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Workers' Remittances from the Middle East and their Effect on Pakistan's Economy

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  • NADEEM A. BURNEY

    (akistan Institute of Development Economics, Islamabad)

Abstract

In recent years, remittances, especially from the Middle East (ME), have become an important source of foreign exchange earnings for Pakistan. The absolute amount of these remittances, over the last several years, have been so large, that they were bound to have a significant impact on the Pakistani economy, through improving its balance of payments position and reducing its dependence on external fmancing. For example, in 1982-83 the inflow of remittances from the Middle East to Pakistan, through official channels, was 2.4 billion U.S. dollars which was 70 percent of total exports of goods and non-factor services. The recent decline in oil prices and the slowing down of economic activity in the Middle East, however, has resulted in the reduction of the inflow of remittances. The main concern, now, is what would the level of remittances be in future years and how will the economy readjust itself to the reduced inflow of the remittances.

Suggested Citation

  • Nadeem A. Burney, 1987. "Workers' Remittances from the Middle East and their Effect on Pakistan's Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 745-753.
    • Handle: RePEc:pid:journl:v:26:y:1987:i:4:p:745-753
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    File URL: http://www.pide.org.pk/pdf/PDR/1987/Volume4/745-753.pdf
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    Cited by:

    1. Jawad, Muhammad & Qayyum, Abdul, 2015. "Modelling the Impact of Policy Environment on Inflows of Worker’s Remittances in Pakistan: A Multivariate Analysis," MPRA Paper 85497, University Library of Munich, Germany.
    2. Mohammad Irfan, 2011. "Remittances and Poverty Linkages in Pakistan: Evidence and Some Suggestions for Further Analysis," PIDE-Working Papers 2011:78, Pakistan Institute of Development Economics.
    3. Qayyum, Abdul & Javid, Muhammad & Arif, Umaima, 2008. "Impact of Remittances on Economic Growth and Poverty: Evidence from Pakistan," MPRA Paper 22941, University Library of Munich, Germany.
    4. Sohail J. Malik & Naeem Sarwar, 1993. "Some Tests for Differences in Consumption Patterns: The Impact of Remittances Using Household Income and Expenditure Survey Data of Pakistan 1987-88," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 699-711.
    5. Amjad, Rashid, 2010. "Remittances and poverty in Pakistan: a note," MPRA Paper 38297, University Library of Munich, Germany.
    6. Asmat Ullah & Syed Waqar Hussain & Zahoor Khan, 2012. "Micro-econometric Analysis of Impact of Remittances on Household’s Welfare: Empirical Evidence from District Peshawar," Oeconomics of Knowledge, Saphira Publishing House, vol. 4(1), pages 2-13, January.
    7. Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).
    8. KHURSHID, Adnan & KEDONG, Yin & CĂLIN, Adrian Cantemir & POPOVICI, Oana Cristina, 2017. "A Note On The Relationship Linking Remittances And Financial Development In Pakistan," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 21(4), pages 6-26.
    9. Fatima, Kiran & Qayyum, Abdul, 2016. "Remittances and Asset Accumulation of Household in Pakistan," MPRA Paper 72945, University Library of Munich, Germany.

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