Economy of Pakistan is at very challenging face in structural and financial point of view such as unfavorable balance of payments and high debt profile. To disrupt these unfavorable economic balances many external economic factors act as a source of income or core factor of favorable balances such as FDI, Remittances, Exports , Foreign aids etc. Remittances as a source of inflow for an economy by the passages of time the term remittances is manipulated and known as “Personal Remittances”.

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