Abstract
This paper examines the pattern, sources and growth of remittances to Pakistan. It analyses the growing trend of remittances and share of remittances to GDP over the period 1972-2014. We use the kinked exponential model (Boyce, 1986, 1987) to estimates the growing trend of remittances in Pakistan. The results show that remittances received by Pakistan have three distinct growth phases over the study period – Phase I (1973 – 1983), Phase II (1984 – 2000) and Phase III (2001 – 2014). The remittances received by Pakistan have positive growth during the first and the third period while the second period shows negative growth. Before globalization, the UK was the major source of remittances to Pakistan but after globalization, the sources of remittances to Pakistan have been cantered on Saudi Arabia, the UAE, and other Gulf countries.
Highlights
Remittance is the income that migrants sent back to their homes
The percentage share of remittances coming from different sources to Pakistan is calculated and the table (1) shows that in the seventies, more than half of the country’s total remittances were coming from the United Kingdom (UK) alone
Oman was the second most important country after the UK followed by the United States of America and Saudi Arabia
Summary
Remittance is the income that migrants sent back to their homes. It is proved to be a major financial instrument for many people living around the world. It is used globally to ease major or part of the financial burden by the family members left behind. Remittance flows have increased globally from US$ 582 to US$ 613 billion from 2015 to 2017 and are expected to grow and reach US$ 746 till 2020. From these amounts, the low-middle income countries received US$ 574 billion, East Asia and Pacific received US$ 156 billion, the South-Asia received US$ 142 billion, Latin America and the Caribbean received US$ 95 billion, Sub-Saharan Africa received US$ 51 billion, Europe and Central Asia received US$ 64 billion and the Middle East and North Africa received US$ 66 billion. The low-middle income countries received US$ 574 billion, East Asia and Pacific received US$ 156 billion, the South-Asia received US$ 142 billion, Latin America and the Caribbean received US$ 95 billion, Sub-Saharan Africa received US$ 51 billion, Europe and Central Asia received US$ 64 billion and the Middle East and North Africa received US$ 66 billion. (Migration and Development Brief 31)
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