Role of remittances in Pakistan\'s economy

Remittances have proved to be the most important stabilising variable for Pakistan's economy in the recent past. It is one of those indicators that has shown considerable and sustainable progress in the last few years, so much so that now these inflows have snatched the limelight from exports. This is a major shift in the economic structure of the country. This year, Pakistan's remittances are expected to reach $35 billion – a milestone that is already being cherished. However, it is very important to understand the effect that these inflows have on the overall makeup of the economy. So, let us dig deep. Remittance flows are ironic in their very nature with respect to the motives behind them. Academic research shows that these flows in Pakistan's case have been based on both altruistic and opportunistic reasons, which seems a glaring irony.